Should Apple (AAPL) Worry About These Vendors?

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Apple Inc. (AAPL) has never had many worries in the smartphone and tablet markets. For the most part, Cupertino has been able to thwart any advances from the competition over the years, allowing it to remain the top name in the tech industry.

What_Is_The_Fate_Of_Apple_s_IPhone_5C_.jpgWhile Tim Cook and company may have a solid grasp on the North American market, there is always concern about what is going on in other parts of the world. Emerging markets, for example, have different needs than the United States and Europe.

Demand for affordable smartphones and tablets in emerging markets is on the rise. And “affordable” seems to be the one thing Apple doesn’t do. The iPhone and iPad both have a reputation for being among the most expensive devices in their respective market — and that’s not going to change anytime soon.

These Vendors Coming on Strong

With all this in mind, Gartner has discussed the strong sales of white box devices this year. If you are unsure of just how quickly white box shipments are growing, consider this tidbit from the research firm:

“Gartner expects the white-box smartphone market to grow 50 percent, while the white-box tablet market will experience growth of 15.6 percent.”

This won’t do much, if anything, to Apple in mature markets. However, the company could struggle to grow in emerging markets if white box devices continue to grow in popularity.

There used to be a time when launching a smartphone or tablet took a lot of time and planning. Those days are long gone. Now, vendors have an ecosystem in place, thanks in large part to the Android operating system, which allows them to push a device to market within a month’s time, fueling growth among white box vendors.

The white-box growth won’t be a major concern for AAPL, but it could hold the company back in many markets, including China, over the next few years.

As of this writing, Chris Bibey did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2014/09/apple-aapl-worry-vendors/.

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