iPhone 5 isn’t the door crasher Apple imagined it would be. Apple’s supply chain reports smaller orders than expected. iPhone 5 screens’ order was slashed to half.
There are several reasons for this. iOS popularity is dropping given android takeover. Popularity of Samsung handsets like Galaxy SIII and Galaxy Note II. Apple’s weak variety and premium costs.
As it became apparent at Apple iPhone 5 launch in Asia, Apple is losing China and touch with reality. Asian market is huge, but variety is essential. Studies show that over 40 percent of people in China pay $200 or less for their smartphones. Samsung has a wide variety of phones and other less known makers like ZTE, Huawei and Yulong are emerging. Xiaomi MiOne MI2 smartphone has comparable specs to iPhone 5 and sells for half price. Starting just 3 years ago Xiaomi Technology is now worth more than RIM. Apple’s smartphone market share dipped to 6th from 2nd a year earlier.
Samsung’s sales are skyrocketing. Samsung sales stats in Q4 2012 show profit increase of 87 percent. Samsung sold about 62 million Galaxy smartphones whereas Apple did 45 million iPhones in last quarter of 2012. Samsung understands the need for mid-range and wide variety of smartphones.
What’s helped Samsung to become the largest smartphone maker of course is Google’s ever so popular Android OS, which is now featured on some 72 percent of all smartphones.
Rumors are pointing to Apple reflecting the current developments and overwhelming demand for mid range smartphones and designing their own budget iPhone. The iPhone is to have plastic chassis, or partly plastic with internals being seen.
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