Documents made public during the second Apple vs. Samsung trial reveal that Cupertino clearly knows customers want what it does not have.
Apple’s iPhone is facing a crisis of innovation in the smartphone world as the company that defined the form factor can no longer lead the market amidst tough competition from the Android world, according to internal documents made public during Apple and Samsung’s latest spar in court.
The documents were made public during Samsung’s cross examination of Phil Schiller, a senior vice president at Apple. These internal documents show concerns, at least those of the company’s sales teams, that iPhone growth could stall due to increasing competition from Android devices.
According to the documents, it seems like Android OEMs figured out how to tackle the iPhone; they beat it on price and they beat it on display size, two crucial aspects that most customers consider before purchasing a smartphone. A member of Apple’s sales team wrote in a document prepared for a fiscal 2014 offsite meeting that “competitors have drastically improved their hardware and in some cases their ecosystems.” Only certain portions of the documents were shown to the jury, but its evident that there’s growing concern within the ranks with regards to a rising Google ecosystem.
It really does boil down to the fact that most customers want what Apple does not have. The iPhones are not priced competitively enough, and have stuck with 4-inch display sizes for far too long. The internal document itself notes that growth in the smartphone market is now being driven by smartphones that either cost less than $300 or cost more than $300 but have larger displays. All major Android OEMs have flooded the market with multiple product lines that cater to both.
For his part though, Schiller said in his testimony that he doesn’t agree with much of the document. He also said that the document does not represent company policy. Though it is believed that Apple is going to follow market trends this time around and launch iPhones with significantly larger displays.