To its credit, Research In Motion Ltd (NASDAQ:BBRY) has rolled out the Q5, which will be heavily marketed in developing countries. Complete with the well-sought-after qwerty keypad, the Middle East and Asia are target markets.
Research In Motion Ltd (NASDAQ:BBRY)’s success has historically been rooted in it capturing a large segment of business users. However, that has been threatened as its operating system is being trumped by Apple Inc. (NASDAQ:AAPL)’s iOS, Google Inc (NASDAQ:GOOG)’s Android and Microsoft’s Windows 8 systems. Its success in the consumer market is necessary to ensure long-term viability in business markets, notes Gartner.
As far as Nokia is concerned, Restivo told the Investors Business Journal that Nokia is “actively working to convert its feature-phone users in emerging markets to low-cost smartphones.” So, if Nokia Corporation (ADR) (NYSE:NOK) is to regain some of its past glory, that’s where it needs to succeed, Restivo noted.
Troubling about Nokia is that it hasn’t even been able to maintain the number-one position as a smartphone maker in its own country, which is Finland. Samsung now holds that top spot globally.
In its last report on global smartphone sales, Gartner pointed out that although Nokia Corporation (ADR) (NYSE:NOK)’s Windows Phone sales have “sequentially improved,” reaching a volume of 5.1 million units. However, the once leader in mobile phone sales has yet to see high growth in the smartphone segment. Its position in the smartphone market dropped to No. 10 in the first quarter of 2013, from No. 8 in the fourth quarter of 2012, according to Gartner.
The move by it and Microsoft to power the newest Nokia with the Windows Phone operating system was somewhat of a saving grace. The so-called windows phone has passed Google Inc (NASDAQ:GOOG)’s Android and Apple’s iOS in terms of sales in Finland.
Why Apple’s losing the battle
This demand in the emerging markets, and the rest of the world for that matter, is partly driven by a deep selection of devices available at multiple price points, notes the IDC. In the dog-eat-dog world of mobile-device sales, manufacturers are finding that capitalizing on any of their competitors’ weaknesses can help propel them to the top.
In the case of Samsung, there seems to never be a month, let alone a quarter, in which it fails to roll out some new device. Not only that, but the company builds a variety of devices and sells them at several different price points, leading to it having a device to fit just about every person’s needs and budget. Apple Inc. (NASDAQ:AAPL) can’t boast this. It has traditionally released a new iPhone just once a year.
Apple is in the unique position of being a well-known household brand. If it sells lower-priced phones, demand may very well increase due to its reputation for innovating. Regardless, it needs drastic changes to keep up with not just Samsung, but also Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Ltd (NASDAQ:BBRY). Again, this is especially the case with emerging markets, considering the smartphone market in the U.S. and other developed companies is saturated.
We may get a better idea of Apple’s plans soon. Its developers conference spans the week of June 10.
Tedra DeSue has no position in any stocks mentioned. The Motley Fool recommends Bed Bath & Beyond.
The article Emerging Markets Are Crucial for Apple originally appeared on Fool.com.
Tedra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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