apple inc

1) Apple’s decreased market share is mainly due to the loss of market share in emerging markets.

According to OppTrends.com, the number of people who own iPhones 52.3%in the U.S.; it’s higher than the 49.9% a year ago. Apple is a well-established smartphones manufacturer in developed markets such as the U.S.; however, these markets have been saturated in terms of smartphone ownership. Most of the new growth is generated from emerging markets, where smartphone ownership is not as widespread as it is in developed markets. People who seek to purchase new phone in emerging markets are price-sensitive, whereas Apple’s iPhone models are normally set at higher price due to their better quality and satisfying apps performances. Apple’s continues to target at high-end market, even when demand for lower-price devices accelerates in emerging markets, is the primary reason why it’s losing market share worldwidely.

2) Competitors offer a broader selection of designs and prices than Apple’s iPhone.

Competitors of Apple included HTC, LG, Blackberry, and the core competitor is Samsung. Each of them has different sizes, prices, and technologies on their products. First, the most significant drawback of Apple’s iPhone in the market is its screen size. Nowadays, most of the smartphones in the market have 5 inches or larger display screens; however, Apple remains producing 4 inches iPhone with unremarkable technologies innovation since 2012. Second, Apple’s high-end iPhone 5S has the second highest price in the market while iPhone 5C, with similar outlook design and outdated technologies, is only one hundred dollar cheaper. Compare to the highest pricing Samsung Galaxy Note Three and cheaper pricing Galaxy S5, they both have the newest technolog...

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...’s smartphones charge premium price by providing high quality products along with new innovative features. However, Apple failed to add new innovative features while introducing iPhone 5; this disappointed many customers. Even though the sales of iPhone 5 had a significant increase compare to previous iPhones, the global market share of smartphone operating system shows IOS was decreasing while Android was increasing sharply.

While Apple failed to fulfill customers’ expectation, it still charged for premium price. For instance, in 2013, the average iPhone off-contract selling price were $650, while average Android off-contract selling price were only $276. This huge pricing graph between iPhone and Android’s phone as well as the disappointment of Apple’s users became an enormous factor of opening up a wider market for its competitors, such as Samsung, HTC and LG.