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This may be a sign of how iPhone demand is faring amongst the competition

The latest iPhone may not be the rockstar Apple thought it would be. The Cupertino, California-based company slashed its orders for iPhone 5 screens by about 50 percent for the first quarter of 2013, and cut orders for other iPhone components as well.

This may be a sign of how iPhone demand is faring amongst the competition. Rival hardware makers like Samsung, whose devices are coupled with Google's Android operating system, have stolen much of the smartphone market share in the U.S.

For Q3 2012, Android was the No. 1 mobile operating system with a market share of 72.4 percent (compared to 52.5 percent in Q3 2011). Apple's iOS followed far behind at 13.9 percent (compared to 15 percent in Q3 2011).

As far as hardware goes, Samsung led the Q3 2012 market share at 22.9 percent (compared to 18.7 percent in Q3 2011) and Apple sat in third place at 5.5 percent (compared to 3.9 percent in Q3 2011).

Apple recently slipped behind in China's smartphone market as well. Apple, which previously held the No. 4 spot in the Chinese mobile phone market, slipped to No. 6 in Q3 2012 due to its low number of shipments, according to research firm IDC. Out of China's 60 million mobile phone shipments in Q3, Apple's iPhone accounted for less than 10 percent.

Apple's iPhone 5 was released in September 2012 with new features like a 4-inch screen and 4G LTE connectivity. It's available in either black or white, and is priced at $199 for the 16GB model, $299 for the 32GB model, and $399 for the 64GB model with two-year contracts.

Sources: CNET, The Wall Street Journal



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RE: Wow... This is real.
By retrospooty on 1/14/2013 9:52:25 AM , Rating: 5
Yup... What we are dealing with is Zeitgeist. In 2007 the iPhone came out and it was easily better than anything else out. It was a market changer... But even 3 years later in 2010 Blackberry was still growing, because of its own Zeitgeist. It was clearly bested in form and function, but still growing it's sales. Remember the term "Crackberry"? It took 4 years for that to wane and the majority of people to realize that Blackberry was years behind iPhone and Android. Now people are starting to realize that the iPhone is behind. It will be able to coast for a few more years, but at some point Apple needs to step it up to catch up with what everyone else is doing.


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