How will the current crisis affect Apple?

You will no longer find the only economist in the world who would not have predicted that we will experience a huge financial crisis in 2020, which, due to some government decisions, may also spread to other years around the world. The question is how big the crisis is. In the case of the Czech Republic, in my personal opinion, the biggest problem will occur in exactly 12 months, when companies will be forced to pay what banks have now lent to them. I can hardly imagine how companies that, after a few days of shutdown, would not have enough cash to overcome the crisis now, within a year and within a day, would earn enough more to pay all their liabilities if they could not save enough at times of extreme economic growth. According to experts, a wave of layoffs will now occur in some sectors now, in some, exactly in a year when the state and banks want their money back.

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The biggest problem for Apple is that it is a global affair that has hit more or less every single country on the planet, and so far it seems that the more economically advanced the country, the more devastating the impact it will be. In recent years, Apple has twisted us into a model where we had to buy a new iPhone, iPad every year and ideally Apple Watch, AirPods, and every 2 to 3 years MacBook. Yet we have never thought about how much a changeover to a new device will occur. Few have wondered whether it was worth the money to buy a new phone that offers just a few extra things compared to the one in his pocket.

People will now start to think much more about what changes they get for their money, what news they get and what it will mean for them. They will be much less willing to spend on things that will not bring them anything essential. A phone that we might have exchanged for a new one after just twelve months last year can suddenly serve us two, three years, and we realize that it still works just as well as the ones just introduced.

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The question is, what will it do with Appl and the whole technology world? The fixed costs of manufacturing, distributing and marketing the product are still the same and it does not matter if it is sold a million pieces or 100 million pieces. Does Apple pay off to present a new model every year, even if its sales fall due to the economic crisis? Or would he rather concentrate on introducing every two or three years a real stone, which is still being bought by the same number of people as he is currently? The answers to these questions are currently in the stars or on the desk in the office of Tim Cook and his closest associates.

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Personally, however, I think it is the perfect time to introduce the cheaper iPhone 9 or want the iPhone SE 2 and continue its line year after year and the actual flagship featured only once every two years. In addition, Apple offers more space for debugging software that has not been much praised in recent years, and it is important to realize that the alignment of software and hardware has always been crucial to Apple. Apple could really focus on it now, and the first tremor that it is already happening is, for example, the update of Keynote and Pages, where, after x years, Apple suddenly added new topics and new features.

On the other hand, just updating the products and linking them to services has been quite crucial for Apple in recent years, and the company will still want people to change at least some products as often as possible. So my personal guess is that Apple will actually introduce cheaper streams and update them year after year with interesting features that will truly be something new for people and bring added value to them. This will force people to constantly update at least something, and premium products will simply be updated less frequently than they do now. However, regular income is maintained and this is the main concern for society.

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