Shrinking market share, arrogance, out-of-date technology and Samsung lawsuit point to the decline of the mighty Apple empire

iPhone 5 mockup (photo pinoytutorial)

The Apple versus Samsung lawsuit started this week in a California court and it promises to be a knock-em-down brawl with Apple battling both for the jury and the hearts and wallets of the public.

The outcome is almost certain – Apple has lost the game. 

You do not win marketing wars in court. Everyone knows you have lost when your only resort is to sue.

When the lawsuit was launched, the Samsung Android smartphone was not even a contender for the public’s money. Today, Samsung dominates the smartphone market. Customers have spoken: they like the Samsung Android phones better than the Apple iPhone.

On the horizon is the Microsoft Nokia combination that will change the game so much that even Samsung is betting on Microsoft with a Windows 8 phone.

Nokia have a few cards up their sleeves like their 41 MB Pureview video camera that is so good, you don’t need a camcorder anymore. Pureview boasts hi-fi sound and real HD movies. If your friends are recording Pureview videos of concerts and events, you will want it too.

What is Apple doing while the competition is innovating? They are suing their biggest competitor over a two-year old design.

During the 1980’s, Steve Jobs wasted Apple’s resources suing Microsoft. In the end, Microsoft won the hearts of customers with Windows achieving over 90% of the installed base for the next two decades.

Samsung Galaxy S III versus Apple iPhone 4s, size matters (photo iPhoneios Jailbreak)

Samsung has out performed Apple with the new Galaxy S III which is the hottest phone in the market.

You have to pay $150 for a Galaxy S III and the iPhone 4s is being given away.

That tells the market what the relative value of the two phones is.

Of course, Apple will ship the iPhone 5 in September, only a year late.

Will it catch up with everyone else in the smartphone business? Will the iPhone 5 actually have a competitive screen to the 4.8 inch Galaxy S III? Most people doubt that.

Silicon Valley Insider says Apple is screwed if they release the iPhone 5 and it does nothing new. If The iPhone 5 Really Looks Like This, Apple May Be Screwed..

Apple’s financial performance, while excellent, has disappointed investors. The stock has had a meteoric ride from $400 to $650 this year and now languishes around $600. I make no stock price predictions but what goes up must come down in the stock world.

Those prices are driven by the emotional exuberance of the “greater fool” investors who believe Apple will make them rich. Every stock bubble is based on growth and Apple’s growth has already shown weakness. It has to since the competition has caught up with Apple and are gleefully passing it.

Investors are a fickle lot. While the stock is sky-high there will be plenty of stock pundits promoting it but the bears know that the salad days of Apple are probably over.

Apple’s arrogance was something we swallowed when they were the only game in town. The worm is slowly turning away from apple and the lawsuit just looks pathetically desperate.