Which Smartphone Could Rise on this News? – Apple Inc. (AAPL), Google Inc (GOOG), Nokia Corporation (ADR) (NOK)

Page 1 of 2

In the last couple of years, the smartphone industry has changed its dynamics so fast that a number of major players almost became irrelevant. Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Ltd (NASDAQ:BBRY) are both trying to reenter the smartphone market with more capable hardware and far more appealing operating systems. Nokia has partnered with Microsoft Corporation (NASDAQ:MSFT) to launch the amazing Lumia series of phones, and Blackberry has overhauled its outdated OS and launched the BB10. The initial response to both efforts has been good, but the market is still waiting for solid sales data before it considers these efforts successes. These two companies face competition from Apple Inc. (NASDAQ:AAPL), as well as Google Inc (NASDAQ:GOOG)’s Android. Android is the largest OS in the world, and is also the fasting growing smartphone operating system. The only way BlackBerry and Nokia can turnaround is if they can find cracks in the Android’s dominance.

Apple Inc. (NASDAQ:AAPL)

Android

Apple Inc. (NASDAQ:AAPL)’s iOS is restricted to only Apple Inc. (NASDAQ:AAPL) hardware, but Google Inc (NASDAQ:GOOG) freely lends its Android to manufacturers. This has allowed the small unknown smartphone brands of yesterday to develop and build a huge brand following based on the Android ecosystem and software. The fan base of Apple Inc. (NASDAQ:AAPL) is pretty strong, and it is difficult to turn an Apple Inc. (NASDAQ:AAPL) user onto a new brand. Therefore, the comeback efforts of Nokia and BlackBerry primarily hinge on the willingness of consumers to give up on Android.

Chinse growth

China is an economic superpower and has one of the most lucrative consumer markets in the world. Due to its large population and low technology dispersion, China remains one of the biggest targets for smartphone growth. According to reports, the Chinese smartphone industry might become double the U.S. industry’s size in only a couple of years’ time. The total number of smartphones in China could reach a mammoth 500 million by the year’s end. These statistics make China the biggest and the most attractive smartphone market in the world.

The Chinese market can be classified as a value smartphone market. There is a growing demand for high-end devices, but there is still a higher growth rate in value devices. This is the very reason that Apple Inc. (NASDAQ:AAPL) has not been able to dominate the Chinese market. The Apple Inc. (NASDAQ:AAPL) model of selling iPhones relies heavily on subsidies from carriers, and this lack of carrier support has been a primary reason behind Apple Inc. (NASDAQ:AAPL)’s slow growth rate in China. Where the iPhone has suffered, much cheaper Android devices have taken off: the Android growth rate in China is almost twice the global Android growth.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!