Peter Thiel: Apple's Time as Innovator Has Come and Gone

Peter Thiel, the contrarian online mover and shaker, is suggesting that  Apple's time as a technology innovator has come and gone.

In The New York Times "Confirm or Deny"column with Maureen Dowd on Wednesday, the co-founder of PayPal and one of Facebook's first investors said the smartphone may have reached its innovation peak.

"We know what a smartphone looks like and does," Thiel told Dowd. "It's not the fault of Tim Cook, but it's not an area where there will be any more innovation."

It's a bold prediction for one of the world's most valuable companies. Apple claimed that top spot in 2010, surpassing Microsoft, but has been in a slump since mid-2015 when iPhone sales slowed down, reported Forbes magazine.

Thiel's analysis was supported by Fortune's Robert Hackett.

"Despite Thiel's reputation as an avowed contrarian, his argument that the tech giant will struggle to innovate beyond the iPhone-as-we-know-it is not exactly unconventional," said Hackett. "Amid slipping sales, analysts have voiced concerns that Apple, whose market cap exceeds $600 billion, has no 'next big thing' in sight to combat declines in revenue growth."

"Feeding the flames of skeptics, Apple last week reported that it missed its annual sales and profit goals for the first time since 2009, affecting executive compensation."

Yoni Heisler of tech website BGR said he believed Thiel was referring more to where the next big technology innovation comes from rather than predicting the end of Apple.

"It's an interesting take because Thiel, as opposed to many armchair pundits, isn't declaring that we've reached peak iPhone and that Apple is about to enter a 10-year period of stagnation," said Heisher. "Rather, Thiel is simply articulating that the next big wave of innovation will not center on the smartphone. Regardless of whether you agree with him or not, it's certainly not an unreasonable take."

"All the same, it will be interesting to see if Apple has any hidden tricks up its sleeve with its 2017 iPhone, a device that will likely be called the iPhone 8."

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