Apple seen to fall due to smartphone price lowering

By IVCPOST Staff Reporter

Jul 23, 2013 09:50 AM EDT

Smartphones, previously considered the next step in the advancement of the tech industry, have been elevated from unnecessary gadget to necessary commodity. According to a report by Bloomberg, phones connected to the world wide web comprised almost US$300 billion of the industry's revenue last year alone.

Almost one billion people use smartphones, and more than half of them are users from the United States and in first world countries. Emerging markets like China and India still have high demand for smartphones, at a much lower price.

Smartphones were priced at US$450 on average during its initial selling phase. Now, the price dropped to US$375 on average, according to an estimation by the International Data Corporation. This drop isn't merely due to the usual price decay. According to analysts, the highly profitable emerging markets which clamor for low budget smartphones impacted the fall of price.

Along with that, the drop is likely to put a big dent on big name companies such as Apple and Samsung Electronics. Analysts said that far rivals Nokia and BlackBerry could have a much more difficult time reviving dismal sales.

On the other end of the spectrum, Huawei Technologies benefited. Huawei and Lenovo, both companies specializing in low-end technology, are set to do well in this recent drop of prices, analysts said.

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