In the three months ending in June, Apple sold 31 million iPhones worldwide compared to 187 million Android phones made by the likes of Samsung, HTC and LG Electronics, according to the research firm International Data Corp. That left the iPhone with 13 percent of the global market, down from 17 percent at the same time last year. Android phones held a 79 percent share, up from 69 percent last year, according to IDC.
Even though Apple's market value of roughly $460 billion is more than any other company in the world, the deterioration in its stock price is escalating the pressure on chief executive Tim Cook to prove he's the right leader to carry on the legacy of co-founder Steve Jobs. Since Cook became chief executive two years ago, Apple has only pushed out new versions of products developed under Jobs.
Cook has repeatedly said Apple is working on some exciting breakthroughs, without revealing details. The company is believed to be working on a so-called "smartwatch" that would work like a wrist-bound smartphone. Samsung Electronics, one of Apple's biggest rivals, introduced its own $300 smartwatch called Gear last week, as did Sony and Qualcomm Inc. It's unclear whether a smartwatch will be on Apple's Tuesday agenda.
The company isn't expected to reveal the latest model of its tablet computer, the iPad, until later in the year . Apple introduced a smaller, less expensive version of the iPad last year in response to the success of more compact and cheaper tablets running on the Android system.
This year's refresh of the iPhone line may address the growing popularity of cheaper Android phones. Based on leaks from suppliers, it appears Apple is poised to release a less elaborate and less expensive version of the iPhone.
Apple declined to comment.
A new version of the high-end iPhone also is expected to be revealed . The top-of-the-line model, expected to be dubbed the "5S," will be the first to be sold with Apple's revamped mobile software, iOS 7, already installed. The new system, which will automatically update apps installed on the device, can be downloaded on the iPhone 4 and later models, as well as on the tablets beginning with the iPad 2.
Besides running on iOS 7, the upgraded iPhone may include technology that enables its owner to unlock the device with a fingerprint instead of a four-digit code.
There is also speculation that the high-end iPhone will be sold in a golden colour to supplement the product line's more prosaic choice of black or white.
If there is a gold iPhone, it would be the latest sign of Apple's intensifying focus on China a market where hundreds of millions of Internet-connected devices are expected to eventually to be sold as the standard of living improves in the world's most populous country. The color gold is considered to be a sign of good fortune in China.
A less expensive iPhone would also help Apple boost sales in China and other less-developed countries.
In an unusual move, Apple has invited media to another event in Beijing a few hours after its California event, which has fed speculation that Apple has lined up a deal to sell its new iPhones through China Mobile, the country's largest wireless carrier. It is an alliance that Cook has been openly courting. The Wall Street Journal last week cited anonymous people who said Apple is preparing to ship iPhones to China Mobile.