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Apple's iPhone 5C, a Detonator in Global Smartphone Market

1. Cover Graphic - Apple's iPhone 5C, a Detonator in Global Smartphone Market
The Korean Press that ardently promotes LG and Samsung is anticipating the massive worldwide affect that Apple's iPhone 5C will have on the market when it's released next week. They believe it will be explosive, a real detonator in the global smartphone market. They deeply fear the ripple effect that will take place in the market and the incredible pricing pressure this will put on all of Apple's competitors.

The Korea Times reports that "Apple's middle to low-priced iPhone to be released on the 10th has risen to the surface as a detonator in the global smartphone market. In line with an upward trend of the popular model smartphone market, the new iPhone launch is forecast to alter the market share structure. Not only Samsung Electronics and LG Electronics, but also other manufacturers targeting low to medium-priced market will be under the influence."


As the hysteria mounted, the Korea Times added that "Another favorable factor is that Apple decided to cooperate with China Mobile, the world's largest mobile common carrier with 740 million subscribers. Apple will also enter into a cooperative relationship with NTT DoCoMo, the largest mobile common carrier in Japan." So it's not just the iPhone 5C that they fear, but Apple's powerful new distribution channels. The combination of the two will overwhelm their competitors like a Tsunami.


In a second report today, The Korea Times quotes Morgan Stanley analyst Katy Huberty as saying that, "if iPhone 5C is available from China Mobile, Apple may be catapulted to the No. 1 position in the Chinese market. She predicted that Apple's share might rise to 25%, and Samsung Electronics would see its market share drop all the way down to 10%. Apple's market share in Q2 was 4.8%, and that of Samsung Electronics was 17.6%." Analysts like Huberty see a sea change about to occur.


The report added an interesting factoid: "Recently expectations are high for iPhone 5C in the Chinese market. One out of three Chinese said they would buy iPhone from China Mobile." This is a nightmare scenario for Samsung who currently holds a commanding lead over Apple in China. If the forecasts pan out, then it's likely that this is just the beginning of a new phase in the smartphone wars. Can you say "payback time?" Oh ya!


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I don't see the "low cost" iPhone being very low in price. If it's replacing the 4S and 5. At the cheapest, I see this being no less than $499 retail. It would be nice if Apple proves me wrong next week.

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