The world has gone haywire. Why? Henny Penny has been left to breed. You see it on CNN and Faux New all the time. The sky is falling every day with Breaking News that begs you to stop doing anything worthwhile and pay attention to yet another tense moment as a talking head describes how the world is falling apart. Somewhere.
It’s the 21st century version of the Henny Penny effect and it’s growing.
Henny Penny, more commonly known in the United States as Chicken Little and sometimes as Chicken Licken, is a folk tale with a moral in the form of a cumulative tale about a chicken who believes the world is coming to an end. The phrase “The sky is falling!” features prominently in the story, and has passed into the English language as a common idiom indicating a hysterical or mistaken belief that disaster is imminent. Versions of the story go back more than 25 centuries; it continues to be referenced in a variety of media.
Apple has fallen victim to Henny Penny market analysts, hyper critics, members of the technorati elite politburo, and the nattering nabobs of negativism who themselves spawned with pusillanimous pussyfooters to cause the problem in the first place.
In other words, Apple can’t catch a break because Chicken Little.
Anyone who knows anything about business or product marketing or the stock market knows that what goes up, must come down, and Wall Street’s version of the law of big numbers means a company cannot grow revenue and profits and unit sales forever. Even McDonald’s suffers a burger slump now and then.
So be it for Apple.
No, Apple’s financial troubles are not worthy of much consideration because there are no real financial troubles that every other company on planet earth where the CEO would not give up their first born children to have such money problems.
Smartphone sales growth cannot to continue to have record breaking growth forever because market saturation is a real thing; a business equivalent to the laws of physics. There’s a wall out there and we’re seeing company after company hit that wall, and Apple is next. iPhone sales make up more than 60-percent of Apple’s money problem, and it’s likely iPhone has peaked– for now– and growth is no more. For now.
This isn’t totally factual, but you’ll understand the sentiment.
Everyone who wants a premium smartphone already has a premium smartphone, so annual sales growth has plateaued.
What about India and Africa and South America? Residents there don’t have the affordable luxury option that we find in the U.S., Europe, Japan, and now China, but there’s a reason Apple has an iPhone SE in the line. It’s the device with a little power and a little luxury for the rest of the planet’s few but growing number of upwardly mobile people.
It’s not as if Apple has financial problems. The company probably could give away new products for free to every existing Apple customer for a year or two and still have more money than France.
So, why all the negativity over Apple’s most recent financials, the iPhone peak, and softening iPhone demand at the premium end of the product spectrum?
It’s what they do.
Chicken Little and Henny Penny have been reborn as media and market pundits, the talking heads of broadcast and digital print, the technorati elite who have determined it is their job, as ordained by the great digital media god in the sky, to criticize anything, anytime, anywhere, and for any reason whether reasonable or not, and that license to kill has made Apple a very good, highly visible target.
Unlike Google, Microsoft, Amazon, Intel, Samsung, and many other technology giants and industry leaders, every major product in Apple’s entire line is a big money maker and because the company may sell 10-percent less this year than last year during the same quarter is no indication Henny Penny and Chicken Little have much to worry about but we’ll hear from them anyway.