Linked by Thom Holwerda on Sat 5th Apr 2014 13:35 UTC

Internal Apple documents from last April shown in court today paint the picture that the company was scrambling to identify and determine ways to compete with devices running Android, as well as keep sales of the iPhone from petering out amid growing competition.

Pages from a 2014 planning document last April, shown during a cross-examination of Apple's marketing chief Phil Schiller, noted that smartphone growth rates were declining, something that could impact iPhone sales. Worse yet, the document said, was growing consumer interest for less expensive, larger-screened smartphones, with a headline on the page reading "consumers want what we don't have."

Apple is doing just fine in the US. In large parts of Europe and the rest of the world - not so much. I don't mean to say they are in trouble or will die - so let's get that strawman out of the way straight-up - but Apple's leadership (unlike some others) is smart enough to know that what matters is not last year, this year, or even next year - what matters is five years from now. Once people get accustomed to relatively cheap, non-iOS devices with large screens, they won't be going back to a phone with a tiny (by comparison) display that costs twice as much.

So yes, those larger-screen iPhones are coming.

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They are not going broke anytime soon. Dell, Samsung etc are more likely go broke before Apple. Apple has very few product lines and runs a very lean operation that makes them quite resilient. And they have a few dollars to spare to get them through the lean times.

Samsung is a massively diversified conglomerate that owns everything from hotels to pharmaceuticals - it has almost no possibility of going broke. Apple on the other hand is literally a two trick pony - tablets and phones - and is losing market share and mind share daily.

Apple's growth rate will slow, and they will settle into a "small" but profitable niche while Android makers begin the inevitable run to the bottom that killed the PC industry. There will eventually be three or four companies left standing, all making small profits while Apple makes larger profits off a small market share.

The last time Apple decided to be small and profitable (1990s) it came perilously close to bankruptcy.

Basically, the smartphone market will go the same way as the PC market.

Which means Apple won't be making money either.

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