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4.5 Billion Reasons the Smartphone Wars Have Just Begun

For most of us, it probably seems as if the battle for smartphone supremacy has already been decided. You know the typical gospel that Apple (NASDAQ: AAPL  ) and Google (NASDAQ: GOOGL  ) together have won the day. And although there certainly is some truth to that, it's important as investors to remember that the global smartphone market remains very much in its infancy, as a recent study reiterated. What does this mean for investors? Where's the opportunity going forward? Find out more in the following video.

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  • Report this Comment On June 17, 2013, at 12:47 AM, vernr75 wrote:

    Don't kid yourself. Apple's not going to be a major factor when it comes to future smartphone adoption trends. Apple's so-called 'low cost' iPhone, if it ever materializes, wouldn't be that much less expensive than the current price of an iPhone 4, which Apple sells to carriers for $450 in the US. Being "less expensive" IS NOT the same thing as being "low cost".

    Those 4.5 billion smartphone buyers are going to be buying smartphones that cost $100 or less without subsidy in the US and around $200 or less by the time those phones hit the shelves in their countries of residence. Unless Apple decides to make phones at that price point, they're going to be permanently stuck with less than a billion users globally and iOS will simply become irrelevant in most parts of the world. The main players for that 4.5 billion are Android, Blackberry, Windows Phone. Apple's not in the picture.

  • Report this Comment On June 17, 2013, at 1:45 AM, applefan1 wrote:

    Apple doesn't generally want low margin, no profit products because they don't make enough money to make it worthwhile making. Apple will make new products and as long as they have more demand for their products each year, it's profitable, and it's high quality, that's what they are interested in.

    Apple didn't become one of the most valuable companies by making the cheapest product in the world. Market share is not the most important thing. No one makes much money on a computing product that only sells for $200 or less retail list price. Once you factor in warranty and support costs, that eats into the profit margin pretty quick which means that a lot of these mfg are going to get sold off or go out of business.

    Why do you think IBM, Compaq got out of the PC industry and why HP, Dell and most of the PC mfg aren't making much profit? That industry is too competitive and no one makes much profit. Apple's demand for their products still goes up, but they are still profitable.

    In the smartphone market, Apple still has yet to sign on China Mobile and other carriers in various counties, so that's a lot of pent up demand for Apple. I'd wait until after Apple signs on China Mobile and they have at least 9 months to sell products into that large market to see how much market share increase Apple is going to have. Plus, Apple is working on a larger screen model, which should increase their market share.

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