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Jul 29, 2012

Analysis: Apple sounds warning bell for smartphone industry

By Sinead Carew and Tarmo Virki

(Reuters) – If Apple Inc’s weaker-than-expected quarterly result is anything to go by, the global smartphone industry is a lot more vulnerable to economic shocks these days than during the 2008-2009 financial crisis.

In developed markets, every other person already owns a smartphone. In emerging markets, penetration rates are much lower, but cheaper phones that cost under $100 are squeezing profit margins.

Jul 29, 2012

Apple sounds warning bell for smartphone industry

July 29 (Reuters) – If Apple Inc’s (AAPL.O: Quote, Profile, Research)
weaker-than-expected quarterly result is anything to go by, the
global smartphone industry is a lot more vulnerable to economic
shocks these days than during the 2008-2009 financial crisis.

In developed markets, every other person already owns a
smartphone. In emerging markets, penetration rates are much
lower, but cheaper phones that cost under $100 are squeezing
profit margins.

    • About Sinead

      "Sinead is a telecommunications industry correspondent. Her coverage area spans U.S. service providers, cellphone makers and chip makers. Before joining Reuters in 2002, she covered technology and telecoms for various trade publications."
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