Apple Doubling Down on iPhone

Jacob Harper |

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.

On July 30 Apple finally began talks with China’s largest carrier, China Mobile Ltd. ($CHL). The deal, worth $50 billion, is rumored to be nearing the final stages.

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.

(image of Apple HQ in Cupertino courtesy of Wikimedia Commons)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 174.96 1.82 1.05 25,588,925 Trade
CHL China Mobile Limited 50.59 0.22 0.44 339,595 Trade
DAHCY Dah Chong Hong Hl Uns/Adr n/a n/a n/a 0

Comments

Emerging Growth

GTX Corp

GTX Corp, along with its subsidiaries, is engaged in design, development, manufacturing, distribution and sales of products and services in the GPS and BLE wearable technology personal location and wandering…

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…