Editing Apple Inc. (section)

=== Challenges and Market Headwinds   ===
Despite its successes, Apple faced significant challenges in 2010. Industry-specific issues were prominent, with slowing iPod sales marking a pivotal shift in consumer preferences. Once a cornerstone of Apple’s revenue, the iPod saw a 52% drop in holiday sales as the iPhone began cannibalising its market share<ref>{{cite web |url=https://www.hbs.edu/faculty/Pages/item.aspx?num=38679 |quote=In 2010, Apple faced slowing iPod sales and increasing competition in the smartphone industry. }}</ref>. Meanwhile, the smartphone industry became increasingly competitive, with Google’s Android platform gaining rapid traction and rivals like Samsung and Microsoft collaborating to enhance smartphone-computer workflows, directly challenging Apple’s ecosystem<ref>{{cite web |url=https://www.phonearena.com/news/Samsung-Microsoft-partnership-competition-to-Apple-ecosystem_id118327 |quote=Samsung and Microsoft teamed up in 2010 to compete with Apple's ecosystem by improving smartphone-computer workflow. }}</ref>.  

Regulatory and legal hurdles also emerged, including a high-profile patent lawsuit from Eastman Kodak in January 2010, which accused Apple of infringing on digital imaging technology<ref>{{cite web |url=https://en.wikipedia.org/wiki/Litigation_involving_Apple_Inc. |quote=In January 2010, Eastman Kodak sued Apple and Research In Motion (RIM) over patent disputes. }}</ref>. Additionally, early signs of antitrust scrutiny began to surface, particularly around Apple’s App Store policies and its growing market dominance<ref>{{cite web |url=https://www.techpolicy.press/under-pressure-antitrust-and-competition-authorities-are-now-focusing-on-apple/ |quote=Apple faced intense regulatory scrutiny in 2010, including antitrust investigations in the EU and U.S. }}</ref>. These pressures forced Apple to double down on innovation, focusing heavily on the iPhone and iPad to maintain its competitive edge.