Can Apple iPhones keep top spot in emerging markets?

Joyce See
12 August, 2012
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Apple’s iPhone success in the US is apparent to most investors, with the iPhone and iPad keeping Apple stock up for such a long time. The question is, can Apple duplicate its successes in emerging markets where cheaper smartphones prove to be stiff competition?

According to Deliotte, 300 million smartphones are expected to be sold this year, predominantly in emerging markets. 150 million smartphones are predicted to be sold in China, making China a key player in Apple’s coming growth, reports The Motely Fool.

China has a huge demand for smartphones, having overtaken the US and is now the world’s biggest market for smartphones making it one of Apple’s largest markets, second only to the US.

However, analysts are concerned that Apple might be losing it’s footing in China with revenues falling by 28 percent in the second quarter, to US$5.7 billion. The drop can largely be credited to the intense competition Apple faces in the China region.

Samsung’s Android-powered phones are Apple’s biggest competition with Samsung currently having a 30 percent market share over Apple’s 10 percent. Besides Samsung, Microsoft and it’s partner Nokia have their eyes on China’s emerging market as well, The Motely Fool reports.

Microsoft believes that the main reason behind Android’s success in China is the low prices and intends to follow suit pricing their phones between (US$100 – $150.

Will Apple drop its prices in order to compete in the lower spectrum of the smartphone market and will it be able to duplicate the smartphone successes it has seen thus far?

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