Following another weak day of trading Friday, Apple AAPL dropped below the dreaded “-20% from new highs” threshold and entered its own bear market. The stock is now down about 1.3% on the year, a rare sight for investors who have grown accustom to a company which has grown by an average of 28% each year over the last decade.
Luckily, the end of 2015 is near and Apple’s rough year is almost over. However, it is important for Apple to shake things up in 2016 if it wants to avoid the same fate. But what options does the company have? We’ll explore three ways that Apple might be able to turn its performance around in the New Year below.
Forget the Watch
One would certainly be hard pressed to say that Apple has a hard time “admitting its failures,” simply because the company has so few. However, it does seem like Apple takes pride in its innovative culture and would not be quick to admit that one of its products flopped. And by now we know that the Apple Watch totally flopped.
If you watched the 60 Minutes special about Apple last night, you may have noticed a rather awkward moment between Charlie Rose and Tim Cook when Rose brought up the Apple Watch. While Rose was careful not to proclaim it as a flop himself, he did question whether the product needed “improvement.” Cook casually avoided the question.
So, the first thing Apple can do in 2016 is to move on from the Apple Watch. Its sales have absolutely plummeted since its launch and it seems like too much of a niche product to have a serious impact. Apple needs to focus on roping in new customers that don’t already have iPhones, and the Watch is just not the product to do that.