Can iPhone5 save Apple

The Beijing standard time on September 8 the news, United States Science and technology blog analysis BusinessInsider in Friday published an article and said that over the past 5 years, Apple is the profiteering winner in Smartphone and Tablet market. With the launched of Amazon tablet, Apple's iPad profit have eroded. News that Amazon is developing intelligent machines, this may also lead to future profits dropping on the Apple iPhone.

The past 5 years, one company--Apple is definitely profiteering winner in smart phone and Tablet market. While other industry companies are struggling, or go bankrupt.

Free markets should not work like this. Free markets should produce intense competition, also cap gains in profit margins; competitors should be coveted market leaders gained significant revenue, and then heavily into Chase, which will eventually lower prices than competitors sell products. In this way, competitors will erode some of the profits, makes the market leader (and consumer price) restrictions on the growth.

Smartphones accounted for Apple's gross profit of 60%, but Samsung have developed to catch up on the Apple iPhone product (Galaxy s-III). Apple will release next-generation iPhone next week, which is likely to spur a new round of sales boom. But Samsung and every announcement that Apple can compete ahead of the competition, so consumers have a real choice. Some consumers will choose Samsung or other Android manufacturers, which will further erode Apple's profit growth.

Tablet PC

At the same time, Apple Tablet is also subjected to attacks from two different business models and other hardware manufacturers company that attacks-Amazon and Google.

Whether Amazon or Google, they don't need to make money by selling hardware, because they get revenue through other channels: Google relies on searching, Amazon relies on content and e-commerce. If the two companies can produce competitive products--no better than Apple product, simply have the competitive – they can at well below Apple's prices for their products. We have already seen signs that in the latest of several products launched.

Google has sold mini Tablet PC--Nexus 7, the price is $ 199. While Amazon on Thursday announced a Kindle tablet models of similar Fire HD, the price is the same for $ 199.

Amazon has also published a large-size tablet models, close in size and configuration to low-end iPad 2, priced $ 299 and cheaper $ 100 than iPad 2. These two products will put pressure on iPad sales.

For most Tablet users, compared to $399 iPad, $199 Kindle or Nexus is a more attractive option. A case study of family, the child may fall, loss or other insolvency of their tablet, $ 199 is cheaper compared to $ 399.

Apple plans to release next week "iPad Mini", it will have a direct competition with Kindle and Nexus, but if its price at $ 299, sales may not be very good (only $ 100 cheaper than full-size iPad). But if the iPad Mini on sale at less than $ 299, so Apple on this product, it is difficult to get too much profit.

Smart Phone

Apple iPhone may be the world's most profitable product, profit margin reached 40%, will bring at least 30 billion dollars to Apple in revenue this year.

Is Apple profits secure?

No, it is not secure, no profit is always safe. Especially in the fierce competition in the technology industry, RIM and Palm are good examples.

Samsung's rise has made consumers to have a real choice in the high-end smartphone market, while Google's mergers and acquisitions for Motorola mobile will eventually provide more choice. This makes Apple's profits more lower. However, Apple iPhone5 is coming, I do not know that Apple iPhone5 can save Apple, Apple iPhone have own a lot of fans, many fans have bought a lot of iphone accessories to wait iPhone5, such as unique iphone cases, iphone holders, iphone power packs, iphone dustproof plugs and so on. So I think that it is very hard to beat Apple iPhone.

But the Tablet market is different, Smartphone market will get carrier subsidies protection. Consumers in exchange for a two-year pay package costs for more than $ 100 per month, operators will provide between $ 400 and $ 600 for a high-end handset subsidies. Such subsidies make a sell to consumers of phone package price of only $ 200, compared to $ 600 price, consumers are more likely to accept, after all, a phone that you want to use a few hours every day.

So far, in the high-end smartphone market, also provided more aggressive low price no manufacturer selected. But this day will not be too far away.