An article from Moneyweb came across my newsfeed moments ago that left me in awe. Is this a paid advertisement for Apple? Or is the author just obtuse? In the article “6 Reasons Samsung Should Fear The iPhone 6“, well, just see for yourself.
Since 2010, Samsung’s share of the smartphone market has quadrupled to 31 percent, according to research firm IDC. Apple’s share has barely budged in that same period, ending 2013 at about 15 percent.
But Apple may finally have the right ingredients to reverse Samsung’s fortunes. On Sept. 9, Apple is set to unveil not only a new phone, which some pundits are calling the iPhone 6, but also details of a long-awaited smartwatch that will work in concert with the new phone. Bloomberg News has reported several of the features expected to be packed into the next iPhone, including larger screen sizes and a payments system allowing customers to use the device to make purchases in stores. Put all of these pieces together, and you get some potentially profound changes that could sap the advantages of Samsung’s hot-selling Galaxy line of products.
Yes, I suppose some pundits are calling it the iPhone 6. And potentially profound changes? The author obviously hasn’t seen what phones outside of iWorld can do, because these profound changes are merely playing catch up in a few areas with the rest of the market.
More Competition In Large Phones
Since the launch of the iPhone seven years ago, the device’s screen size has only increased by half an inch. Meanwhile, the global appetite for large phones has been insatiable, and Samsung has been the main beneficiary. Devices with screens larger than 4.5 inches made up a third of the worldwide market last year, and IDC expects them to grow to 44 percent this year.
Now, Apple is finally getting in on the action. The company plans to unveil models with 4.7-inch and 5.5-inch screens, according to people familiar with Apple’s plans
Apple is the last company to get in on the action. When you are the last to arrive, you’re no longer competitive.
Mobile Payment Lock-In
After years of experiments, Apple will announce a payments platform so that iPhone owners will be able to buy goods at brick-and-mortar stores with a quick flick of their iPhones. The company has inked deals with Visa, MasterCard and American Express for the iPhone 6, which contains a wireless chip that transmits data securely to an in-store reader.
Even in the rosiest scenario, you’ll still want to keep your wallet with you. It will take many years for the majority of retailers to make the investments necessary to support digital payments, says Richard Crone, a payments-industry consultant.
Still, Apple has a better chance to change consumers’ behavior than Google, which has struggled to convince hardware makers, mobile carriers and stores of Google Wallet’s worthiness. Apple has 800 million credit and debit cards on file with customers who have purchased items through iTunes. Apple may have to do some convincing after security concerns over hacked celebrity accounts. If Apple executes well, it will be far more difficult for Samsung to wrest iPhone customers away.
Please state it as is. Apple is announcing NFC. Something that has been present on competitors phones for years. Once again, Apple is last in the pool. Only difference here is that Apple may pull the US in to a realm of NFC payment that the rest of the world is enjoying, while we wait for our carriers and banks to fight out who gets to make money off of us. Apple has 800 million credit and debit cards on file? That’s a frightening number. Seeing how well Apple has taken care of people’s private photos, how safe do you think your credit is with them?
Watch and Learn
Samsung has been making smartwatches for at least a year. In May, the company held a splashy event hoping to establish itself as the center of the nascent wearables segment. It introduced Sami and Simband, a set of software and hardware standards that any company could use to create their own devices and apps, and released yet another watch of its own on Aug. 28.
Hmm… smartwatches. Sorry, I just can’t get in to them. Don’t think they’re ready for mass consumption yet. Then again, maybe I’m just not feeling very connectedly… is that even a word?
Apple has become the dominant provider of smart phones and tablets to corporations, seemingly without breaking much of a sweat. Apple’s focus on simplicity has encouraged information-technology departments to accommodate employees’ desire to use their iPhones and iPads at work. That’s been good enough to get these devices into more than 90 percent of the world’s largest companies, Apple CEO Tim Cook said earlier this year.
Sadly, I believe this to be true. I know all of my vendors use iPhones, granted, nearly all of them complain about them, and are forced to open their laptops to do most functions, meanwhile, I can go weeks without ever touching my computer. However, Apple has had something Samsung, or actually Android has not. It has had the general public believe they were secure. We know that’s not the case, and with recent events, not the general public knows this is not the case. As more companies get hacked, as more celebrities have photos stolen, and as more and more of our friends have their personal phones taken over, I think we shall see growth in the corporate sector start to change.
Apple May Be Finding It’s Voice Again
When Steve Jobs died in 2011, Apple lost not only its CEO and technology visionary, but the pitchman who championed iconic ad campaigns such as “Think Different,” “There’s an App for That” and “I’m a Mac.” Since then, Apple has churned out a stream of ads that were forgettable at best.
In the meantime, Samsung’s ad agency, 72andsunny, pulled off a brilliant bit of marketing jiu jitsu by going for Apple’s jugular. The ads mocked what is perhaps Apple’s greatest asset: the frenzied fans who turn up every year to wait in line for the newest iPhone.
Advertisements featuring nothing but third party apps, with soundtracks of “Gigantic” and “Chickenfat”? Really? This is the voice you’ve been waiting for?
Developers Love Apple
Samsung’s incredible run in recent years has come at a time of relative stasis for Apple. The Cupertino company has not introduced a major new product category since the iPad in 2010.
On the flip side, that’s given developers plenty of time to get familiar with Apple’s mobile devices. They’ve created more than 1.2 million apps and earned more than $20 billion, far exceeding Android. Developers are clamoring for new Apple products to code for, and they’re finally going to get them
Developers have had plenty of time to get familiar with Apple because it is the oldest OS out there! It is the same phone, year after year. Of course, by now it should be very easy for iOS developers to do their job. It should be like breathing now. But what happens if, as I predicted in a previous post, Android becomes the app language used by every other platform out there? With Apple’s shrinking market share, I bet most of those iOS developers will move on the the platform supported by the biggest segment of the market.
Realistically, this article is nothing more than an advertisement for the upcoming iPhone. Then again, the author writes for Bloomberg, so it may just be wishful thinking on their part. What should we really expect from the iPhone 6 launch? Record sales, lines to get it, artificial out of stocks. We will see this launch will mirror the previous launches. But once again, I bet we will see consumers that get the phone and are disappointed. More friends that will tell us that they should have just waited for the next phone. And more friends that we will see slowly dropping out of the Apple orchard and looking for a product that will actually do what they want it to. Apple’s market share is shrinking, and from what we’ve seen of the iPhone 6, that won’t be changing things at all.