or Connect
AppleInsider › Forums › Mobile › iPhone › Smartphones outsell feature phones for first time, while Apple's iPhone loses market share - Gartner
New Posts  All Forums:Forum Nav:

Smartphones outsell feature phones for first time, while Apple's iPhone loses market share - Gartner

post #1 of 71
Thread Starter 
Despite moving 3 million more iPhones in the second quarter of 2013 than in the same period last year, Apple's share of the overall smartphone market shank more than 4 percent, while total smartphones outsold feature phones for the first time worldwide, according to new data from research firm Gartner.

Gartner


Samsung was the chief beneficiary of Apple's decline, according to the new data published on Wednesday, with the Korean electronics giant capturing 31.7 percent of the market. Apple, meanwhile, conceded 4.6 percentage points from the same period a year ago, securing 14.2 percent of smartphone sales to end users, Gartner said.

LG Electronics, another Korean conglomerate, and Chinese companies Lenovo and ZTE also posted gains, taking 5.1 percent, 4.7 percent, and 4.3 percent, respectively. Though iPhone sales grew year over year, Apple's smartphone hasn't been growing as fast as the rest of the market, according to Gartner.

Among mobile operating systems, the Asian companies' advances pushed Google's Android to a commanding 79 percent market share among smartphones sold, followed by 14.2 percent for iOS, 3.3 percent for Microsoft's Windows Phone, and 2.7 percent for BlackBerry OS. Samsung's nascent Bada OS and Nokia's formerly dominant Symbian rounded out the top 5 with less than a percent of the market combined.

The report also suggested that brisk sales of the three-year-old iPhone 4 were responsible for a "significant" drop in the iPhone's average selling price in the second quarter, cautioning that a new low-cost model, rumored to be dubbed the "iPhone 5C," may exacerbate the trend.

"Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalization will be much greater than what is seen today with the iPhone 4," Gartner analyst Rashul Gupta said. "Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it."

Apple, however, did see an increase in the company's overall mobile phone market share, from 6.9 percent in the second quarter of 2012 to 7.3 percent in the same period of calendar 2013. The uptick appeared to come chiefly at Nokia's expense, with the Finnish company's share dropping nearly 6 percent thanks to slackening sales of feature phones.

The data released on Wednesday shows that Apple's share of the worldwide smartphone market has continued to slide throughout 2013. Data for the year's first quarter released by Gartner in May showed that Apple had fallen from 22.5 percent of sales to end users in 2012 to 18.2 percent in 2013.

Then, too, Apple's losses were largely the benefit of rival Samsung, which grew from a 27.6 percent market share in the first quarter of 2012 to 30.8 percent in the same three-month period in 2013.
post #2 of 71
What is the difference between a smartphone and a feature phone? Are most of Samsung's smartphones actually feature phones without too much smarts? Are there even any feature phones still being manufactured or has the industry changed everything to smartphones?
post #3 of 71

You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue. It's time for Cook to innovate or get out.

post #4 of 71
Quote:
Originally Posted by ruel24 View Post

You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue. It's time for Cook to innovate or get out.

 

paid by Samsung?

 

These stats are USELESS.  You need to compare Apple's marketshare in the HIGH END smartphone segment only ($500-$700).  In that segment Apple is dominating.  Comparing a $50 Chinese crap 'smartphone' that can barely load Google.com to a premium $600 phone is plain stupid and lazy.

post #5 of 71
Originally Posted by ruel24 View Post
You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue. It's time for Cook to innovate or get out.

 

Shut up and go away.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #6 of 71
Quote:
Originally Posted by ruel24 View Post

You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue.

 

You can keep on losing market share and still have revenues rise you know?  Innumeracy strikes again!

post #7 of 71
If Apple doesn't take the low-end low-feature low-quality low-usage cheapo market by storm, they are doooooomed!! 1smile.gif Why would developers bother making apps for anyone but that end of the market? You know, the end that under-uses their phone, never buys apps, and has no money? Developers love that!

Note that Apple does better with second-time smartphone buyers than first-time. Thus, Apple doesn't need the entry market.
post #8 of 71
Quote:
Originally Posted by sog35 View Post

 

paid by Samsung?

 

These stats are USELESS.  You need to compare Apple's marketshare in the HIGH END smartphone segment only ($500-$700).  In that segment Apple is dominating.  Comparing a $50 Chinese crap 'smartphone' that can barely load Google.com to a premium $600 phone is plain stupid and lazy.

I have to agree. You HAVE to compare Apples to....well... Apple copies. It's pointless to compare Apples to all the fruits in the world, beginning with tiniest berries  ending with biggest watermelons.

post #9 of 71
Quote:
Originally Posted by ruel24 View Post

You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue. It's time for Cook to innovate or get out.

