Tomahawk, WI 12/18/2013 (BasicsMedia) – The fast-growing and lucrative smartphone and tablet market has helped Apple Inc. (NASDAQ:AAPL) to avoid the problem in the PC market. The company manufactures smartphone brands known as “iPhone” and tablets known as “iPads.” AAPL also offers software solutions through its own devices and third-party devices.

In a bid to diversify its business, AAPL also recently launched iTunes radio to go for the dollar in the ad-funded Internet radio streaming services. In just a matter of days 2 billion tunes had been streamed through the service.

Apple Inc. (NASDAQ:AAPL)’s iRadio is in direct competition with Pandora Media Inc, (NASDAQ:P)’s Internet radio service. Pandora is currently the leader in the Internet radio services. Instead of just concentrating in the U.S., AAPL is offering iRadio to the global audience and this is expected to help it add more subscribers and earn higher revenue through the platform.

At the moment AAPL’s Internet radio service is in its infant stage and more adjustments will be expected as it expands.

Currently Apple Inc. (NASDAQ:AAPL)’s main revenue source is the iPhone and iPad sales. Its bestselling products are iPhone 5C, iPhone 5S, iPad Air and iPad Mini. The last two products were launched last month and late October.

The company’s products appeal to the high-end market and this means that it is able to get away with buggy pricing of the items. Of late it has started appealing to the middle and lower markets especially through its low-cost iPhone 5C.

Market challenge

Apple Inc. (NASDAQ:AAPL) is increasingly facing challenge from cheap smartphone makers. The company’s sales have been declining in recent times more so in emerging markets of Asia, Middle East, Africa and Latin America where buying power is weaker compared to markets such as China, Europe and U.S. But even in China, the company is facing competition from homegrown smartphone manufacturers.

In order to improve its sales opportunity in China, AAPL recently sealed a deal with China Mobile for the offering of iPhones on the latter’s network. This deal will expose AAPL’s products to a market of more than 760 million people. This deal also makes it easy to acquire iPhones at subsidized rates which is expected to boost sales.

Competition from tech giants

Apple Inc. (NASDAQ:AAPL) has won a lot of market competitions to date. This can be seen in its latest deal with China Mobile as well as reports from Japan which show that it dominates the country’ smartphone and tablet markets. However, the entry of Google Inc. (NASDAQ:GOOG), Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc. (NASDAQ:AMZN) into hardware business by offering high-end smartphones and tablets at budget prices is complicating the picture for the Cupertino-based company.

These competitors have the money and technology to destabilize Apple Inc. (NASDAQ:AAPL). It remains to be seen how the company handles this competition and if it will be able to survive the onslaught. However, it is important noting that AAPL is a company that has many lives and like the proverbial phoenix, it can always rise from the ashes, just like it did when the declining PC market nearly extinguished it.

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