According to a report compiled and published by Topeka Capital Markets, it has been noted that the worst time to launch a smartphone would be when Apple Inc. (NASDAQ:AAPL) plans to release its new iPhone 5.
This report comes amid splashy smartphone launches by leading industry big wigs. As we had reported on Tuesday, Nokia Corporation (NYSE:NOK) did launch its very own Lumia 920 today. This launch coincided with Google’s Motorola launch. Indeed September will be characterized by a lot of launches. Apple’s highly anticipated iPhone 5 will be launched next week, on September 12th, while HTC will launch its newest smartphone on September 19th.
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Despite the high number of launches, Topeka is not convinced that competition will brim. On the contrary, Topeka’s reports notes that HTC Corp (TPE:2498), Nokia Corporation (NYSE:NOK), and Motorola Mobility Holdings Inc (NYSE:MMI) may have made a huge mistake by releasing their smartphones at the same time as Apple’s iPhone 5. The iPhone not only has higher popularity throughout the global market, but it is also said to be the world’s most anticipated consumer electronic device.
To aggravate the already deplorable situation, HTC Corp (TPE:2498), Nokia Corporation (NYSE:NOK), and Motorola Mobility Holdings Inc (NYSE:MMI) will also have to battle for market share from Samsung Electronics Co., Ltd. (KRX:005930)’s already popular Galaxy S3. As such, the competition is reduced to a two horse race; Samsung Electronics Co., Ltd. (KRX:005930) and Apple Inc. (NASDAQ:AAPL).
Apple has a huge edge
Apart from the obvious advantage of an enormous market share, Apple has also been noted to have one peerless edge. Unlike other smartphones in the market, Apple Inc. (NASDAQ:AAPL) flaunts a vertically integrated digital grid.
What does this mean?
Apple’s software has been designed in a fashion that allows users to smoothly connect to other Apple devices. This means that a user can establish a seamless connection between, say, their iPhone and their iPad. This particular lineament sets some real daylight between Apple and its competitors. As such, any big screens, fancy wireless charging capabilities, and unprecedented features are not likely to steal the attention of loyal Apple customers.
Competitors’ lopsided fortunes
While the tech industry-in particular the smartphone niche-is swelling by the day, once belligerent players like Nokia Corporation (NYSE:NOK) and Research In Motion Limited (USA) (NASDAQ:RIMM) are stuck in the morass of their own mediocrity. Topeka’s report notes that Nokia Corporation (NYSE:NOK)’s market share dipped from 27.6 percent in the final quarter of 2010 to 6.6 percent in the second quarter of this financial year. Research In Motion Limited (USA) (NASDAQ:RIMM) has also shrunk indescribably and currently commands less than 5 percent of the market.
Apple Inc. (NASDAQ:AAPL) on the other hand has witnessed an increase in market share. It is only rivaled by Samsung Electronics Co., Ltd. (KRX:005930). Nonetheless, Topeka believes that Samsung’s fortunes could take a turn for the worse after its big patent case loss against Apple Inc. (NASDAQ:AAPL) last month.