Lol! And replace him with who exactly?
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #10 of 71

No mention at all about whether customers went in seeking a smartphone or they just bought whatever the sales staff pushed on them.  God, spare us from these pig-ignorant, insight-free analyst write-ups. 

post #11 of 71
Quote:
Originally Posted by tundraboy View Post

You can keep on losing market share and still have revenues rise you know?  Innumeracy strikes again!

Not mention that markets hare is being defined comparing apples and pears.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #12 of 71
Quote:
Originally Posted by ruel24 View Post

You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue. It's time for Cook to innovate or get out.

I hate giving someone who doesn't understand the way a company works any credit for posts but Cook is one person in a large company. Removing him won't do anything because the company (Apple) has product plans in line a couple years in advance. Cook has done a great job keeping Apple financially secure. This started before he took over Steve Job's position. Steve Jobs was a visionary but he absolutely needed help form others to implement his vision. Those people are still at Apple and are still creating better products. Innovation is a stock market buzz word used to either sell or buy stock. It rarely has anything to do with the actual success of a company. Someone can innovate and produce a product that doesn't sell much, it's still called innovation. Apple is selling products into an user environment, they're aren't selling static products. Look at what Samsung is selling. They're selling a bunch of individual products dependent on the environment of others. Many people only look for what's the least expensive item in a store without admitting they'll buy another cheap item very soon. They refuse to add up the similar items they buy each year. Apple sells a very good product environment that doesn't need to be purchased every couple months.

 

I'd like to hear from Gartner home many repeat customers of the same type of phone in the same year each company has. I bet Samsung would average two to three times as many purchases a Apple customers because their phones don't last or don't do what they thought they would. Of course, someone would spin this as repeat customers but I see it as unsatisfied customers.

post #13 of 71
The chart doesn't match the data on Gartner's site. Apple sold 28 million phones in the quarter last year, not 33. The chart makes it look like their sales went down.
post #14 of 71

Of course Apple's marketshare is going down.. they are going to be releasing two new phones in what, 2-4 weeks? Nobody in their right mind would buy an iPhone right now. In fact, people probably have already sold their old iPhones and bought some cheap Android POS until this new one comes out. :p

post #15 of 71
Quote:

The report also suggested that brisk sales of the three-year-old iPhone 4 were responsible for a "significant" drop in the iPhone's average selling price in the second quarter, cautioning that a new low-cost model, rumored to be dubbed the "iPhone 5C," may exacerbate the trend.
 

 

The average selling price is a complete bogus stat. If Apple keeps its margins across market segments a lower average selling price wont mean anything. This is why lower segments will have lower cost casings.

 

Those stats are in line with IDC and shows the importance for Apple to enter more market segments if it want to continu to growth and to avoid painting itself into a niche market, which could be harmfull to the ecosystem.

post #16 of 71
So basically there are a lot of cheap feature phones being replaced by cheap android "smartphones". I'm not sure Apple is too worried about that.
post #17 of 71
There is absolutely no way Apple can gain market share against Android smartphone manufacturers shipping under $100 smartphones in BRIC nations. Apple can only gain market share on Android if and when Samsung switches over to Tizen OS and it seems that has been put on hold. Even if Apple could sell 50 million iPhones a quarter, the iPhone would still continue to lose market share but at a slightly slower rate. Android OS is bound to peak out at some point, but it doesn't seem likely within the next couple of years.
post #18 of 71
Quote:
Originally Posted by tundraboy View Post

 

You can keep on losing market share and still have revenues rise you know?  Innumeracy strikes again!

 

At some point people will realize they are getting rip off and go else where.  Market shares matters to some degree.

post #19 of 71
Market share ? Apple is so low , can u give me the chance to buy Aapl again at $400 ?
post #20 of 71

'Worldwide' is such a useless metric. I'd like to know the shares (and growth rates) broken down by: US, EU, China, India, Japan, Rest of the World.

 

Until Apple has a viable, profitable, low-priced product, it is pointless to compare it to others whose sales are dominated by low-end, low-margin products sold in high volume in low-income countries.

post #21 of 71
Quote:
Originally Posted by anantksundaram View Post

'Worldwide' is such a useless metric. I'd like to know the shares (and growth rates) broken down by: US, EU, China, India, Japan, Rest of the World.

Until Apple has a viable, profitable, low-priced product, it is pointless to compare it to others whose sales are dominated by low-end, low-margin products sold in high volume in low-income countries.

