Monday, October 21, 2013

Apple's 5c Fails To Amuse

Apple Inc.'s (APPL) new business strategy is inclined towards emerging markets, due to threat of cheaper competition. Hence, the company introduced two new products on September 10, iPhone 5c and iPhone 5s. The iPhone 5s is the continuation of the iPhone line. However, the iPhone 5c is a device for consumers in the developing markets. This launch is considered as the initial step towards Apple's new business strategy.
In 2013, emerging smartphone markets are likely to grow 45%. Analysis suggests developed markets are not even close behind, with the growth rate of not more than 14%. The conclusion is simple- emerging markets are growing at a rapid rate, while the developed markets are at a point of satiety.
The International Data Corporation (IDC) has reported that smartphones below $250 compensate 45% of the market share. Competition in the emerging markets is intense. Vendors have no choice but to sell products at affordable rates, as low priced alternatives are easily accessible. This raises a question- will iPhone 5c make it any bigger, considering the emerging markets are price driven? Read More

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