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Computer industry

Apple's iPhone 4S Falls Short, Opening Door for Android Rivals

Strategic Insights

— 2 min read

Asian smartphone makers, led by Samsung, HTC, and LG Electronics, are poised to take advantage of Apple's rare stumble with the new iPhone 4S, which failed to impress fans and investors. The sales of the iPhone 4S are expected to be affected by the lack of significant design changes, leading to a decline in market share for Apple. This presents an opportunity for Android-based phones to capitalize on the disappointment and gain market share.

Key Takeaways:

  • Apple's new iPhone 4S failed to excite fans and investors, leading to a decline in market share for the company.
  • Samsung, HTC, and LG Electronics, which make phones using Google's Android operating system, saw their shares rise after the announcement of the iPhone 4S.
  • The iPhone 4S is identical in form to the previous model, which may deter consumers from upgrading to the latest device.
  • Analysts believe that the new iPhone 4S may struggle to compete with Android-based phones, which offer more advanced features and better specs.
  • Apple's failure to update the design of the iPhone may lead to a decline in sales, as consumers are not willing to upgrade to a device that looks virtually identical to the previous model.
  • The sales of the iPhone 4S are expected to be boosted by the cheaper price point, which may lead to an increase in sales among users who are looking to upgrade from older iPhone models.
  • The iPhone 4S is expected to have a limited appeal to users who are already using the iPhone 3GS, as it is only a minor upgrade to the previous model.
  • The global market share of Apple's iPhones has dropped to 18.4% in the second quarter, while Samsung's market share has risen to 17.8%, according to IHS iSuppli.
  • The global market has seen a 9.1% increase in iPhone shipments in the second quarter, while Nokia's shipments have plummeted by more than 30% during the same period.
  • The iPhone 4S will be priced at $199 in the United States, with pre-orders starting on October 7.
  • Apple has cut the price of the older iPhone 4 to $99 and will offer the even older "3GS" model for free to customers who sign a long-term contract.

Sources:

  • Article - I Media LLC 2011 (also provided by Syndigate.info an Albawaba.com company)
  • IHS iSuppli (for market share and shipment data)
  • Gartner analyst KC Lu in Taipei
  • Kim Young-chan, an analyst at Shinhan Investment Corp in Seoul
  • Ming-chi Kuo, analyst at Concords Securities in Taipei
  • Mike Fang, a fund manager of Paradigm Asset Management
  • KDDI (Japan's second-largest mobile carrier)

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