There is no denying the fact that Apple Inc. (NASDAQ:AAPL) now enjoys an exceptional demand all over the world for its new iPhone 6 and iPhone 6 Plus. The new dominant iPhone market for Apple is China after the smartphone making company penetrated through the barriers put on by the Chinese government, on the entry of western companies, by signing deals with UnionPay and China Mobile. The US is not so far behind as well, as the company still dominates the market in terms of smartphone sales figures.
But analysts wonder whether Apple Inc. can maintain its demand for iPhone in the long run, as the world gets newer and much cheaper alternatives. With companies such as OnePlus making their way into the market of smartphones with excellent, state-of-the-art technological masterpieces, analysts predict that growing, or even maintaining, its market share in the US and the rest of the world would become very challenging for the company.
According to analysts, the US market won’t be the first one to experience the imminent shift in iPhone demand figures. The reason behind this is the higher average income of the US consumers compared to people living in the rest of the world. Because people in the US are able to afford the expensive iPhone smartphone so they don’t look towards an alternative.
However, for people living in other countries of the world, where the average income level is far below that of the US, cheaper alternatives to the Apple iPhone are highly attractive, especially when they come from credible companies such as Samsung and Google.
But that has always been the case in countries all over the world except the US and China. The iPhone has seldom been the dominant smartphone in majority world markets, with consumers preferring cheaper, locally manufactured smartphone brands. Hence, according to experts, if demand for Apple’s smartphone falls in these markets, it may not be due to the iPhone itself, but rather the level of income the average consumer enjoys and wishes to spare on the purchase of a smartphone.
Truth is, the world is slowly switching over to Apple Inc. (NASDAQ:AAPL) devices not because it is a status symbol, but because, according to statistics, consumers find Apple’s iPhone more functionally sound and easier to use than its biggest competitor, any phone that runs on Android OS. Last quarter, Apple sold over 74.5 million iPhones all over the world, which is the highest selling figure for the company in any given quarter in its history.
And this growth seems sustained, contrary to analyst predictions, according to some experts viewing demand for smartphones from a taste perspective. According to them, consumer preference is the dominant factor in the industry, and any smartphone brand that offers to consumers exactly what they want will enjoy significantly higher demand compared to competitors.
Shares of Apple Inc. have been on the rise the world over since Q4 2014. In China, share value increased by 21.5% in December, compared to 18.1% the month before. In Japan, increase was 60.2% compared to 53.8%. In France, 23% compared to 20.8%. And in Spain, 12.9% compared to 9.7% a month before.
