Apple Inc. (AAPL): Will the iPhone Make a Difference for T MOBILE US INC (TMUS)?

Most forecasts indicate that the smartphone market will continue to grow at fairly rapid rates. QUALCOMM, Inc. (NASDAQ:QCOM) forecasts that between 2011 and 2016, the smartphone market will grow at a 24% compound annual growth rate. Most of the growth is likely to come from low-end to mid-end smartphone devices. Because of this, Apple Inc. (NASDAQ:AAPL) may have pent-up growth through the release of a lower-end smartphone that is similar in concept to its recent release of the iPad Mini. Samsung on the other hand already has low-end devices.

Conclusion

T MOBILE US INC (NYSE:TMUS) is in a difficult position. On one hand, it has been able to address one of its greatest weaknesses by offering the Apple Inc. (NASDAQ:AAPL)iPhone. People feel that T-Mobile has the worst network in terms of quality. This cannot be addressed with short-term measures.

I believe that Apple Inc. (NASDAQ:AAPL) will continue to maintain a competitive lead, and will be able to lessen Samsung’s lead in global market share by winning major phone deals with emerging market telecom companies.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

The article Will the iPhone Make a Difference for T-Mobile? originally appeared on Fool.com.

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