With the iPhone now a consumer favourite, and applications for the device selling at an astounding rate, Apple stands a real chance of capturing the #1 position in the global smartphone market, according to a recent report by Generator Research.
“Our analysis is that the iPhone and App Store constitute a vertical platform for the delivery of advanced mobile services that will be developed in a similar manner to how Apple developed its digital music platform, which included the iPod and the iTunes Music Store,” explained Generator’s head of research, Andrew Sheehy. “Outsiders are rewriting the mobile industry’s rulebook for how to deliver mobile services and the new rule #1 is that you need a fully-integrated service development platform that has a rich API which is open to third party developers on favourable commercial terms. Right now, Apple has the best platform and the best-looking forward roadmap.”
Generator also pointed out that Apple has an impressive $25 billion in cash reserves, and continues to maintain a profit margin of 33%, putting it in a strong position to invest in new mobile devices, even as the global recession forces many of its rivals to scale back on product development.
“We think that Apple will use its financial strength and revenue velocity to try to get one or more design cycles ahead of the competition. The result could see Apple shipping as many as 77 million iPhones in calendar 2013,” Sheehy predicted, noting that the company could have several iPhone models on the market by that time.
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