Surging iPhone, plummeting feature phone sales push Apple past Microsoft in mobile market
Though slowing as a whole, the global cellphone industry -- including both smartphones and feature phones -- saw several platform rankings shake-ups during the June quarter, with Apple rising to second place and helping to push Microsoft into fourth place, according to Strategy Analytics data published on Thursday.
Apple's 35 percent bump in iPhone shipments year-over-year to 47.5 million gave it a 10.9 percent marketshare of mobile operating systems, even though it doesn't sell feature phones, the research firm said. Microsoft's total shipments, meanwhile, plummeted from 50.3 million to 27.8 million, kicking it out of second place and leaving it with just 6.4 percent of the market.
The latter's catastrophic performance was blamed on a decline in its feature phone sales, and Lumia smartphones going into a "holding pattern" while the company prepares Windows 10 models for later in 2015. Earlier this month, Microsoft announced plans to axe up to 7,800 former Nokia workers, and absorb a $7.6 billion write-down for its cellphone business, plus restructuring charges between $750 million and $850 million.
Samsung remained the leader in the June quarter, although its share slipped from 22.3 to 20.5 percent as shipments declined from 95.3 million to 89 million. Huawei assumed third place as its share rose from 4.8 percent to 7 percent, or 30.6 million units. Xiaomi claimed fifth spot with a 4.6 percent slice, up from 3.5 percent.
Overall cellphone sales inched ahead 2 percent from 428 million to 434.6 million, the industry's weakest performance in two years, Strategy Analytics said. The issue was linked to slowing demand in the U.S., China, and Europe.
Apple's 35 percent bump in iPhone shipments year-over-year to 47.5 million gave it a 10.9 percent marketshare of mobile operating systems, even though it doesn't sell feature phones, the research firm said. Microsoft's total shipments, meanwhile, plummeted from 50.3 million to 27.8 million, kicking it out of second place and leaving it with just 6.4 percent of the market.
The latter's catastrophic performance was blamed on a decline in its feature phone sales, and Lumia smartphones going into a "holding pattern" while the company prepares Windows 10 models for later in 2015. Earlier this month, Microsoft announced plans to axe up to 7,800 former Nokia workers, and absorb a $7.6 billion write-down for its cellphone business, plus restructuring charges between $750 million and $850 million.
Samsung remained the leader in the June quarter, although its share slipped from 22.3 to 20.5 percent as shipments declined from 95.3 million to 89 million. Huawei assumed third place as its share rose from 4.8 percent to 7 percent, or 30.6 million units. Xiaomi claimed fifth spot with a 4.6 percent slice, up from 3.5 percent.
Overall cellphone sales inched ahead 2 percent from 428 million to 434.6 million, the industry's weakest performance in two years, Strategy Analytics said. The issue was linked to slowing demand in the U.S., China, and Europe.
Comments
And this means what exactly?
The 'feature phone' category is shrinking fast. It is really not big news to Apple because there are no profits down there and most of those people will buy a cheapo Android. In the third would feature phones still sell ok, and that is how Microsoft is even number four, because of its purchase of Nokia.
People can't buy what's not being made, and even if they are being made the carriers don't sell them because they'd rather have you on a more expensive smartphone plan.
People can't buy what's not being made, and even if they are being made the carriers don't sell them because they'd rather have you on a more expensive smartphone plan.
They're being made and sold (if not actively promoted). I was in my local AT&T store last week and there were six different feature phones on the wall. I asked who's buys them and the salesperson said mostly senior citizens and those with a need for a second phone because they have a company smartphone.
Sales drives what's being made, not the other way around.
There were zero iPhones before 2007. Are you sure about your point?
Am I missing something here?
I'll never understand why Apple blogs and rumors sites care so much about these stilly market share reports. We have no idea where they get their data from and since Apple is really the only company to announce sales data it's impossible to know what the market is and what Apple's share of it is. Let's not forget in 2011/2012 some of these same firms were predicting Windows phone would overtake iOS as the #2 platform by now. That's how little credibility they have.
It's just spin. Marketshare doesn't matter unless it's good news for iOS, then it matters.
They're actually quite popular in other countries.
I'll never understand why Apple blogs and rumors sites care so much about these stilly market share reports. We have no idea where they get their data from and since Apple is really the only company to announce sales data it's impossible to know what the market is and what Apple's share of it is. Let's not forget in 2011/2012 some of these same firms were predicting Windows phone would overtake iOS as the #2 platform by now. That's how little credibility they have.
Do you realize how many traces you leave on the Internet when you buy a phone? These traces can be collected and analysed.
Clever research companies use multiple resources. They can ask mobile operators, large distribution chains, components manufacturers, ... to get a pretty good picture. For stock market reasons the figures are not made public. But off the record some vendors communicate these figures anyhow to the research companies.
I must be trippin'! I don't recall Microsoft selling 50+ million phones ever, let alone plummeting sales of 27.8 million in the quarter. For years as Microsoft tried to weasel into the smartphone market, they'd always hold around 1-3% market share.
Am I missing something here?
Yes. You missed the fact that Microsoft owns Nokia, and many of those feature phones are being sold worldwide... but those sales are dwindling fast and have been for quite some time. Nokia used to be king of the phones.
There were zero iPhones before 2007. Are you sure about your point?
I think that the previous poster made a good point but you apparently missed it when you slid into an absurd example to counter his point.
I must be trippin'! I don't recall Microsoft selling 50+ million phones ever, let alone plummeting sales of 27.8 million in the quarter. For years as Microsoft tried to weasel into the smartphone market, they'd always hold around 1-3% market share.
Am I missing something here?
I thought the same thing until I realized they're NOT talking about WINDOWS phones, they're talking about NOKIA. Most of the general public would easily make the mistake to assume the article is talking about windows phones. It is a misleading and poorly written title. And a lazy writer who doesn't include the fact they're talking about Nokia shipments which is a subsidiary of Microsoft.
To be sure, there are also Windows phone shipments wrapped into the numbers. But the overwhelming majority of phones are from Nokia. Once again, poorly written article that this is clear as mud.
WTF!? Microsoft has been in the mobile market?
Learn something new every day.....
Add: Just noticed that it was a report from Strategy Analytics. 'Nuff said.
And this means what exactly?
It means Microsoft just lost 7,800 of their best customers.
I could be wrong but I thing the heading is misleading. I think it means to say Apple's mobile now larger than Microsoft's entire sales ... not Microsoft's mobile market share.
Or perhaps as others have said this is Nokia but that makes little sense either to me.
The very first sentence states the 'global cellphone industry', nothing after that alludes to any other market. I just don't ever remember seeing MS as the #2 mobile OS on any list, maybe in select countries but never worldwide.
*only pertains to Apple.