I have been back and forth on Apple many times in this blog. One constant theme, however, has been that the company needs to innovate aggresively on all fronts. With the stock price at record highs and, in my view, innovation at a low point, the risk-return trade off from owning the stock has turned markedly negative.
Apple finally did come clean today and admit that the company dropped the ball on the MacPro, but not until more than three years had passed. During those three years, the company basically deserted the high-end creative users who relied on Macs and sang their praises. Though not as long in the tooth as the MacPro, the iMac is long overdue for a major upgrade. Microsoft's new Surface Studio far surpasses the iMac. That's right Microsoft is making better more innovative computers than Apple! Even the new Mac books, though beautiful computers, did not break much new ground and Microsoft is gaining in that space too with its Surface Books and Tablets.
iPad innovation has also slowed. The only innovative feature of the model that was introduced last month was the price.
You might say, "who cares," Apple makes most of its money on the iPhone. But the iPhone is a computer. In my opinion, all the products fit together and make up a "computer culture." That culture should lead to innovation on all fronts. At Apple that no longer appears to be the case.