Apple Inc. (AAPL) posted a surprisingly good second quarter 2013 earnings report on July 23, and one of the brightest spots was iPhone sales. The company’s flagship product sold 5 million more units than analysts expected, and quelled speculation that Apple was losing its grip on the smartphone market. Building on this success, all of Apple’s efforts are now focused on growing mobile.
On Sept. 10 Apple is expected to unveil not one, but two new products at a special event: the hotly anticipated iPhone 5S, and a more affordable model, the iPhone 5C. The tech giant is also expected to begin a phone trade-in program to keep customers from fleeing to other phone makers, and stave off dreaded "churn," insider speak for costly customer turnover.
Despite the robust Q2 iPhone sales, Apple‘s market share has been slipping. On July 26 analytic firm Strategy Analytics declared Apple was no longer the world’s most profitable smartphone maker. The new king of smartphones, Samsung, has been rapidly grabbing market share with their Samsung Galaxy and their growing presence in Asia. Apple has, so far, failed to significantly break into the Chinese market, as they lack a good carrier and a cheap phone attractive to consuemrs in developing economies.
If the deal with China Mobile closes, this would be a huge boon for Apple, and explain the company’s rush to release a cheaper phone for not just domestic customers, but the massive Chinese market as well.
Apple is down 2.34 percent on the day to hit $491.19.
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