Is the iPhone Missing Out?


The low-end of the smartphone market is expected to double every year until 2016, representing major opportunities for players in that segment. The price points between $150 and $200 are dominated by devices running Google Android, since it's open source, while Apple maintains its premium offerings. Keep in mind that Android vendors still end up paying royalties to Microsoft, so Android isn't entirely free. In markets where smartphones are unsubsidized, such as India, Apple has had trouble gaining market share. Chinese iPhone carriers like China Unicom and China Telecom subsidize the iPhone, helping Apple in that market. Still, the iPhone may be missing out on one important growth segment in smartphones.

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Evan Niu, CFA, owns shares of Apple. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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