The Simple Psychology Behind Apple's Fall
The Simple Psychology Behind Apple’s Fall - Bob’s Tech - Medium
Customers are willing to pay upwards of $1,000 for a phone — but only if they’re rewarded with just as much statusPhoto: MockupEditor/Pexels, modified by Robert JamesonApple has been having a hard time. In late 2018 and early 2019, the company’s share price took a massive dive in anticipation of falling iPhone sales, which the company’s most recent earnings report confirms. Yet prior to this point, things at Infinite Loop seemed to be going swimmingly. Just a few months ago, Apple became the world’s first trillion-dollar company and seemed poised to dominate the tech industry for decades.What went wrong?Detailed analyses would reveal many contributing factors: a Chinese economic slowdown, prices that repel Chinese consumers, and increased competition with Samsung Galaxy and Google Pixel phones. Others argue that the seeds of Apple’s troubles have been germinating since Tim Cook took over.All these may be true, but the simplest cause is clear and simple: Cook and his senior executives failed to appreciate basic human psychology.Humans — particularly those in the market for an iPhone — have status anxiety. They want to own the latest, greatest, thinnest model, and they want their friends to feel envious. With the latest line of iPhones, Apple…