Despite sales growth, Apple's iPhone loses market share - report

Posted:
in iPhone edited January 2014
Though iPhone sales grew 18 percent in the fourth quarter, the overall market saw even greater growth, leaving Apple with a smaller market share during the holiday season, a new study has found.



The data from ABI Research, via The Wall Street Journal, shows that Apple's smartphone market share dropped from 18.1 percent in the third quarter of 2009 to 16.6 percent in the fourth quarter. This despite the fact that Apple sold 8.7 million iPhones in the fourth quarter -- an 18 percent increase from the previous quarter, and Apple's best quarter ever in terms of total sales.



However, as noted by similar research from Strategy Analytics, Apple also saw a year-over-year increase in market share, growing from 10.8 percent in the fourth quarter of 2008 to an estimated 16.4 percent at the end of 2009 -- just 0.2 percent off from the ABI Research findings.



ABI's Michael Morgan told the Journal that the iPhone could be suffering a case of "Razr burn," referring to Motorola's popular cell phone which dominated the sales charts for years but lost favor when its design went unchanged. But the report quickly discredited that notion.



"That of course is a little rich," the report said of Morgan's commentary. "The California device maker still enjoys profit margins among the industry?s highest. And the attention it commands is unrivaled (see the frenzy around the iPad unveiling last week)."



The overall smartphone market grew 26 percent in the fourth quarter, according to ABI, thanks to increased sales of Google's Android mobile operating system and Nokia increasing sales by 4.6 million. The quarter also saw the high-profile introduction of the Motorola Droid smartphone.



"2009 may have started with a whimper but by (the fourth quarter of) 2009 the global mobile handset market ended with a pretty reasonable bang," said Jake Saunders, vice president for forecasting at ABI Research. "We estimate 336.5 million handsets were shipped in 4Q-2009, up 15.1 percent (quarter over quarter)."



Nokia remains the overall mobile phone dominant market leader with 37.7 percent, though its share of the smartphone market has dropped significantly in recent years. Nokia and Apple are currently engaged in a number of lawsuits filed in court and with the International Trade Commission over allegations of patent infringement on both parties behalves.







In second place was Samsung, which captured 20.5 percent of the global phone market in the fourth quarter of 2009. LG took 10.1 percent; Sony-Ericsson was in fourth with 4.3 percent; and Motorola took 3.6 percent. Despite its significant slice of the much-smaller smartphone market, Apple did not register in the top five of total mobile phone sales.
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Comments

  • Reply 1 of 157
    Verizon's calling....................don't be stupid Apple.......
  • Reply 2 of 157
    Sort the camera out and add a flash, make sure you don't run out of iPhones so get your supply levels right, and get on more carriers.



    There are a lot of copycats out there that will add additional features to make their phones seem better, that's usually rubbish - but Apple really need to focus on the camera, it's a weakness and something people pick up on a lot! I'm not saying the camera is the most important thing, but there are many other who think it is!
  • Reply 3 of 157
    Quote:
    Originally Posted by AppleInsider View Post


    Nokia remains the overall mobile phone dominant market leader with 37.7 percent



    Everyone uses all of Nokia's "convergence devices" - smartphones and mobile computers - in calculating their market share. Nokia also breaks out their Eseries and Nseries phones - 10.7 million this quarter, 8.9 million last quarter - which is their smart phones.



    If someone thinks I am wrong - please point out why.



    http://www.nokia.com/about-nokia/fin...mation/q4-2009
  • Reply 4 of 157
    saareksaarek Posts: 1,108member
    I know that many Americans would love a CDMA iPhone, but the rest of planet earth is happy with GSM, with multiple carriers in many countries the growth should explode in 2010!



    No point making a CDMA phone really, not enough market for it.
  • Reply 5 of 157
    rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by AppleInsider View Post


    ABI's Michael Morgan told the Journal that the iPhone could be suffering a case of "Razr burn," referring to Motorola's popular cell phone which dominated the sales charts for years but lost favor when its design went unchanged. But the report quickly discredited that notion.



    "That of course is a little rich," the report said of Morgan's commentary.



