DeZwarteRidder schreef op 30 juli 2014 10:38:
Apple's Xiaomi Problem
Jul. 29, 2014 8:26 PM ET | 50 comments | About: Apple Inc. (AAPL)
Xiaomi is increasingly becoming a threat to Apple outside China.
Long-term growth potential in Asia appears capped to very high-end users.
Regardless, Apple's stock offers the potential for market type gains.
The biggest problem facing Apple (NASDAQ:AAPL) long-term is that it's losing the competitive gap to mid-level smartphone and tablet makers. The company has a very loyal following likely to continue to purchase the high-end devices for the quality of the phone and the brand identification, but the growth potential could be limited without the ability to expand the market in emerging markets.
Enter Xiaomi into the Chinese market with an iPhone replica at a much cheaper price. For investors not paying attention, Xiaomi and others are quickly garnering large market shares in Asian countries. Combined with the lack of a phablet, Apple is now in a precarious position in what was once considered a massive market opportunity in China, but now appears to have a capped upside.
New Xiaomi Phone
According to Engadget, the Mi 4 smartphone is set to launch on July 29 for pre-ordering in China. The phone offers a 5-inch 1080p screen and will be sold at 16GB for $320 and 64GB for $400. The company sold 26.1 million phones in the 1H14 and expects to exceed sales of 60 million for the year. Total revenue will reach over $11 billion for the year. Below is a picture of the new phone from Engadget.