Apple's iPad Cannibalizes iPhone In The Middle East: Profitability Threatened?
By Nuqudy:Recently released mobile internet usage data from the Middle East raises the possibility that Apple's (AAPL) iPhone is being replaced for the key online browsing activity by the company's iPad. If this pattern holds beyond Saudi Arabia and the Gulf, it will have a significant negative impact on Apple's profitability.With iPhone sales already under Android pressure, loss of a key activity revolutionized by the device further weakens its market position. The much expected iPad 3, meanwhile, is being accompanied by rumors of price cuts (and reductions in profit margins), so picking up some of the iPhone's market will not necessarily translate into similar profitability.It should also be noted that the data specifically relates to users in the Middle East. Expectations of Apple's performance in the non-Western markets, particularly (but not only) in China, has been a key factor in the stock's pricing in recent months, and trouble inComplete Story »