Analysts: iPhone 5 not good enough

2012-09-13 13:05
Analysts have said Apple needs to have offered more features in its latest iPhone to ensure its relevance. (Eric Risberg, AP)

Analysts have said Apple needs to have offered more features in its latest iPhone to ensure its relevance. (Eric Risberg, AP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Tokyo - Asian mobile carriers look set to cash in on the iPhone 5 and its superfast speeds, but the model is not the game-changer that Apple needs if it to remain top of the heap, analysts said on Thursday.

The phone's use of Long-Term Evolution (LTE) wireless technology will allow carriers to increase their charges and boost profits as existing users download more content and smartphone non-converts are tempted to take the plunge.

But despite some new software, relatively minor tweaks to the hardware and an operating system that is starting to show its age risk leaving Apple trailing competitors such as South Korea's Samsung, and Google.

"The new iPhone will be Apple's most successful smartphone to date," said research firm Ovum from Melbourne.

"However, without a redesign of the iOS user experience and underlying software platform in the next two years, Apple will find itself in a position similar to Nokia and RIM... with outdated smartphone platforms."

LTE network

Kim Hue-jae at Daishin Securities said the main interest in the new iPhone had focused on its adoption of the fourth-generation LTE network.

"The iPhone shows a significant enhancement only with the fact that it runs on LTE. It will help LTE operators to boost their subscribers," Kim said.

But in Japan, where Apple has 28.7% of the large and growing smartphone market, the iPhone is tied to the second and third largest carriers, KDDI and Softbank, neither of which yet runs a compatible 4G LTE network, according to Dow Jones Newswires.

Both companies say they intend to roll out an Apple-friendly LTE network sometime in the year, but neither has specified a date. The iPhone 5 hits stores in Japan on 21 September, the same day it goes on sale in the US, Canada, Britain, France, Germany, Singapore, Hong Kong and Australia.

Industry leader NTT DoCoMo, which has a stranglehold on about half of the Japanese mobile phone market, does offer a compatible network, but does not sell Apple products.

It is heavily pushing the phones running Google's Android operating system, such as Samsung's Galaxy SIII, which has become the smartphone market leader in a number of countries in Asia and the West.

Apple and Samsung have been involved in patent row around the world and last month the US giant won more than $1bn in a high-profile court case against its bitter rival.

Market share

This week the Wall Street Journal reported that Apple was shifting some orders for memory chips for the iPhone from Samsung Electronics to other regional manufacturers but banking giant HSBC said Samsung was unlikely to be badly hurt.

"We believe the iPhone 5 launch will have limited impact to Samsung component businesses and is potentially positive to earnings," it said, adding that Apple's supply chain "diversifications" had been expected.

Smartphones accounted for only 22.5% of the Japanese mobile phone market as of March, with the ratio expected to rise in coming years, according to MM Research Institute.

"Just from the promotion point of view, it's easier to sell new products with new functions than existing products," said Daiwa Securities analyst Koki Shiraishi said.

"The launch should make more people aware of the availability of smartphones and reach people who are yet to use them," he said.

But that in itself could cause problems.

The expected spike in demand might lead to production hiccups, said Michito Kimura, senior market analyst at IDC Japan.

"It is possible that supply shortage of major parts, such as semiconductors, may temporarily suppress high-end handsets," including iPhone 5, he said.

Kang Hyun-gie, an analyst at Solomon Investment & Securities in South Korea, market players were not that impressed.

"Overall, the iPhone 5 was disappointing hardware-wise. The software side seemed a bit promising, but is seems like it isn't good enough to excite investors," he said.

Read more on:    apple  |  iphone  |  mobile
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
22 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 
Traffic
Lottery
 
  • Tuesday Epping - 10:06 AM
    Road name: N7 Vanguard Drive
    TRAFFIC LIGHTS not working at Bofors Circle
  • Tuesday Kuils River - 08:34 AM
    Road name: Polkadraai Road Eastbound
    ROADWORKS between the R102 Van Riebeeck Road and the R310 Baden Powell Drive exit - DELAYS
 
More traffic reports...
 

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

40% off appliances & homeware

Get mind blowing deals on top selling appliances and homeware. Offer valid while stocks last. Shop now!

Lenovo A1000 tablet now R999!

Get the Lenovo A1000 tablet for only R999! Offer valid while stocks last. Shop now!

Mind blowing deals on electronics!

Save up to 35% on electronics. Offer valid while stocks last. Shop now!

New gobii smartphones from R999!

Front and rear camera's, dual SIM capability and 200MB of FREE Cell C data every month for 12 months, are just some of the many features on these smartphones. Get yours now! Shop here.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Samsung Galaxy Tab P7500 10.1" Tablet With WiFi & 3G

Samsung Galaxy Tab 10.1 gives you a better experience for...

From R4999.00

I'm shopping for:

Horoscopes
Aquarius
Aquarius

It may be hard to avoid an argument or heated conversation today. Someone may be stirring things up and testing your patience. ...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.