Is There An Apple Evolution Underway?
All is not right with Apple
. There has been a recent slip in the share price of the world’s favorite/despised tech provider. It’s been reported that the sales of the iPhone5 haven’t been as good as they or the markets anticipated, and when even a blip in the success wave that the good ship Apple has been riding since launching the iPhone in June 2007 hits, the price drops.
So what if the big brains that predict future smart phone sales say that Samsung will sell 100M more handsets this year than Apple, the iPhone user wedded to IOS is the most valuable commodity in mobile? They are the higher earners, they are the biggest data consumers and they are the biggest spenders on apps and digital entertainment. However there is a finite number of them and they aren’t upgrading as fast as they used to. The global economy is also playing its part, we are all a little bit worse off than we were and the top end phones aren’t selling as well as they used to.
No matter how you look at it, the iPhone is a pricy piece of kit and the Interface, connectivity and tech advantages it has over many of its rivals are only marginal if you factor the cost for the privilege into the equation. They are heavily subsidized by the mobile phone carriers and retailers are starting to move away from this model as Apple removes its exclusivity to certain providers and carriers see a greater margin in other manufacturers’ kit.
So the market is getting more competitive, other manufacturers are catching up with Apple on tech and UX and the infrastructure that Apple had created and was way ahead of everyone else is now not so different. Apple is going to have to make some big decisions over the next 12 months. Can they sustain their profitability and growth in the smartphone market as a premium lifestyle brand if they get caught up by Android and Samsung. Or, and here’s the big question, do they expand their reach with a secondary iPhone offering, a lower cost lower spec version?
There are solid rumors that they are developing a lower spec smaller phone. A lower cost Apple device, if built, would be perfect for the biggest untapped cell markets in Asia and China.
You heard it hear first.