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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