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More proof, if proof were needed, that Apple needs a low cost iPhone to get its smartphone momentum mojo back: Cupertino’s share of the global smartphone market fell to its lowest for three years in Q2, according to Strategy Analytics, with just 31.2 million iPhones shipped in the quarter and Apple’s second place ranking declining to a 14% market share – this despite the overall smartphone market growing 47% annually to reach a record 230 million units shipped.

“The current iPhone portfolio is under-performing and Apple is at risk of being trapped in a pincer movement between rival 3-inch Android models at the low-end and 5-inch Android models at the high-end,” said Neil Mawston, Executive Director at Strategy Analytics, in a statement.

Mawston told TechCrunch it’s not just a low cost iPhone that Apple needs to return to growth, although he agrees that is a requirement for Apple to drive extra volume. Cupertino’s top priority should be a new type of flagship to compete with Samsung’s phablets, he said.

“Apple’s first priority should be a premium-tier phablet with a 5-inch screen because that is where the largest new revenue pool is located,” he said via email. “Apple is losing profit share to Samsung partly because of a lack of presence in the phablet segment. Apple’s second priority should be a lower-cost iPhone to win back some of the customers it is losing to cheaper Android models in Asia, Africa and Latin America.”

“A 5-inch iPhone would generate extra value for Apple, while a cheaper iPhone would deliver extra volume,” he added.

Overall, the analyst said smartphone market growth is being driven by demand for 4G handsets in developed markets such as the U.S. and 3G devices in emerging markets such as India. Asian mobile makers, who predominately use Google’s Android OS, are now clearly dominating the surging smartphone market, with Samsung still in kingpin position – shipping 76 million devices in Q2 to capture one-third of all smartphone volumes worldwide in the quarter – and LG, ZTE and Huawei in third, fourth and fifth place respectively.

The analyst described LG as a “star performer”, with its global shipments doubling year-over-year to hit 12.1 million units in Q2 to take a 5% share. “The popular Optimus and Nexus models have been the main drivers of LG’s success. If LG can expand its retail presence and marketing in major countries such as the US or China, LG could quietly start to challenge Apple for second position,” Analyst Linda Sui added in a statement.

Chinese mobile maker ZTE also took a 5% share in the quarter, shipping a record 11.5 million smartphones to take fourth place for the first time, while Huawei shipped 11.1 million handsets to also grab 5% and take fifth.

iPad Air

If you had to guess how Apple will build a new iPad model based on the current iPad Air, surely a new processor would be part of your thoughts. That’s what Apple intends to do, says one analyst with a relatively good track record on figuring out Apple’s next product moves. The iPad Air 2 will use a new A8 chip and include the Touch ID fingerprint reader, according to KGI analyst Ming-Chi Kuo. Apple Insider took a peek at Kuo’s most recent research note for Apple, which includes several educated guesses. Kuo expects a late third-quarter launch for the iPad Air 2 and thinks that TSMC will build the new A8 chip for Apple, which would take business away from Samsung. TSMC is reportedly already building the yet-unannounced A8 chips for Apple, which makes sense from a timing perspective: Apple will likely need millions of the chips for multiple products in the next few months, including the next iPhone and iPad mini with retina display.

Read the full story at Giga OM.

Forrester has researched that Apple will be selling $39 billion in iPads and Macs through the year 2014.
The latest report of this firm said that Apple will sale $11 billion of iPad and $7 billion of Macs in the corporate market, this year. Moreover, they will sale $13 billion of iPads and $8 billion in Macs.
Forrester Analyst- Mr. Andrew Bartels has mentioned three reasons of Apple’s success in the corporate market. These are:
An excellent product which employees want to use and they feel proud when their firm gives them.

  1. iPad turns to the first and best class tablet
  2. Apple is corporate sales organisation and has been quite responsive to the demands and offer competitive prices.

Gartner has presented his magical equation for the mobile market as:

Apple is developing a workflow and reportedly said that in October, Apple’s iWork Suite will be integrating with VMware Horizon. This suite will create virtual environment on phone to divide the work from personal data.

Also Android mobile market is growing and showing the industry how it will take shape.

In 2012, the global corporate spending for the Wintel tablets and PCS has been gone down by 4% and it will also be flat in 2013. And this is because the old window desktop PCs will be slowly replaced by windows machines- the Tablets, Laptops and other devices. Lastly, it is forecasted that in 2014, the demand for the PC and windows 8 devices will enjoy 8% increase and this growth will be double digital lesser than the growth of Apple, Linux and Android products.

The growth rate enjoyed by Android and Linux devices is due to the Android tablets- Samsung is leader. They are making their way to the corporate markets and having low base yet high growth rate.

In the nutshell, Apple is continuously forcing fundamentals and changing the way people live and work. In this regards, upcoming challenge is to separate the corporate data from personal data over devices, whether it is Android smartphone or iPad.

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