    Actually that is not too far fetch or too "rich"... I don't own any of the three previous iPhone models but I would be curious what Apple/Steve Jobs means regarding the next iPhone will be A+ upgrade to see if there is some different form factor or what Apple has in mind. Of course there is only so much one can do I guess when it comes to designing a phone that needs a touchscreen to operate the phone and associated apps that come with it or are purchased via the app store.



    But I am willing to wait and see what Steve has up his sleeve regarding any iPhone redesign and whether there will be multiple US Cellular Carriers! Who knows maybe this iPhone revision will cause me to jump ship of my "just a phone" to a "smart phone"! Maybe...
  • Reply 6 of 157
    benicebenice Posts: 382member
    Poor Apple has to cope with being lumped into the other category.



    If they're sensible they'll see to it that they start showing in the overall market share spots as well.



    In their original (2007) intro of the phone they talked about the value (or a goal) of %1 of overall market share, but I'd be interested to know what they are now. On this reading it must be something less than 3.6% overall.
  • Reply 7 of 157
    Quote:
    Originally Posted by saarek View Post


    I know that many Americans would love a CDMA iPhone, but the rest of planet earth is happy with GSM, with multiple carriers in many countries the growth should explode in 2010!



    No point making a CDMA phone really, not enough market for it.



    That's one of the silliest things I've read today.
  • Reply 8 of 157
    and soon I hope. It will be interesting to see what SJ thinks an A+ upgrade amounts to. Start the rumors.
  • Reply 9 of 157
    vinney57vinney57 Posts: 1,162member
    The comparison with the razr is of course completely spurious. It was popular because of the form-factor, the OS was as shit as always. The iPhone is a platform and functionality increases hour by hour. What the figures show is that there is still a huge potential upside for Apple as people move into the (loosely defined) smartphone market.
  • Reply 10 of 157
    lkrupplkrupp Posts: 6,812member
    Quote:
    Originally Posted by LouisTheXIV View Post


    Verizon's calling....................don't be stupid Apple.......



    In your dreams. Not going to happen. Please get off the strupid Verizon kick, will you.



    And yes, Apple is doomed, DOOMED I tell you!
  • Reply 11 of 157
    tenobelltenobell Posts: 7,014member
    Selling the iPhone on Verizon won't help with marketshare against all phones.



    Quote:
    Originally Posted by LouisTheXIV View Post


    Verizon's calling....................don't be stupid Apple.......



  • Reply 12 of 157
    saareksaarek Posts: 1,108member
    Quote:
    Originally Posted by Strawberry View Post


    That's one of the silliest things I've read today.



    I don't suppose you'd like to quantify your remark? Why would they spend time and resources making a phone that would only ship to one carrier in the US when they can build just one device that works in any country in the world, why introduce a phone that can only be used in the US and can't even be taken on holiday with you?
  • Reply 13 of 157
    MacProMacPro Posts: 18,155member
    Quote:
    Originally Posted by saarek View Post


    I don't suppose you'd like to quantify your remark? Why would they spend time and resources making a phone that would only ship to one carrier in the US when they can build just one device that works in any country in the world, why introduce a phone that can only be used in the US and can't even be taken on holiday with you?



    Good luck getting a sensible answer. American centrism dominates 50% of the population here. That half don't think outside the box ... or perhaps just don't think. Sorry, I am rarely contentious, I will await the flames lol.
  • Reply 14 of 157
    Quote:
    Originally Posted by saarek View Post


    I don't suppose you'd like to quantify your remark? Why would they spend time and resources making a phone that would only ship to one carrier in the US when they can build just one device that works in any country in the world, why introduce a phone that can only be used in the US and can't even be taken on holiday with you?



    Because, despite the fact that the iPhone has good worldwide sales, the truth of the matter is that the majority of iPhones sold are *still* from the U.S. To take this even further then, why deny the LARGEST CARRIER IN THE US the potential to DOUBLE APPLE'S SALES?



    I'm just amazed that ANYONE would think adding VZW is a bad idea. If you don't like it, then don't buy it. It's that simple.



    w00master
  • Reply 15 of 157
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by mickeymantle View Post


    and soon I hope. It will be interesting to see what SJ thinks an A+ upgrade amounts to. Start the rumors.