There's more detail at Gartner
http://www.gartner.com/newsroom/id/2573415
melior diabolus quem scies
Reply
melior diabolus quem scies
Reply
post #22 of 71
Quote:
Originally Posted by Constable Odo View Post

There is absolutely no way Apple can gain market share against Android smartphone manufacturers shipping under $100 smartphones in BRIC nations. Apple can only gain market share on Android if and when Samsung switches over to Tizen OS and it seems that has been put on hold. Even if Apple could sell 50 million iPhones a quarter, the iPhone would still continue to lose market share but at a slightly slower rate. Android OS is bound to peak out at some point, but it doesn't seem likely within the next couple of years.

Gain market share of what? Why on earth would Apple want to sell into those cheap low end markets? Just to please idiot journalists and analysts who group disparate items together?
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #23 of 71
Quote:
Originally Posted by nagromme View Post

If Apple doesn't take the low-end low-feature low-quality low-usage cheapo market by storm, they are doooooomed!! 1smile.gif Why would developers bother making apps for anyone but that end of the market? You know, the end that under-uses their phone, never buys apps, and has no money? Developers love that!

Note that Apple does better with second-time smartphone buyers than first-time. Thus, Apple doesn't need the entry market.

 

It's the netbook argument resurrected.

 

They could be right this time ... maybe. Won't put any money on it.

post #24 of 71
Quote:
Originally Posted by ruel24 View Post

You know, you guys can continue to defend Cook all you want, but as Apple loses marketshare, so too will it eventually lose revenue. It's time for Cook to innovate or get out.

For which comedy companies you used to work for?

Innovation does not come with times. 

post #25 of 71
Quote:
Originally Posted by digitalclips View Post


Lol! And replace him with who exactly?

 

Zombie Steve Jobs I guess.
post #26 of 71
Quote:
Originally Posted by digitalclips View Post


Gain market share of what? Why on earth would Apple want to sell into those cheap low end markets? Just to please idiot journalists and analysts who group disparate items together?

 

No, to please customers with rising incomes.

 

You get your loyal customers as early as you can.  I can see the argument for a BRIC version of an Apple phone and Apple is more than capable of delivering at least something marginally better than others for the same price.  That leaves people like Samsung in a very bad long-term position.  Right now, Apple is allowing people to start with a Samsung phone and chances of grabbing those customers in the future aren't always that great.

 

People forget that the reason why Apple should be worried about Samsung's copying is that people will see a phone like looks like an iPhone but is total crap.  It has issues.  And this first impression will likely colour them.  When they then look at a higher priced Apple product they are likely to think it will be the same, or feel it's not worth the extra amount, so they stick with the devil they know.

post #27 of 71
I really should quit reading these articles cause I become convinced investors have no clue what they are writing about. Apple does not want to own the marketplace, nor should they. If Apple wanted to own 30% of the marketplace, they could. Instead, they focus on great technology and high profit margins to balance themselves appropriately. Samsung will always be on top...what do you expect from a company that sells 80 different models (slight exaggeration)? More models and more marketshare does not always mean better product. I would actually prefer Apple not to make the iPhone 5C as I personally think it will be a negative on their brand. There was good reason they moved away from the plastic Macbooks for aluminum. It makes their brand more exquisite. Market share means little for Apple, although I do believe Tim Cook will bow to investors who otherwise disagree and the de-innovation of Apple will rise to satisfy the investors rather than build great products.
post #28 of 71
While common sense says that it is due to product cycles, this does affect perception. A co-worker (not a tech person at all) recently commented to me that Apple is losing market share because they aren't innovating as quickly as other companies.

This person doesn't even own a smartphone yet and doesn't keep up with tech. He just saw some news in passing, he said

Not saying any of this is accurate, just that perception dictates an individuals reality.
post #29 of 71
Quote:

Originally Posted by AppleInsider View Post

...
 

Gartner

 

From http://www.gartner.com/newsroom/id/2573415

 

Worldwide Smartphone Sales to End Users by Vendor in 2Q13 (Thousands of Units)

Company

2Q13

Units

2Q13 Market Share (%)

2Q12

Units

2Q12 Market Share (%)

Samsung

71,380.9

31.7

45,603.8

29.7

Apple

31,899.7

14.2

28,935.0

18.8

LG Electronics

11,473.0

5.1

5,827.8

3.8

Lenovo

10,671.4

4.7

4,370.9

2.8

ZTE

9,687.6

4.3

6,331.4

4.1

Others

90,213.6

40.0

62,704.0

40.8

Total

225,326.2

100.0

153,772.9

100.0

 

Anyone else see the disparity in the Q2 numbers as first pointed out by bikertwin??

post #30 of 71
Marketshare does matter. Apple is getting trounced. This is why apple is responding by releasing a less expensive phone.
post #31 of 71
Quote:
Originally Posted by nagromme View Post

Note that Apple does better with second-time smartphone buyers than first-time. Thus, Apple doesn't need the entry market.

