Apple cutting orders for iPhone parts indicates weakness says Frost & Sullivan

Rating: Frost & Sullivan dares to say Samsung is the new Apple

It’s a bit of a taboo subject – just like Jimmy Saville’s antics, but industry analysts are finally admitting that Apple’s star is waning. And Samsung has taken over. The first clear indication of this are reports that Apple has cut orders for iPhone parts. But the signs have been there before. As one GoMo reader pointed out, when we reported Nokia’s discounting of the Lumia 920 here as a sign of weakness, Apple had done virtually the same thing in Canada – offering the iPhone 5 free on contract and nobody mentioned it. (See Comments to this story).
This weakness is offering competitors the opportunity to regain lost ground. Except for Nokia which still can’t bring itself to sell Android based phones.

Who is the obvious winner in this scenario? Answer: Samsung. It’s displaying a superior understanding of the smartphone/tablet market.

According to Frost & Sullivan’s industry manager, Saverio Romeo, “During the last year [2012], the advance of the Samsung armada has been relentless, continuously attacking its main competitor, Apple.”

He continued, “The attack has come from different angles, from the product angle, the patent one and the marketing one.”

“This aggressive tactic seems to delivering results. Samsung is a giant of today’s mobile device market, with Apple seeming to lose is breath a little.”

“Much like on the peaks of the Tour de France when the strong climber [high on drugs as it can now be revealed] increases the pace and the rest makes an effort to stay in touch! Certainly, it is not only Samsung’s strength.”

of course, it is incredibly easy to apportion the blame for Apple’s slow demise. The company has lost its chief muse – Steve Jobs.

“Steve Jobs was not just a business leader, but an inspirational leader for his company and his customer,” Romeo observed.

Romeo reckons that names like China’s ZTE and Huawei are no longer newcomers in the mobile device market. Instead they are forces to be reckoned with.

GoMobile News has always predicted the rise of ZTE and it has happened even faster then we anticipated thanks to Nokia’s obstinacy.

“New ideas can (and will) change the sizes of the pieces of the market share pie. New ideas will come from wearable devices, mobile computing, and use of nanotechnologies,” Romeo continued.

Like any other industry, there is a good chance that new players could appear from related sectors like Amazon and Google (and, perhaps even Facebook).

GoMo’s money is on Amazon. It has the ability to cross-subsidise mobile devices.

Many observers forget that it was Apple’s ability to extract money from mobile operators – a new business model, that drove it into the top slot.

Amazon could easily kill Apple by introducing a subsidised smartphone – as well as its tablet.

How could Apple respond? It would have to decrease the price of its smartphones phenomenally.

About Tony Dennis

Tony is currently Editor of GoMobile News. He's a veteran telecoms journalist who has previously worked for major printed and online titles. Follow him on Twitter @GoMoTweet.
This article was published in Apple, Samsung, mobile news and tagged , , , . Bookmark the permalink.

3 Responses to Apple cutting orders for iPhone parts indicates weakness says Frost & Sullivan

  1. Stefan says:

    Not sure if this is accurate interpretation.

    Apple is moving some of the production to the USA, wouldn’t that imply that they will be looking to reduce the quantity of supply from third party. Wouldn’t Apple be moving their “top of the range” product manufacturing the USA, which would mean iPhone 5; hence reduced demand from existing suppliers?

    On a side not, it still blows me away every time how full the apple shops are. Anywhere in the world. The queues lining up to pick up products are still there.

    The only thing that has changed though is the product of choice these days is the iPad mini…..just ask the folks in line waiting to pick up their products.

    The smartphone has evolved to Phablets and Mini Tabs .

  2. admin says:

    Yeah. Yeah. Apple is God and we are disbelievers. We know.

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