After
a third straight negative quarter, it seems
that Apple has an urgent need to improve their technology. Within
this time their stocks (Apple Inc.) has dropped 10% while RIM has been
constantly increasing. Is it possible that RIM is making a comeback while apple
is falling behind? After getting these results, analysts say "Apple needs
to get it right in the world's most populous country, where it ranks only sixth
in annual smartphone sales and Samsung Electronics remains the runaway
leader". Can you guess which country their talking about? It is the most
vast growing country this century, China. If they do not secure a deal with
China's top mobile seller "China Mobile LTD" it is possible that this
decreasing trend might continue. While Samsung continues to expand a
make a name in other countries, Apple seems to be focused too much on their few
older customers. Sure it's working right now, but in the future Samsung will
dominate, even RIM is showing their progress and increasing their
stock value. China is a country where smartphones are dominating everyday lives
and to have a relationship with them is a major business opportunity. And it's
not just the fact that Apple doesn't really have ties to China (phone wise),
there are many things other phones provide that the IPhone doesn't have. For
instance, the IPhone is losing out in customers because of its limited
selection on screen sizes. Many people, especially in China like to
watch soap operas on their phones for convenience and the IPhone just can't
provide a large enough screen. Based on IDC's latest figure: "around half
of the more than 60 million smartphones shipped in China in the third quarter
last year had screens that were bigger than 4 inches."
Apple Inc. lacks
in both range of customers AND price. When comparing the prices of the newest
android or blackberry phone, the iPhone seems unnecessarily expensive
given that they are all new smart phones. If this company does not decide to
act on business opportunities in other countries, another option is to lower
their prices. Even though iPhone sales have increased 60 percent last
quarter, the company may be pricing itself out of a golden opportunity while
Samsung and local rivals from take advantage with cheaper phones that rival the
iPhone in quality and usability. If the Apple Company doesn't act fast, they
might just be leaving investors at a major loss because it no longer compares
to the Samsung smart phones. However in contrast to this RIM and Samsung are
taking a huge advantage and their stocks are increasing! Anyone holding shares
right now should hang on to them, there is no doubt that its value will
increase based on the companies' success.
For the exact article you can read it here; http://www.bnn.ca/News/2013/1/25/Apples-China-dilemma-market-share-or-cachet.aspx
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ReplyDeleteBoth Apple and Android took market shares away from RIM for a while now. It’s payback time! There are many users who loved being a Blackberry user and would love to be back on Blackberry. I think 2013 will be the year for both Microsoft and RIM
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