Apple Set To Clean Up In SmartPhone Market

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As several Companies line up to take on the iPhone in the smartphone market, researchers are saying that Apple will end up with 40% of the global market due to their massive cash reserves.

According to market research firm Generator Research, Apple is in an excellent position to dominate the phone market over the next few years.

“With cash reserves exceeding $34billion, 33% gross margins and the iPhone just about to enter its fastest-growth phase, Apple has the resources, competencies and motivation to invest in the mobile sector just at the time when the economic climate is forcing many established players in the mobile industry to cut back on product development,” said Generator head of research Andrew Sheehy.

Apple’s surge could cut Nokia’s share of the smartphone market from 40% today to 20% by 2013. In the US market Nokia’s share has dropped from 15% 18 months ago to less than 8% today.

Generator Research said that Apple could ship as many as 77 million iPhones by 2013, including several different models addressing different market segments.

“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,” added Sheehy.

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