Monday, July 2, 2012

Smartphone Market Will Be Dominated By The iPhone 5

iPhone 5
iPhone 5

The upcoming iPhone 5, which is reportedly set to be introduced by September, will become the leading smartphone in the market by next year as indicated by Mark Moskowitz, an analyst from JP Morgan.

The upcoming device will feature a number of hardware upgrades and will be supported by new services from Apple, which will allow it to become the leading smartphone for the coming year. The iPhone 5 is expected to turn heads due to the upgrades that it will feature including 4G LTE support.

According to a note from Moskowitz to investors, the innovative hardware upgrades and new services, including Maps, Passbook, and FaceTime, will allow the iPhone 5 to top the smartphone market in 2013.

Despite this positive outlook with the upcoming release of the iPhone 5, the projected sales and earnings for the second quarter of Apple were slightly lowered by JP Morgan due to macroeconomic challenges. However the lower projected sales for the iPhone in the third quarter is not unusual for the device, since this typically happens in the quarter prior to the release of a new model of the device.

However, the projections for the fourth quarter were increased by JP Morgan basing of the expected demand in the market for the upcoming iPhone 5.  Apple may also have to depend more on the sales of the iPhone following the reduction in the projections for the sales of the Mac and iPad by JP Morgan.

Moskowitz indicated that the higher projected sales of the upcoming iPhone 5 will offset the lower expected sales of the Mac and the iPad. The iPhone recently celebrated its fifth year in the market and despite a number of uncertainties when it was initially introduced by Apple one million units were sold in less than three months.

Over 218 million units of the device were already sold by Apple and this number is expected to increase with the upcoming release of the iPhone 5.

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