Apple Inc. (NASDAQ:AAPL) is poised to sell more iPhones in emerging markets where consumers usually opt for more affordable choices, analysts say. According to a report from Yahoo! Finance‘s Aaron Pressman, this expected development is in part driven by the growing number of middle class consumers in markets such as China, India, Indonesia, Malaysia, Russia and Vietnam.
This prediction comes as Apple Inc. (NASDAQ:AAPL) is expected to debut its newest smartphone, the iPhone 6, next month. According to recent estimates, the company is most likely debuting its iPhone 6 at an event on September 9. The Cupertino, California-based consumer electronics giant has traditionally launched its latest iPhone late in the third quarter of each year.
In the report, Ken Hyers, a wireless analyst at Strategy Analytics is quoted as saying that Apple Inc. (NASDAQ:AAPL) will see a steady growth in sales in emerging markets.
“Apple can honestly expect healthy future growth from emerging markets, even as that growth is outpaced by orders of magnitude by Android in those same markets,” Hyers predicted.
At the event on September 9, the company is not only expected to launch one version of the iPhone 6. If current rumors coming out of media organizations focused on the consumer electronics industry are to be believed, Apple will be launching a bigger-screened iPhone and possibly its very own smartwatch.
With regards to an iPhone with a bigger screen, Peter Richardson, research director at Counterpoint, is quoted saying that this device can help Apple Inc. (NASDAQ:AAPL) to snag market share from Samsung Electronics. The South Korean phone manufacturer leads in the market of “phablets” with its Galaxy Note range of devices. It has also been locked in a bitter and long-running legal war with the iPhone maker, a fight that only recently showed signs of dying down after raging on for over three years.
“Samsung has been the only credible competitor, but we’re seeing them stumbling before our eyes. That leaves the way wide open for Apple to continue to dominate that segment,” Richardson said regarding the market for bigger phones.
Richardson also pointed out that as an example, Vietnamese buyers are willing to spend amounts that are equal to two to three months of their salary in order to buy an Apple Inc. (NASDAQ:AAPL) smartphone because it is perceived to be the best.
Meanwhile, Aaron Pressman also noted that the iPhone-maker can adopt strategies to sell more in emerging markets such as letting customers pay in installments, focusing more on lower-end devices such as their previous iPhones and building deeper ties with carriers for subsidies.
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