Samsung is the apple of American smartphone buyers’ eyes. The winner in the U.S. smartphone market is no longer Apple.
In May, A survey conclusion is that Samsung’s Galaxy S4, Galaxy Note II and Galaxy S III sold more combined in the U.S. than did Apple’s iPhone.
For example, the results of this report suggest that Samsung is good at flooding the market with products in between Apple’s predictable new product introductions each fall.
Apple has predictably introduced a real upgrade prior to each holiday shopping season in the past. But the smartphone market is maturing and if Apple hopes to generate a big sales increase that will enable it to recover market leadership, it will need to go after a big market in which it currently does not compete.
Because the growth opportunities in smartphones are for selling lower-priced models in emerging markets like China and India. To be sure, Apple could sell stripped down versions of the iPhone at lower prices.
Morgan Stanley’s Kate Huberty believes that: Apple will do just that. But a lower price means lower margins.
Huberty:
“Believes that at the low-end, for example, the difference between charging $399 and $449”would be worth as much as $2 billion in profit for Apple.”
But selling a low priced product is not what made Apple great. Apple’s greatness came from making products that were better designed than those of competitors and selling those products with great content and apps through superior retailing.
If Apple ever gets that winning formula back, then it will be able to beat Samsung. If not, Samsung will continue to make growth in America’s smartphone market.
Apple and Samsung are locked in a price war in Asia, with each company handing out discounts on its smartphones in a bid to draw customers in one of the world's largest developing smartphone markets.
According to the Wall Street Journal:
The pricing struggle between the two companies are said to have kicked off with Apple's