Apple Inc, named most valuable brand and most innovative company in 2013, is predicted to drop to third place in market share for smart phones in 2015. This is according to a fearless forecast by Seeking Alpha's Adrian McCarroll who based his statements on current smart phone trends.
He cited a number of reasons why Apple Inc may slide to third place in 2015. According to the report, smart phone growth is concentrated on low-end handsets in the developing world. Western markets for smart phones have become saturated with little opportunity for growth.
In the previous months, there were signs that indicated Apple Inc will target the low-end smart phone market. Many people expected a cheaper iPhone but Apple revealed the iPhone 5C, a repackaged iPhone 5 in a more colorful case. It's not exactly the budget iPhone that rumours were talking about but the iPhone 5C is cheaper than the premium iPhone 5S.
It has become clear to analysts that Apple Inc may not go after the low-end smart phone market since the company is more concerned with bigger and more profitable margins.
Windows Phone and Android takeover
With Apple Inc out of the picture, the low-end smart phone market will be left to Android smart phone manufacturers like Samsung and the Windows Phone.
In the low-end market, Nokia has benefitted from its Lumia 520 which has become a hit among budget-conscious consumers in developing markets. The Finland-based company recently acquired by Microsoft is already seeing signs that its Lumia 625 will be selling well the low-end market.
Nokia is set to launch the rumoured Lumia 520 on Oct. 22, the same day Apple Inc is expected to revealed the rumoured iPad 5, iPad Mini with Retina display including a new Macbook Pro and possibly a budget iMac.
Analysts expect Nokia to release more budget smart phones in 2014 with Microsoft leading the way to take advantage of this opportunity. According to AdDuplex, Nokia's Lumia 520 is the most popular Windows Phone in the world with a 32.8 per cent market share followed by Lumia 920 and Lumia 620 with 12.9 per cent each. Nokia now owns nearly 90 per cent of the Windows Phone market share.
Android's market share has also grown with Samsung phablets leading the way.The Samsung Galaxy series, especially those targeted in the low-end market have been welcomed by consumers who want bigger screens and cheaply priced smart phones.
If Apple Inc continues to ignore the low-end market for smart phones, Microsoft's Windows Phone and Google's Android might just steal its thunder in the coming years.