Mobile carriers are all set to make big bucks via Apple Inc.(NASDAQ:AAPL)’s iPhone 5 and its high speed connectivity, as non-smartphone users will queue up to buy the product soon and current users will keep on downloading more content. The phone uses Long-Term Evolution (LTE) wireless technology and carriers are already revising their service contracts to ensure that profits keep pouring in.
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However, all is not hunky dory with Apple iPhone 5 – the new software might be promising, but the hardware is far from perfect and the operating system can be a victim of age risk. Research firm Ovum from Melbourne states that the new iPhone will be the most successful smartphone in recent times but if the iOS user experience is not revamped and the software platform is not brought up to standard, then Apple will end up like RIM and Nokia, both of which are suffering the effects of outdated smartphone platforms.
The USP of the iPhone 5 is the fourth-generation LTE technology, according to Kim Hue-jae at Daishin Securities. In
Apple has a 28.7% share of the smartphone market and the iPhone collaborates
with the second and third largest carriers, KDDI and Softbank. The problem is
that both carriers don’t run a compatible 4G LTE network yet. They have
announced that they will soon incorporate the LTE technology, but the time
frame is uncertain.
NTT DoCoMo, which dominates half of the Japanese smartphone market, does not sell Apple products in spite of offering a compatible network. In fact, it is actively campaigning to increase sales of Apple’s rival, Samsung, whose phones run on Google's Android operating system. Recently, Apple won a patent suit over Samsung and was awarded over $1billion in damages. Apple has reportedly stopped ordering memory chips for the iPhone from Samsung and has routed it to regional manufacturers. But this move will not affect Samsung much in terms of profit.
Coming back to the iPhone 5, Kang Hyun-gie, an analyst at Solomon Investment & Securities in
South Korea says that investors are
not too eager given the lack of solid hardware support. If Apple wants to
retain its position in the market via this product, then it needs to pay
attention to this matter ASAP.