Samsung is poised to extend its lead over Apple (NASDAQ:
) in 2013. Neil Mawston, the executive director at Strategy
that his firm expects Samsung to "slightly extend its lead over
Apple this year because of its larger multitier product
"Samsung plays in more segments and this should enable it to
capture more volume than Apple (assuming Apple does not launch an
iPhone Mini this year)," he added.
Mawston does not believe that Apple will launch the illusive
iPhone Mini this year. This is primarily due to sales of the iPhone
5, which have been high enough to sustain Apple until the iPhone 6
or iPhone 5S is released.
Even without a smaller iPhone on the 2013 schedule, Strategy
Analytics believes that Apple will raise its global market share
from 20 to 21 percent. During the holidays, Apple temporarily
number-one smartphone manufacturer
in America when it obtained 53 percent of the domestic market.
Strategy Analytics also estimates that global smartphone
shipments will rise by 27 percent this year, pushing the total to
875 million smartphones.
While Apple has been known to build smaller and sleeker products
without lowering the price (as evidenced by the first few
iterations of the MacBook Air), most analysts believe that the
iPhone Mini will be a cheaper smartphone.
"We think Apple will have to launch an iPhone Mini at some point
over the next three years to address the hundreds of millions of
prepaid users worldwide that cannot afford the current iPhone,"
Mawston told Reuters. "The iPhone 5 is growing fast and profitably
right now, so there is little incentive for Apple to launch an
iPhone Mini this year."
Instead, Apple will save the iPhone Mini for 2014 or a later
date when the company is "forced to discover fresh growth streams,"
Apple's leading "Mini" device, the iPad Mini, could provide some
clues to the company's roadmap. In pricing the iPad Mini, Apple
could have charged $249 to ensure it remained competitive with
) Nexus 7 and Amazon's (NASDAQ:
) Kindle Fire. Instead, Apple decided to charge $329 to maintain
the device's premium status without diminishing the value of the
iPad 2 (which starts at $399) and the iPad 4 (which starts at
That strategy paid off. Apple shipped and sold
millions of iPad Mini units
If Apple is to employ a similar strategy with the iPhone Mini,
it should be 30 percent cheaper than the full-size iPhone (the iPad
Mini's $329 MSRP is roughly 34 percent cheaper than the iPad 4).
Thus, the iPhone Mini should retail for $139 with a contract or
This would be an appealing price to American consumers who are
persuaded by the device's smaller design. This may not, however, be
enough to reach consumers with lower incomes. With a 30 percent
price difference, the iPhone Mini would still be one very expensive
Apple may not have to worry about that, however. The iPad is one
of the most expensive tablets available, especially now that Google
and Amazon have entered the market. Even so, it has become the
(c) 2013 Benzinga.com. Benzinga does not provide investment advice.
All rights reserved.
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