Tomahawk, WI 11/19/2013 (BasicsMedia) – Apple Inc. (NASDAQ:AAPL) together with Samsung Electronics control the bigger smartphone market share. Owing to this control, the two companies mint billions of dollars annually in revenue. AAPL’s smartphones are known for several wonderful features and specs which warrant their high cost compared to other devices on the market. But the question is whether AAPL is in for some market disappointments.

That AALP is a technology leader that has always surprised the world with innovative products cannot be forgotten. When phones just made calls and send text, AAPL thought they could do much more and made them do just that. Today smartphones have become mobile offices and even several executives in this digital era are said to be running their businesses from their smartphones. The truth about running a company from the phone is however debatable, what is not debatable is that the ground has changed considerably in terms of revenue and profits for the giant smartphone makers such as Apple Inc. (NASDAQ:AAPL).

Smartphone kingpin AAPL is facing growing competition

The reason smartphone kingpins like AAPL and Samsung are not quite sure of their future in this industry has everything to do with growing competition in smartphone and tablets markets which are two key revenue sources for the Cupertino-based AAPL. This competition is twofold. It is that many players have entered the smartphone market and they are eating AAPL’s lunch significantly. Another reason is that the cost of smartphones is declining as other manufacturers use price bait to attract buyers while instead Apple Inc. (NASDAQ:AAPL) sells its devices at a price higher than the competition.

So does the $468.90 billion market capped company have any solutions to these problems? First, AAPL doesn’t do well when it offers to sell its smartphones cheaply. Look at the low-cost iPhone 5C whose uptake has been slow compared to the more expensive iPhone 5S. Appealing to the lower market is a game that Apple Inc. (NASDAQ:AAPL) long lost. It means that the AAPL can whither the market storm by cutting on its production cost so that it can enjoy a higher profit margin in the market. This means that even within its present demand, it could still make good profits and please investors.

As for the issue of many players in the market, AAPL has really nothing to do about this rather than hope that the market will continue to trust its brand so that it can make more sales. AAPL is not known to be of the habit of buying out competitors, but this could help the company trim competition in the market.

AAPL needs to boost presence in emerging markets

Emerging markets are increasingly becoming important for multinational companies from carmakers to networking companies to communications devices makers like AAPL. Making inroads in emerging markets requires strategy and sometimes hefty capital investment and AAPL has got both.

Apple Inc. (NASDAQ:AAPL) is already a diversified company being in smartphone business, tablets, PC music streaming and software. It thus means that boosting the performance of these other units can help offset the damage in smartphone revenue as competition turns red-hot.

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