Apple Sounds Warning Bell for Smartphone Industry?

pygmalion05 —  August 27, 2012 — 2 Comments

The iPhone 4S, the most recent generation of the iPhone.Credit: Wikipedia.

Drivers are holding on to their cars longer than ever before, and consumers are doing the same for smartphones.

Part of this is due to people waiting for the next iPhone, but the other factor is the already high penetration rate, as in over 50 percent of Americans that have mobile phones own the “smart” variety. This makes the launch of the iPhone 5 (and all those apps) even more critical.

We all know Apple fans are anxiously awaiting the release of their latest model — the iPhone 4 is becoming ancient technology to the faithful Apple users.

According to a recent article from Reuters, the global smartphone industry is a lot more vulnerable to economic shocks these days than during the 2008-2009 financial crisis — if Apple’s weaker-than-expected most recent quarterly result is anything to go by.

Half of all consumers already own a smartphone in developed markets — and penetration rates are much lower in emerging markets, where cheaper phones costing less than $100 are hurting the profit margins of the smartphone giants.

Just look at those who are still using their dinosaur phones like the Envy 1 — lucky for them they could have an easier time joining the smartphone family. With Japanese brands such as LG and Samsung providing smartphones at a smaller cost, they have opened the market for people to get on the smartphone train (the 4G service provided with some of these phones doesn’t hurt either).

In this down economy, the smartphone industry has been able to take the world by storm, but with the market for new phones in a downward trend, what brands will provide the most advanced technology to survive? Only time will tell.

Check out the full Reuters article on the smartphone wars below:

Analysis: Apple Sounds Warning Bell for Smartphone Industry

2 responses to Apple Sounds Warning Bell for Smartphone Industry?

  1. 

    Honestly, it’s annoying that every year there’s a new model. I am not the throwaway type, I keep my phones for years so as not to be wasteful. I suppose one could always donate the older models to Cellphones for Soldiers, but my wallet can’t afford to be that generous. This thing cost me hundreds of dollars, I am not about to trade it in just for what I consider to be minor upgrades. I’m sure others feel the same, I wonder if that’s part of what’s “hurting” the industry. To be honest, I also have a hard time having any sympathy for them!

  2. 

    yes, part of what this article touches on is people’s growing unwillingness to upgrade every time — seems to be a part of the industry’s recent struggles, MM123!

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