Affected by the financial crisis in Europe, various countries encounter economic recession and it has reflected at the people''s daily consumption custom. For example, iPhone was so faddish in Europe, but now users prefer the smartphones powered by Android than iPhone for they are cheaper. In the past few months, iPhone''s market shares in European countries, like France, Germany, Italy, Spain, etc. declined successively.
Presently, Forbes estimates Apple''s stock price to be USD 503, 25% higher than the market price.
Apple down while Android up
The report shows, Apple''s market share in Germany smartphone market decreased to 20% from 29%. The market shares in USA and UK of iPhone series have been increased effectively as iPhone 4Swas launched. However, Apple should seriously concern the problem that market share in European market has declined. The recent micro environment may bring Apple stern challenges because the economic recession is likely to happen again. Meanwhile, Android keeps swift and violent development and the market share in Germany reached 61% as Samsung Galaxy II was released.
How will Apple deal with it?
Apple insists high price and high quality all along and in this case, it expects to enhance the brand value and gain more profit. However, analysts said, Apple UK has adjusted the price flexibly, especially for the European area of weak demand.
Although this means Apple has to give up the big profit, it is helpful for the company to avoid the sharp drop of market share.
Another measure that Apple can take is to launch a version of cheaper iPhone. Before iPhone 4S was announced, there were rumors saying Apple would release two versions of iPhone. Of the two rumored phones, one was said to be suitable for the emerging market that feels susceptive to the price.
source from http://www.hqew.net/events/news-article/2117.html
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