However, Apple Inc. (NASDAQ:AAPL)‘s back is really up against the wall here. Analysts see iPod sales falling, Mac sales flat, and margins taking a hit on iPads and iPhones. It needs to excite investors again by pointing to untapped potential, and a full-blown TV is the most logical introduction to make that happen.
Apple doesn’t have to get specific, and it won’t. However, just the mere promise of entering at least one new product category either by the end of this fiscal year or by the end of the calendar year — to take advantage of the holiday season — would help.
4. China is about to become a bigger market for us.
There’s been a colossal void in Apple’s push into China. China Mobile Ltd. (ADR) (NYSE:CHL) — the country’s largest carrier with 710.3 million customers — doesn’t officially offer the iPhone.
Network compatibility and thornier subsidy issues have kept China Mobile out. Apple can’t let that continue, and reports indicate that Apple CEO Tim Cook did meet with China Mobile on a trip to there earlier this month.
Most of China Mobile’s customers are still on traditional feature phones. If Apple doesn’t find a way to get more economical iPhone devices into the hands of China Mobile customers, their migration will continue to be to Android.
5. Music still matters to Apple.
The iPod peaked in sales three years ago, though the iPhone and iPad have kept iTunes Music Store growing. Reports late last year indicated that Apple was going to challenge Pandora Media Inc (NYSE:P) by introducing a streaming music service. It’s been presumably negotiating with the major labels.
The chatter has resulted in Pandora’s stock taking a hit, but it has done little to boost Apple.
No one should expect Apple Inc. (NASDAQ:AAPL) to make a streaming music announcement tomorrow. However, it can suggest that big things are on the horizon when it comes to music, enhancing its iTunes Match cloud service that’s too limited and too expensive in an ad-supported world. After Ping’s failure, Apple isn’t going to get too many more chances to raise the bar in digital music. It needs to act sooner rather than later.
Moving on
None of this will matter if Apple delivers a blowout quarter with rosy guidance, but even optimists don’t necessarily see that happening.
Apple will need to earn its way back to last year’s highs, and it’s going to have to excite the market before the Apple magic is gone.
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The article 5 Things That Apple Should Say Tomorrow originally appeared on Fool.com.
Longtime Fool contributor Rick Aristotle Munarriz has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, China Mobile, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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