On September 9, Apple Inc. (NASDAQ:AAPL) will take the wraps off its much-anticipated iPhone 6. Cupertino’s market share has been shrinking for the past several years as Android vendors, especially Samsung, capitalized on consumers’ preference for large screen devices. But Apple has put together the right ingredients in the iPhone 6 that could sap the advantages of Samsung’s flagship Galaxy smartphones, says Bloomberg.
iPhone 6 to increase competition in large screen segment
The iPhone 6 will come with 4.7-inch and 5.5-inch display sizes. Apple will reveal everything about the new phone, along with the iWatch, next week. The iPhone 6 could be a nightmare for Samsung, which is already struggling with falling sales and profit margins. Apple’s new device will give tough competition to Samsung’s large screen devices.
Consumers’ appetite for the big screen has been insatiable, and Samsung has been the biggest beneficiary. Research firm IDC expects sales of smartphones with 4.5-inch or larger screen to rise 44% this year. Both variants of Apple’s iPhone 6 will have bigger than 4.5-inch displays. What’s more, the iPhone maker has reportedly inked deals with MasterCard, Visa and American Express to launch its mobile payments platform.
Mobile payment platform with iPhone 6 will increase customer stickiness
The iPhone 6 will have a wireless chip that will securely transmit data to a store reader. Customers can use their smartphones rather than debit cards, credit card or cash to pay for goods in brick-and-mortar stores. Apple already has credit card details of more than 800 million customers who have purchased items through iTunes. The payments platform will increase stickiness and create a strong barrier for customers to exit Apple’s ecosystem.
Apple is gaining traction in the enterprise market. The company recently signed a deal with International Business Machines Corp. (NYSE:IBM) to push further into the corporate market. Apple CEO Tim Cook said earlier this year that the company’s focus on simplicity has proved good enough to get the iPhones and iPads into more than 90% of the world’s largest companies. In contrast, Samsung has had a hard time winning over the enterprise customers. Samsung’s problem is mainly tied to Android. Only 20% of Android users run the latest version of the OS, so companies are forced to create different versions of their apps, which increases vulnerability to cyber attacks.
iPhone 6 will put Samsung back on its heels
App developers are crazy for Apple. They have developed more than 1.2 million apps and have earned well over $20 billion from the App Store. The Cupertino-based company hasn’t launched a new product since the release of iPad in 2010. Developers are eagerly waiting for new Apple products, the iPhone 6 and iWatch, to code for.
What’s more, the iPhone 6 will have a home automation app called HomeKit and health & fitness tracking app called HealthKit. Piper Jaffray analyst Gene Munster said in a research note that if Apple comes up with unique, great new products, it will “put Samsung back on its heels.”
Apple shares inched up 0.19% to $103.50 in pre-market trading Wednesday.