Apple has targeted their products in developing countries with higher incomes in order to position itself as a premium product. This focus has served Apple really well, allowing the company to capture extremely high margins while continuing to illustrate growth in sales. However, these markets are becoming saturated and growth is moving to emerging markets. The problem Apple may potentially face is a lack in significant presence in key growth areas.
Despite the initial hype, according to iStocknow.com, it seems that the initial thirst for the iPhone 6 has been quenched, and now anyone who wants an iPhone 6 is likely to find one at their local Apple location with very few exceptions.
The Samsung S5 seems to be favored by many over the iPhone 6 and the Samsung S6 is expected to surpass the iPhone 6 on most, if not all, metrics.
It is predicted by IDC, that within the next 10 years, India, China and Africa will emerge is key markets for smartphone devices. Both North America and Western Europe are forecasted to drop under 20% of the world market by 2018.
This data has attracted competition and opportunity for Apple’s opponents, even those at the high end of the marketplace.
Since the 2nd quarter of 2011, Androids market share more than doubled, giving the Android community much to rave about, while Apple’s market share plummeted from 18.3% to 11.7%.