WBS professor: Apple needs a ‘major innovation’ — and soon

Aleksi Aaltonen, assistant professor of Information Systems at Warwick Business School, tells Apple World Today that Apple’s revenue growth is impressive, but that he doesn’t feel the Apple Watch lives up to the hype. The prof, a a former digital designer at Nokia who has studied Apple, says Apple needs a “major innovation,” though he fails to offer any suggestions as to what it might be.

"Apple’s steady revenue growth over the last four years in a very volatile business environment is impressive,” Aaltonen says. “The company knows its business extremely well and is successfully leveraging its current product portfolio to expand into new markets such as mobile payments. Yet, investors always want more growth. Apple could easily keep gaining market share by offering cheaper products, but that would destroy its profit margins and the brand.”

He adds that Apple has always been a very product-centric company and in order to keep performing in the long-run it needs to bring a “major innovation” to the market. The rumored Apple car is still years away and he’s “not sure” if the Apple Watch has lived up to the massive hype. 

“The longer the current product portfolio carries the success without any major new innovations, the bigger the risk that the company stagnates like former mobile market leader Nokia and, in some respects, Microsoft,” says Aaltonen.

Warwick Business School is part of The University of Warwick, which is located in the center of England, within an hour of London.