    A4 processer was the first thing that came to my mind.
  • Reply 16 of 157
    saareksaarek Posts: 1,108member
    Quote:
    Originally Posted by w00master View Post


    Because, despite the fact that the iPhone has good worldwide sales, the truth of the matter is that the majority of iPhones sold are *still* from the U.S. To take this even further then, why deny the LARGEST CARRIER IN THE US the potential to DOUBLE APPLE'S SALES?



    I'm just amazed that ANYONE would think adding VZW is a bad idea. If you don't like it, then don't buy it. It's that simple.



    w00master



    Currently you're correct regarding overall sales but that is not likely to last for long, international sales are rapidly growing.



    Consider Apples business model, currently they build one iPhone, they are all made in Asia somewhere, when a new iPhone comes out they have trouble matching demand, as it stands right now they place an order and the device can be shipped anywhere, your suggestion will split resources.



    On top of that you will now have two iPhones on the Market, it will cause confusion, people will buy the phone and then in 1-2 years won't be able to move (remember most people see a phone as a phone, CDMA gsm etc means nothing to them) why split your product line.



    I accept that America tends to move behind the rest of the world in terms of phones, it took America years to move to digital, years to bring out SMS and even longer to start accepting the gsm standard.



    In a short sighted view you are correct, in the long term you are not and I bet apple is looking at the long term.
  • Reply 17 of 157
    ltmpltmp Posts: 204member
    Quote:
    Originally Posted by w00master View Post


    Because, despite the fact that the iPhone has good worldwide sales, the truth of the matter is that the majority of iPhones sold are *still* from the U.S. To take this even further then, why deny the LARGEST CARRIER IN THE US the potential to DOUBLE APPLE'S SALES?



    I'm just amazed that ANYONE would think adding VZW is a bad idea. If you don't like it, then don't buy it. It's that simple.



    w00master



    I agree. While it might cost a large fortune to create a CDMA phone, and it's only market would be one carrier in the US, and only for a couple of years, that's still hundreds of millions in profits.



    I expect that if Verizon and Apple could come to terms, the phone is already designed and ready for production.
  • Reply 18 of 157
    roos24roos24 Posts: 170member
    Quote:
    Originally Posted by w00master View Post


    I'm just amazed that ANYONE would think adding VZW is a bad idea. If you don't like it, then don't buy it. It's that simple.



    w00master



    I strongly believe that nobody at Apple would loose one second of sleep over this information.



    Apple is a leader, not a follower, and their goal is not to sell the most phones (or computers, iPads etc.) but to sell products that make customers happy.



    Apple has its strategy set out for years to come and I am convinced that they are right on track. So, no, I don't believe that they will add VZW just to become number 1 in sales. I would be very disappointed in Apple if I would see a VZW phone come June.
  • Reply 19 of 157
    Quote:
    Originally Posted by Strawberry View Post


    That's one of the silliest things I've read today.



    That as it may, it is also one the truest things I've read today. Almost NOBODY uses CDMA, and it doesn't really have any resale value.
  • Reply 20 of 157
    Quote:
    Originally Posted by saarek View Post


    I don't suppose you'd like to quantify your remark? Why would they spend time and resources making a phone that would only ship to one carrier in the US when they can build just one device that works in any country in the world, why introduce a phone that can only be used in the US and can't even be taken on holiday with you?



    We recall of course that Apple allegedly brought the iPhone to Verizon first - which means at that moment Apple was prepared to either A) build a CDMA-only phone for the Verizon network, or B) build a "world phone" device with full GSM/CDMA supporting chipset. The second seems more likely. So at the time there was not a worldphone chipset that did not suck battery life down rapidly. That has changed with the introduction of Qualcomm's multistandard chipsets based on their Snapdragon platform. These chipsets combine GSM/CDMA standards into one unit on a smaller nm footprint with significantly lower power demand, and supporting all the usual features: integrated HSPA+, GPS, Bluetooth, full high definition video recording and playback, Wi-Fi and mobile TV technologies.



    IF Apple likes the chip technology offered by Qualcomm (over and above their own PASemi chips for example) then this becomes a practical approach. The question is not whether Apple can do it - I'm willing to bet they have had at least a CDMA prototype in operation in the labs since the beginning. The question is if they WANT to do it.
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