If Apple Inc. (NASDAQ:AAPL) is to continue to lead in the industry, DFC Intelligence’s Founder and CEO David Cole told CNBC that the company needs to have a great product pipeline.
Cole noted that what is playing out today in the consumer electronics space is a massive battle to win the hearts and souls of consumers. Companies are racing to deliver the latest and greatest hardware devices to consumers and, in the process, develop all kinds of proprietary entertainment services and content.
Sony Corp (ADR) (NYSE:SNE), Cole added, was the company that was in the driver seat 10 years ago, when it came to having devices that provided ways for people to consume content like movies, music and games. This has flipped with Apple Inc. (NASDAQ:AAPL) leading the pack after it introduced the iPod, the iPhone and the iPad.
However, the CEO of DFC Intelligence noted that Apple Inc. (NASDAQ:AAPL) faces a lot of competition with companies like Google Inc (NASDAQ:GOOGL), Samsung, Microsoft Corporation (NASDAQ:MSFT), Sony Corp (ADR) (NYSE:SNE) and Amazon.com, Inc. (NASDAQ:AMZN) making big pushes.
“There’s quite a bit of competition out there and Apple really needs a great product pipeline to continue to be in the frontline of consumers,” he added.
In addition, the executive told CNBC that it is hard to imagine what the iPhone-maker in the TV side. It’s best to adopt a more skeptical view about this matter and get in a wait-and-see mindset.
In conclusin, Mr. Cole provided his opinion on one of the most discussed recent events, Apple’s acquisition of Beats Electronics. He considers that one of the reasons Apple bought the “cool” brand of consumer electronics is because it will help the company to be “cool.”
“They run the risk of loosing that cool factor as things like the iPad started to be used in school and kids are doing their homework on them, and suddenly it is not that cool anymore. […] it sounds like a big acquisition at $3.0 billion but with a company with as much money as Apple, it’s really small,” Mr. Cole concluded.
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