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March 14, 2013

Apple products third choice in developing markets

Burgeoning markets in developing countries are favouring simpler hardware providers like Nokia over more high-end producers like Apple.

By CBR Staff Writer

While Apple’s dominance in western markets is set to be tested today (14 March) by the launch of Samsung’s Galaxy S4 internationally however the iPhone giant is already losing market share to its competitors.

Both Samsung and Nokia beat appeal in the 2013 Emerging Markets Mobile Attitudes Report from marketing technology company Upstream.

The poll, of 3,670 adults in Brazil, India, Nigeria and Saudi Arabia, was conducted by YouGov and Vanson Bourne.

It found while Apple’s success in the West has been predominately shaped by its premium brand status, the door is open for others such as Nokia to stake its claim on the emerging market audience.

The report reveals Apple only secures third place on emerging market consumers’ wish lists with 21% after big rivals Samsung with 32% and Nokia who are very slightly ahead with 22%.

Despite its recent and high profile decline in Western markets, Nokia has been named the brand most Nigerians would like to own (37%), and second favourite in Brazil after Samsung.

While an appetite for high-end smartphone devices exists throughout emerging markets 16% were willing to spend more than $450 on a device the report finds brand desirability cannot guarantee success in these new markets.

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The report also points to the huge significance of mobile phones to consumers in emerging markets, where it is the most used device for one in two 47% over laptops, tablets or desktop PCs.

The report shows 60% of consumers are prepared to spend up to $5 every month on mobile applications, and in Brazil, one of the fastest growing mobile markets, 14% of consumers would pay $10 or above every month.

Marco Veremis, Upstream CEO said: "The current App store model present in the West, which requires consumer credit or debit card details, is not one that can be easily transferred across into emerging markets.

"Thanks to the established billing relationship in place with consumers, the report identifies the huge opportunity for MNOs to build a more appropriate and effective model and deliver the data content and applications that consumer’s desire."

"We will see some unsuspecting winners in the open battle for emerging market consumers.

"Given the unique billing and marketing relationship mobile network operators have with consumers in emerging markets, they have the opportunity to be crowned kings."

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