Apple May Crush Competitor’s With iPhone 5 Launch According to a report compiled and published by Topeka Capital Markets, it has been noted that the worst time to launch a smartphone would be when Apple Inc. (NASDAQ:AAPL) plans to release its new iPhone 5.
his report comes amid splashy smartphone launches by leading industry big wigs. As we had reported on Tuesday, Nokia Corporation (NYSE:NOK) did launch its very own Lumia 920 today. This launch coincided with Google’s Motorola launch. Indeed September will be characterized by a lot of launches. Apple’s highly anticipated iPhone 5 will be launched next week, on September 12th, while HTC will launch its newest smartphone on September 19th.
Despite the high number of launches, Topeka is not convinced that competition will brim. On the contrary, Topeka’s reports notes that HTC Corp (TPE:2498), Nokia Corporation (NYSE:NOK), and Motorola Mobility Holdings Inc (NYSE:MMI) may have made a huge mistake by releasing their smartphones at the same time as Apple’s iPhone 5. The iPhone not only has higher popularity throughout the global market, but it is also said to be the world’s most anticipated consumer electronic device.
To aggravate the already deplorable situation, HTC Corp (TPE:2498), Nokia Corporation (NYSE:NOK), and Motorola Mobility Holdings Inc (NYSE:MMI) will also have to battle for market share from Samsung Electronics Co., Ltd. (KRX:005930)’s already popular Galaxy S3. As such, the competition is reduced to a two horse race; Samsung Electronics Co., Ltd. (KRX:005930) and Apple Inc. (NASDAQ:AAPL).
Apple has a huge edge
Apart from the obvious advantage of an enormous market share, Apple has also been noted to have one peerless edge. Unlike other smartphones in the market, Apple Inc. (NASDAQ:AAPL) flaunts a vertically integrated digital grid.
What does this mean?
Apple’s software has been designed in a fashion that allows users to smoothly connect to other Apple devices. This means that a user can establish a seamless connection between, say, their iPhone and their iPad. This particular lineament sets some real daylight between Apple and its competitors. As such, any big screens, fancy wireless charging capabilities, and unprecedented features are not likely to steal the attention of loyal Apple customers.
Competitors’ lopsided fortunes
While the tech industry-in particular the smartphone niche-is swelling by the day, once belligerent players like Nokia Corporation (NYSE:NOK) and Research In Motion Limited (USA) (NASDAQ:RIMM) are stuck in the morass of their own mediocrity. Topeka’s report notes that Nokia Corporation (NYSE:NOK)’s market share dipped from 27.6 percent in the final quarter of 2010 to 6.6 percent in the second quarter of this financial year. Research In Motion Limited (USA) (NASDAQ:RIMM) has also shrunk indescribably and currently commands less than 5 percent of the market.
Apple Inc. (NASDAQ:AAPL) on the other hand has witnessed an increase in market share. It is only rivaled by Samsung Electronics Co., Ltd. (KRX:005930). Nonetheless, Topeka believes that Samsung’s fortunes could take a turn for the worse after its big patent case loss against Apple Inc. (NASDAQ:AAPL) last month.
U.S. adds 96,000 jobs in August; unemployment rate drops to 8.1 percent
The nation’s pace of job creation unexpectedly slowed in August, according to government figures released Friday, raising expectations that the Federal Reserve will inject the flagging economy with its biggest stimulus initiative in two years.
Employers added just 96,000 jobs last month. And despite sitting on a pile of cash, companies said they continue to hold back on hiring in the face of fragile business conditions, slowing growth around the world and uncertain national policies.
Moody’s Says U.S. Faces Aaa Cut Without Budget Deal in 2013
Moody’s Investors Service said it may join Standard & Poor’s in downgrading the U.S.’s credit rating unless Congress next year reduces the percentage of debt- to-gross-domestic-product during budget negotiations.
The U.S. economy will probably tip into recession next year if lawmakers and President Barack Obama can’t break an impasse over the federal budget and if George W. Bush-era tax cuts expire in what’s become known as the “fiscal cliff,” according to a report by the nonpartisan Congressional Budget Office published on Aug. 22. The rating would likely be cut to Aa1 from Aaa if an agreement on the debt ratio isn’t reached, Moody’s said in a statement today.
Moody’s put the rating under review with a negative outlook in August 2011, when the U.S. pushed back a decision on spending and raised its so-called the debt ceiling after months of political wrangling. S&P cut its rating to AA+ that month, blaming the nation’s political process. Treasuries rallied as investors ignored the reduction, with the yield on the benchmark 10-year note since declining to record lows and drawing the ire of investors such as Warren Buffett, the biggest shareholder of Moody’s, who said after the S&P decision that the U.S. should be “quadruple-A.”
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