Analyst: Apple’s biggest innovation challenges are in software, not hardware

In a note to clients — as noted by MacRumors — KGI Securities analyst Ming-Chi Kuo says Apple’s biggest challenge in innovation recently has been in software, not hardware. Here are some of his observations:

In several cases we have seen Apple lagging in software versus hardware development, which bodes badly for its innovation strategy of software and hardware integration.”

We think Apple's endeavors in the AR field should have enabled it to offer AR applications popular with the market before the Android camp, including: (1) the announcement of ARKit, an AR development tool, ahead of Google; (2) customization of the SoC (including CPU and GPU); and (3) customization of the rear camera. 

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However, since the debut of the ARKit nearly a year ago, there has been no heavyweight AR application on iOS. Given that the AR version of Honour of Kings runs not only on the iPhone but also on OPPO's smartphone, Apple's first-mover advantage gap in AR has been significantly narrowed by OPPO.

Then, of course, there have been the multiple glitches in iOS 11 and macOS High Sierra. Apple has been criticized for security glitches in both iOS and macOS, as well as for how it handles battery issues on older devices. This has lead the company to tweaked its iOS software plans for 2018, delaying some features to 2019 in an effort to put more focus on addressing performance and quality issues, according to an Axio report.


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