Smartphones are becoming commoditised, yet Apple has still not introducing low cost iPhone. The iPhone 5C is not cheap. In China, India, Africa, South America, the world's biggest growth markets the new "cheap" iPhone still looks too pricey. Apple's pricing leaves the huge smartphone market in developing counties open for Chinese smartphone markers running Android.
Chinese brands such as Xiaomi, Lenovo, Huawei, ZTE, Coolpad, Meizu, Vivo, etc. will soon have huge user base and expand into western markets.
As smartphone become increasingly more commoditised and innovation slows it is not practical for Apple to maintain such high profit margins. Apple products are cool, but way overpriced!
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