What happens to all those repeat iPhone buyer's old iPhone? The iPhone user base is multiplying with every release due to hand-me-downs and resales. Eventually those who received a hand-me-down will buy a new iPhone due to loyalty to the brand. I seriously doubt that Android phones get reused nearly as much as iPhones do. Market share is one thing. Brand loyalty is another. Apple receives a much higher customer satisfaction rate than other brands.

Life is too short to drink bad coffee.

Reply

Life is too short to drink bad coffee.

Reply
post #32 of 71
Quote:
Originally Posted by Rogifan View Post

So basically there are a lot of cheap feature phones being replaced by cheap android "smartphones". I'm not sure Apple is too worried about that.

They should be. It is literally a zero sum game. We can argue about experience and we'd agree on most of those points. But don't think for a second that investors (and thus, Apple) aren't concerned.
post #33 of 71
Quote:
Originally Posted by nicholas_hagen View Post

I really should quit reading these articles <<== Please do.
Originally Posted by nicholas_hagen View PostI would actually prefer Apple not to make the iPhone 5C as I personally think it will be a negative on their brand.  <<<=== I will convey this to Mr.Cook.
post #34 of 71
Quote:
Originally Posted by herbapou View Post

 

At some point people will realize they are getting rip off and go else where.  Market shares matters to some degree.

I agree.  At some point, market share does begin to matter, especially from a developer perspective.  This blog post explains it very well.

 

http://ben-evans.com/benedictevans/2013/8/13/defending-ios

post #35 of 71
Quote:
Originally Posted by Shameer Mulji View Post

I agree.  At some point, market share does begin to matter, especially from a developer perspective.  This blog post explains it very well.

 

http://ben-evans.com/benedictevans/2013/8/13/defending-ios

 

Don't you worry about us developers, we know how to calculate our profit sheet and prospects. Android is actually becoming even less profitable with every new fabulous phone.... 

 

5C sales will blow remains of many people's brains out....

 

When 5X comes out, Sanslung will fall from the sky like airplane stalling...


Edited by poksi - 8/14/13 at 8:53am
post #36 of 71
Quote:
Originally Posted by poksi View Post

Don't you worry about us developers, we know how to calculate our profit sheet and prospects. Android is actually becoming even less profitable with every new fabulous phone.... 

5C sales will blow remains of many people brains out....

Thanks for speaking on behalf of all devs. I've had a couple tell me they love developing on Android. Clearly, they were wrong.
post #37 of 71
Quote:
Originally Posted by Gatorguy View Post

There's more detail at Gartner
http://www.gartner.com/newsroom/id/2573415

Yeah. For $1295. The 'newsroom' provides no geographic breakdowns. Pointless.

post #38 of 71
Quote:
Originally Posted by rob53 View Post

What is the difference between a smartphone and a feature phone? Are most of Samsung's smartphones actually feature phones without too much smarts? Are there even any feature phones still being manufactured or has the industry changed everything to smartphones?

Feature phones are usually the clam shell type and are not touchscreen.
post #39 of 71
Looks like Gartner has Others as most popular smartphones beating out Samsung as biggest market share. Most be a very successful business. Similar to tablets market share issues.
post #40 of 71
Quote:
Originally Posted by patrickwalker View Post

No, to please customers with rising incomes.

You get your loyal customers as early as you can.  I can see the argument for a BRIC version of an Apple phone and Apple is more than capable of delivering at least something marginally better than others for the same price.  That leaves people like Samsung in a very bad long-term position.  Right now, Apple is allowing people to start with a Samsung phone and chances of grabbing those customers in the future aren't always that great.

People forget that the reason why Apple should be worried about Samsung's copying is that people will see a phone like looks like an iPhone but is total crap.  It has issues.  And this first impression will likely colour them.  When they then look at a higher priced Apple product they are likely to think it will be the same, or feel it's not worth the extra amount, so they stick with the devil they know.

I agree Apple are wise to bring out a lower end iPhone just as they have Mac Minis and iPod Nanos, however, they are high quality products and not exactly cheap, just low end for Apple. I meant they should, and I am sure they will, keep out of the end of the market dominated by Scamsung and things worthy of being fillings for Christmas crackers.
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
  • Smartphones outsell feature phones for first time, while Apple's iPhone loses market share - Gartner
AppleInsider › Forums › Mobile › iPhone › Smartphones outsell feature phones for first time, while Apple's iPhone loses market share - Gartner