Apple might unleash their smaller and cheaper iPhone to combat Samsung’s gains in the smartphone market.
Though Apple is still a major heavyweight in the smartphone market with their huge selling iPhone, one could argue that their reign is definitely crumbling with major competitors outmatching them in terms of specifications and even quality. One of their biggest competitors is Samsung, who has gained a major market share with their Galaxy phones in the past two years and their sales figures are higher in total than the iPhone and have a loyal fanbase of their own. What does Apple need to do? According to them, a cheaper iPhone may be the end of the problem.
At least that’s what Strategy Analytics analyst Neil Mawston believes. Apparently, Apple has realised that the reason Samsung is outselling them is because they play to a larger market with a wide variety of phones for each price point. Hence, Apple is going to develop their own cheaper iPhone Mini that will attempt to recapture some of that market that slipped away from them, but this is unlikely to happen this year. He tells CNET:
“We believe Apple will have to launch an ‘iPhone Mini’ at some point over the next three years to address the hundreds of millions of prepaid users worldwide that cannot afford the current iPhone. The iPhone 5 is growing fast and profitably right now, so there is limited incentive for Apple to launch a profit-squeezing ‘iPhone Mini’ this year. We expect the ‘iPhone Mini’ to be more likely next year, in 2014, when Apple’s penetration of the global postpaid smartphone market will be nearing saturation and Apple will be forced to discover fresh growth streams elsewhere.”
While all this is a rumor at this point, it’s not too unbelievable to see Apple take this course to not lose out on the smartphone market. With Samsung getting ready to unleash their S4 this year among other phones, Apple needs to step things up and innovate if they want to avoid the route Nokia and RIM took back in their day and lost in the process.
What do you think?