I agree that Chinese phones and products in general have come a long way from being cheap/flimsy to usable/good and the smartphone brands are competing with popular Korean/Japanese brands. However, comparing them with iPhone just because the specs are better do not make sense. For one, same spec hardware can have large performace difference and second, but most importantly, the software and customer service is the major differentiator between differnt brands.
Eventually the high profit margins and lower technical innovation flexibility will push Apple as you can see now with the superior hardware specs of the Chinese products. Apple also makes so much profit by controlling the software marketing and channelling and content through itunes which is also reinforcing their overall laptop/ipad and computer sales, but superior spec'd products are availiable on all product lines.
I don't think they will be able to justify their margins for much longer as competitors line up to create parallel solutions on all fronts and will be able to support much lower margins - can Apple survive with the lower margins that will be needed in the newer environment? I hope Apple can do it, but with the growth of Asia's importantce in the world market will Apple be able to keep innovating enough to justify it's current business model?
The global market position of Apple iPhone will be pretty difficult to shake. First of all, there are enough number of Apple fans that will only buy Apple product and never the others. Secondly, in terms of industry design and the choice of materials, there are no phone come close to what Apple delivers. (In tablet market, I do think MS Surface is beautiful design though.) iPhone user interface is almost unbeatable because of habit.
I do agree the 4 megatrends put certain pressue to other smartphone's makers especially the rise of ODM and the brand to emerging market. Those are the market Apple fails (or reluctant) to penetrate.
@sheetal.pandey, yes, from the user's perspectives, there may be still a lot to be desired in devices by local Chinese top brands. However, if you ar a component supplier, the four mega trends laid out here illustrates unmistakable facts: Do not ever think you can get away with supplying China's local OEMs and ODMs such devices with the second best spec. They woudn't go near them.
Dude, iPhone's popularity and success is not because it has a large screen with good resolution. I had the experience to mess around with two top Chinese smart phones, the Huawei and the Lenovo. The specs are impressive but it's slow and not very user friendly. If they could improve the user experience that would be a game changer. For now, not so much.