Apple owns the premium segment of the smartphone market, but Android has 75% of the unit sales in the market. Unless Apple comes out with a lower priced smartphone to compete with Android it will be reduced to a niche player in the market. Software and hardware vendors tend to build products for the dominant market share holder in a market. The value they add to the smartphone owner drives sales. Apple will have to decide between lower margins and more unit sales or retaining ownership of the premium market.
By the way, the unit sales growth in this market in China and India is unbelievable. Unit sales in China have grown from 50 million units to 500 million over two years. Most of the growth has come from lower priced Android smartphones. Android is also getting most of the sales in India.
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