Smartphone market is actually being raced between two horses–Apple
and Samsung. Undoubtedly, Samsung is now the world’s biggest Smartphone
vendor, expecting to post a record-breaking fourth quarter earnings on January 25 this month. The company is expected to post an unaudited operating profit of about $8.3 billion
on a revenue of $53.6 billion. Besides, the company is expected to ship
more than 60 million Smartphones in the quarter ending December; now,
it’s selling 500 handsets in every minute.
On the other side, Apple’s performance (since the last quarter) has
not been quite promising for investors–they still believe that the
company couldn’t maintain its long growth haul in the future. However,
the company outstandingly performed in the last quarter. In fact, the
quarter (Q4 2012) would be the most profitable quarter for the world’s
biggest technology company in terms of capitalization.
Samsung, the only Android vendor that has managed to climb at zenith
position, continues to steamroll over its rivals. It has become a major
threat even for Apple, a premium product manufacturer. Samsung has
planned to mount up its Smartphone shipments to 390 million units this year, while Apple is expected to ship 194 million units.
Apple iPhone Mini With Price Tag of Under $150
It’s true; Apple is seriously considering about the launch of a low price iPhone - Apple iPhone Mini. The price range of iPhone Mini revealed by
Bloomberg
has really shocked to everyone. Would you expect the company like Apple
could launch an iPhone under $150? The firm (Bloomberg) has mentioned
that the retail price range of iPhone Mini would be anything between $99
to $149. Apple tends to sell iPhone 5 for more than $700 in emerging
markets.
How Much Profit Apple could Make From iPhone Mini ?
Previously, the cost of iPhone Mini was expected to be around
$250-$300. But as the cost of the device mentioned by Bloomberg, it’s
really tough for anyone to believe that Apple would sell the device
under $150. However, Apple could easily create an operating margin of
just 15%
on iPhone selling under $150 with touch screen and 1 GHz processor.
Considering to Nokia, the company is hardly making 10% of operating
margin on its latest and most desirable Smartphone—Asha—with price tag
of less than $150. Definitely, for making high profit margin, Apple will
have to move to resistive touch screen and 600 MHz processor, which
could be splinter for its iOS app market. But to provide a smooth
experience Apple could consider low-price capacitive screen also for
iPhone Mini.
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