The most valued company in the world in terms of market capitalization-Apple has lost its position to Exxon Mobile. The rookie Apple’s fall from the top position is after continuing in the spot for almost a year. Since September 2012, Apples’ market value has came down to US $418 billion from $ 700 billion.
End of the Apple’s electrifying growth trend was imminent because of two factors. First, its latest smart phone- the iPhone 5, has lost the sheen of its predecessors among the customers. They have even preferred to continue with iPone 4. In the case of iPhne5, it is for the first time that Apple has lost the pivotal position to some other product like Samsung’s Galaxy SIII.
Secondly, the smart phone market is saturating in developed countries. New customers are lying in developing markets where lower end smart phones and aggressive strategies are required. Here Samsung, with extensive networks and penetrating strategies will rule market. Apple’s stand of ‘serving its product to the elite of the elite’ will not have a use here. Or in other words, Apple can’t remain as a giant global firm with its conventional marketing approach. The smart phone market it has opened; is now belongs to its competitors like Samsung and Huawei.
In the coming years, Apple, without diversified products and quickly rotating product launches may face an inevitable decline. Samsung has already shifted to lower end market with the launch of Galaxy Grand smart phone. Huawie is mixing strategies on operating system and feature fronts to give competition to Samsung. On the other hand, Apple, with once in two year type product launches, may deteriorate its position within no time.