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Apple does not compete in the low end market and the high end market wont have much growth compared to mid level and low level market. Most people from Asian countries where the future growth is cant afford $800-1000 dollar phones which is for most a few months income.
Now many of you are right in saying that apple does not care as its not selling to them anyway but the thing is once their are no new smartphone apple buyers it will start competing for customers with others and that is the time when it would start having problems.
Google is planning on a getting into the wireless telecom market I would bet you they would start with something like half the price of current telco contracts and to compete and not loose customers the big 4 american telcos would have to bring down their overpriced plans wont be able to subsidise the Iphone by the amounts they do today will be unwilling to pay apple high prices so apple will loose its high margins. I expect apple stock to either split or reach over $1000-$1200 a pop over the next 3-4 years but after that it is going to plummet.
I am predicting all this without considering any new inventions that come up in the next few years but truthfully I don't think smartphones will be the thing in 4 years time. In 4 years when the rest of the world has reached saturation in the smartphone market something like google glasses will be more the in thing with voice and gestures instead of touch screens. Another problem Apple will face in the future is big data where google is miles ahead of anyone but is still improving faster than the rest so in the future when ui and interfaces are not important but the information is Apple wont be able to make the amount of money it is making as the device you would be using wont be as important as the data.
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