The three big players

There are currently three big mobile handset makers, Apple, Samsung and Nokia. Here I am referring to mobile handsets as a whole, not only to smartphones. Apple and Samsung are profitable, Nokia is not. But, in my opinion, Apple has the biggest risk to fall right now. Bad signs are in the air, and the fall can be really fast.

Why apple would be the weakest? Because Apple can not design devices to manufacturing in a cost-efficient way. There are many references which say iPhone 5 is the most difficult device to assemble. And that is a really dangerous position when the price-competition heats up. Apple does not have cheaper device to sell. Here I do not count the old models, because they are old. Selling old for cheap does not hold if your brand image is hurt.

Samsung has achieved excellent sales with Samsung Galaxy S III. And I bet Samsung can make it devices cheaper than Apple.

The third competitor, Nokia, is a master of making devices cheap to manufacture. Most analysts simply ignore that Nokia still improves its market share in the lower end of the mobile handset price range. These devices also generate profit for Nokia. Nokia's increasing market share means Samsung is losing the low-end to Nokia. This penny-counting culture was probably a reason why Nokia lost its smartphone dominance. However, penny-counting is a permanent advantage when manufacturing physical devices for mass market. Design to manufacture is a reason why I still believe Nokia may still have an opportunity left.

Apple just fired the iOS and retail chiefs. The plain and simple reason may be that the Apple iPhone does not sell enought. It does not sell to the partners and it does not sell in Apple stores. Five million devices at start is not an evidence to guarantee success over the coming months.