Half of the year has passed, and the smartphone wars continue to rage. While we anxiously speculate on how the three new, affordable Nokia S40 mobile phones are going to affect the global electronics market, Apple might surprise us with a smaller, more affordable iPhone to heat up the battle for market share.
In February 2011 Apple was said to be working on what will be a mini-iPhone, though very few Apple employees knew the details of the project or had seen the prototype. Despite there being no official announcement, it was said that the expected, less expensive iPhone could be ready to face the world by midyear -- if not delayed, as happened to the white iPhone.
The reason for the lower price is due to the fact that the smaller iPhone would use chips and displays of similar quality to the latest iPhone 4, but not any of the new developments, upgrades, and faster chips that Apple is going to use in the next iPhone to be launched in September this year.
Reports say this new mini-iPhone would be targeted at Europe and some developing markets where Nokia's phones and Google’s Android mobile phones have a good share of the market pie. At a reported price of $200 and no obligation to sign a two-year service contract this smaller iPhone would be in a good position to win the race or, at least, to get closer to its competitors in developing and emerging markets.
"Instead of targeting 25 percent of the global mobile phone market, Apple would be going after 100 percent," says Charlie Wolf, an analyst at Needham & Co. in New York, who has a Buy rating on Apple shares. That sounds to me like a real plan for world domination. My bet is that if Apple makes the less expensive iPhone dream come true, it will have a very good shot at conquering the mobile phone world. It will at least advance its goal of 100 million iPhone users by the end of 2011.
Meanwhile, according to Canalys's January 2011 report, Google's Android was the leading platform by the fourth quarter of 2010 in the global smartphone market with a 32.9 percent share. Nokia ranked second with 30.6 percent, while Apple had 16 percent.
If Apple moves ahead with the mini-iPhone we will witness a tough and very interesting battle for leadership in the smartphone market, but it will be quite a long time before any of the leading mobile phone warriors can declare absolute supremacy -- if that ever happens.
In the developing and developed worlds Nokia and Blackberry still control largest market share. In 2009 and 2010 for instance the aforementioned phone makers still hold the market control, according to IDC phone market tracking reports
"High price has been the apparent reason why up to 70% of smartphone users in developing market shirk away from iphone series."
Totally. Having a closer price range can put things in a different perspective. When price is not the issue, what is the most chosen smartphone in the market?
Exactly. Opening new possibilities and a whole new market made up of mobile devices consumers who were waiting for an opportuunity like this for a long time.
I agree with you, the Mini-iphone will also bring down the present cost of the original iphone. In the overall, It will be more accessible to people of various calibers. Other countries can also have access to it and be able to afford it irrespective of their currency value.
We now have to get comfortable, get our popcorn and wait to see how the master plot develops. I am already getting anxious waiting for the day the Apple store opens its doors and presents the new addictive candy, I mean mini-iPhone.
The innovation of a mini iPhone would be in size and price rather than design and feautures, like a little brother of the iPhone 4. This means that the soon to be iPhone 5 will still have its market, the ones who always want to have the latest gadget available.
That is precisely why I assume a cheaper and smaller iPhone would hit the market in a good light. Apple would have better chances to reach low-end markets that didn't reach before. The iPod nano is a good example of how successful a less expensive product can be and still, keeping the quality characteristics Apple develops and offers to its consumers.
One point that comes to my mind is, suppose if Mini iphone turns out to be a big hit where people get attracted towards the innovative design aand features.
This in turn should not become a threat to iPhone.
"Reports say this new mini-iPhone would be targeted at Europe and some developing markets where Nokia's phones and Google’s Android mobile phones have a good share of the market pie".
Am on the side of Apple dominating the world of smartphones. Apple already unique features - quality and rich in graphics are verily acknowledged by the larger percentage of consumer market in some developing and emerging markets not only the fat wallet people. High price has been the apparent reason why up to 70% of smartphone users in developing market shirk away from iphone series.
For me, with mini-iphone planning to roll into markets surely many phone users will soon belong to people who have been living on the edge with Apple products.
International regulations should prompt the supply chain to reconsider product design and to develop a competitive strategy for the benefit of the planet.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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