Stefan Kühn: “Challenges and opportunities for Apple in 2024”

(openPR) On Monday, September 9, 2024, Apple once again unveiled its new products, which is traditionally celebrated as “Apple Glow Day.”

This year, the new iPhone 16 and a number of other products were in the spotlight, but the initial enthusiasm quickly cooled. The economist and Financial expert Stefan Kühn commented on the presentation and its economic and technological implications. In his analysis, Kühn emphasized that although Apple had made technological progress with the new iPhone, the major breakthroughs in the field of artificial intelligence (AI) had been exhausted. The general tenor among analysts is that Apple was not able to extend its lead over the competition as hoped.

Kühn sees both opportunities and challenges in the recent developments at Apple. The company seems to be falling short of expectations, especially in the area of ​​AI, which could have not only technical but also economic consequences. In addition, legal decisions such as the one by the European Court of Justice (ECJ), according to which Apple must pay 13 billion euros in back taxes, have long-term effects on the company. This report examines the various aspects of the recent developments at Apple based on Kühn's economic and financial expertise.

Stefan Kühn, economist and financial expert on the developments at Apple

Progress without breakthrough: The new iPhone 16

The iPhone 16 is the focus of Apple's product presentation, but Stefan Kühn emphasizes that the expectations for the new model have only been partially met. Technically, the iPhone 16 has caught up with the leading competitors, but real innovations that could revolutionize the market have been exhausted. What is particularly noteworthy, says Kühn, is that the prices of the new iPhones have remained unchanged, which shows that Apple is currently focusing more on retaining its premium customers than on tapping into new buyer groups.

Kühn stresses that the lack of price adjustment in a highly competitive market could mean that Apple will defend its margins rather than gain market share. This strategy could prove problematic in the long term as technological advances in smartphones are accelerating. If Apple fails to come up with a significant innovation in the foreseeable future, the company risks falling behind, especially against aggressive competitors from Asia who offer similar products at lower prices.

Artificial Intelligence: Disappointing Progress?

One of the most discussed topics in the technology industry is the use of artificial intelligence. Apple had raised great expectations in the run-up to the presentation, especially regarding the integration of AI into its products. However, the actual progress in the field of AI is disappointing, says Kühn. The new AI technologies are not available in Europe and China, and they are only being introduced gradually in the USA. A key obstacle is that the necessary iOS upgrade, which is supposed to support the AI ​​functions, has not yet been fully developed.

Kühn sees this delay as a sign that Apple has fallen behind its competitors, especially from Silicon Valley. While companies like Google and Microsoft have already invested heavily in the development of AI-based products and services, Apple seems to be acting more cautiously. However, Kühn emphasizes that in the past, Apple has often entered new technologies later than its competitors, but then became the market leader by perfecting the technologies and making them accessible to the mass market.

Another interesting point that Kühn addresses in his analysis is the way in which Apple has developed its AI. Unlike many other companies, Apple does not process its users' data externally in the cloud, but locally on the devices themselves. This has the advantage of better protecting users' privacy, which is a central feature of Apple's philosophy. Kühn sees this as a major difference to other technology companies and a potential competitive advantage for Apple, especially in an environment where data protection and security are becoming increasingly important.

The iWatch: Cosmetics instead of innovation

In addition to the iPhone 16, the new Apple Watch models were a highlight of the product presentation. The iWatch 10 and the Ultra Watch were presented with larger displays and new color options such as matte black. As Kühn notes, however, these are more cosmetic changes than real innovations. The Apple Watch is still the leading product in the wearables segment, but real technical innovations that could inspire users are lacking.

Interestingly, Kühn points out a rather underrated feature of the new Apple Watch: the higher-end AirPods can now also be used as a hearing aid. This could be of great interest to a growing target group of older users. However, it is questionable whether this feature will be achieved in order to significantly increase sales. Kühn argues that although Apple has been waging war in the wearables sector in recent years, the company needs to introduce innovative features to maintain this position in the long term.

The legal challenges for Apple: Back taxation in Europe

Another important topic that Stefan Kuehn His analysis takes into account the ruling of the European Court of Justice (ECJ) that Apple must pay 13 billion euros in back taxes to Ireland. This decision was justified by the fact that the extremely low tax rates granted by Ireland (0.015%) were classified as illegal state aid. Kühn emphasizes that this ruling could have a significant impact on Apple's finances and its position in Europe.

Apple has received massive criticism for its tax arrangements in Ireland in the past, but this ruling could force the company to rethink its tax strategies. Kühn explains that the ECJ's decision not only affects Apple, but also other multinational companies that use similar tax treaties. In the long term, this could lead to higher tax payments and possibly a relocation of parts of the company.

However, Kühn warns against overestimating the impact of the ruling. Apple is financially strong enough to bear this burden and the company has enough liquid assets to make the additional payments without this affecting its operations. Nevertheless, the ruling could be a sign of stricter regulatory measures against large technology companies in Europe, which could affect Apple's business prospects in the region in the long term.

Apples role in global competition

A central theme in Kühn's analysis is how Apple can position itself in an increasingly globalized and competitive market. While Apple has been particularly successful in the US and Europe in recent years, Kühn sees growing challenges in other parts of the world, particularly in Asia. The Chinese market, which is crucial for Apple, is showing signs of weakening, partly due to growing competition from local manufacturers such as Huawei and Xiaomi.

Kühn emphasizes that Apple must continue to invest heavily in Asia in order to maintain its position. However, he also sees the risk that the trade conflict between the US and China could have a negative impact on Apple's business. The company has already had to contend with tariffs and other trade restrictions in the past and there is a possibility that the situation will worsen further. Kühn recommends that Apple diversify its production sites and invest more in other Asian markets in order to reduce its dependence on China.

Sustainable business and environmentally conscious action: Apple's green agenda

Another topic that has gained importance in recent years is sustainability. Apple has launched a number of initiatives in the past to make its products more environmentally friendly and reduce its carbon footprint. Stefan Kühn praises these efforts, but points out that Apple still needs to do more to become truly sustainable.

Apple has set itself the goal of becoming completely carbon neutral by 2030, which includes the entire supply chain and the life cycle of products. Kühn sees this as a positive step, but emphasizes that implementing these goals is a major challenge. Rare earths and other environmentally harmful materials are still used in the production of electronic devices, and it remains to be seen whether Apple can actually achieve its sustainability goals.

Another issue Kühn addresses is reducing electronic waste. Apple products are known for their high quality and durability, but the company has also been criticized in the past for making it difficult to replace batteries and other components, which leads to older devices being disposed of more quickly. Kühn wants Apple to create more incentives to extend the lifespan of its products and improve the recycling process.

Conclusion: Apple caught between opportunities and challenges

In summary, Stefan Kühn's analysis shows that Apple is facing a number of challenges despite its market leadership. The new iPhone 16 may be technologically impressive, but real innovations that could revolutionize the market have failed to materialize. Apple has not achieved the breakthrough it had hoped for in the area of ​​artificial intelligence, and there have only been cosmetic changes in wearables.

The European Court of Justice's ruling that Apple must pay 13 billion euros in back taxes could have long-term effects on the company's financial strategy, especially in Europe. In addition, Kühn sees growing challenges in global competition, especially in Asia, where Apple must invest more in new markets to maintain its position.

However, Kühn is optimistic that Apple can overcome these challenges if the company continues to focus on innovation and adapt its global strategy. Sustainability and data protection could be important competitive advantages in the future that will allow Apple to stand out from the competition. However, it remains to be seen how the company will develop in the coming years and whether it can continue to defend its leading position in the technology industry.