IDC: Apple's iPhone sheds European marketshare in Q1, pushed out of top 5 in India

Posted:
in iPhone edited January 2014
A pair of reports from market research firm IDC on Tuesday showed the iPhone lost ground in Western Europe during the first quarter of 2013, while Android devices bumped Apple's handset out of the top-five in India over the same period.

According to IDC's European Mobile Phone Tracker, the iPhone's share of the region's smartphone market fell to 20 percent, a year-over-year drop of 11 percent. Samsung boosted its share to 45 percent, growing 31 percent compared to the first quarter of 2012. Apple's 20 percent share was good enough for second place, while next-closest competitor Sony held 10 percent of the market.

It should be noted that the IDC estimates shipments, not sales, meaning a substantial number of units counted may still be in supply channels.

IDC
Source: IDC


Apple's dip may be attributed to an overall slowdown in smartphone sales as shipments increased 12 percent year on year to 31.6 million units, the lowest rate of growth since the firm began tracking the mobile phone market in 2004. Another likely contributor is a rough economic climate, which could bring pause to those considering a premium handset like the iPhone.

According to IDC's European mobile devices research director Francisco Jeronimo, the region is now in a "second wave" of smartphone adoption. The first wave was fueled by users who wanted to buy devices that would fill their needs, and were able to afford the performance. The second wave will be driven by customers with little need for such functionality.

"These new users are looking to replace their current feature phones with another feature phone, as smartphones are fancy gadgets that they don't feel the need to have. However, when they go to a phone shop most of the options available are smartphones only; their friends, colleagues and family may have smartphones and are always talking about the latest apps, and the cheapest smartphones they note are most likely to be as low in price as the last feature phone they bought," Jeronimo said. "With a small push from sales people, the sale is almost guaranteed. But they will buy one of the cheapest smartphones as they still see no value for money."

This may be why manufacturers like LG and Sony boosted their European marketshare by 380 percent and 100 percent year-to-year, respectively.

Overall mobile phone shipments dropped 4.2 percent year-over-year.

iPhone in India

As for the burgeoning Indian market, The Times of India reports Samsung to be in command of that market as well, with Apple nudged out of the top-five device makers as cheaper Android handsets held a staggering 90 percent marketshare.

India


"Apple has always been a niche player in the country," said IDC senior market analyst Manasi Yadav. "Apple numbers in Q4 of 2012 were exceptional but their shipments actually saw a dip in Q1 of 2013 as per our numbers."

Domestic companies Micromax and Karbonn took second and third place in shipment volumes, holding around 19 percent and 11 percent of the market, respectively.

Apple did make an appearance in the top-five in terms of value, however, as the iPhone continues to be exceedingly profitable compared to Android devices. The company came in fifth behind Samsung, Micromax, Nokia and Sony.

The report is somewhat in contrast with a recent report from Credit Suisse, which estimated iPhone sales in India to have grown 400 percent from February to May, a number identical to IDC's own shipment estimates from February. That boost was attributed to aggressive pricing strategies in the country, including student discounts and monthly installment programs, among others.

According to IDC, the Indian smartphone market grew 24 percent in the first quarter of 2013.
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Comments

  • Reply 1 of 108
    And with that, the concern trolls have their bad news to "worry" about.
  • Reply 2 of 108
    quadra 610quadra 610 Posts: 6,756member
    They also maintained their position in the rankings.
  • Reply 3 of 108
    ifij775ifij775 Posts: 470member
    It sounds like the European market is basically a big win for the lowest price option. I don't think Apple could compete even if it sold an iPod with a data connection that could only make VoIP calls
  • Reply 4 of 108
    vadaniavadania Posts: 425member

    Quote:

    Originally Posted by AppleInsider View Post


    iPhone in India

    As for the burgeoning Indian market, The Times of India reports Samsung to be in command of that market as well, with Apple nudged out of the top-five device makers as CHEAPER Android handsets held a staggering 90 percent marketshare.


     


    So I'm guessing this is not caused by deciding not to incorporate a larger screen...

  • Reply 5 of 108
    timmydaxtimmydax Posts: 284member
    At this point, smartphone share really becomes meaningless if people are using them as feature phones.

    Maybe an iPhone mini can disrupt this somewhat, but it's rather unnecessary for apple to compete in that market.
  • Reply 6 of 108
    larryalarrya Posts: 581member
    E
    vadania wrote: »
    So I'm guessing this is not caused by deciding not to incorporate a larger screen...

    Even cheap Android phones have larger than 4" screens. In all honesty I don't know what's on the market in India, but the "free" AT&T phones are 4.3" (LG Escape, Pantech Flex). Prepaid phones, too (Samsung Galaxy Express - 4.5" and $249). iOS is far superior to Android, but new customers won't realize this and get the phone they can read text on or press buttons more easily on. These are missed opportunities for Apple.
  • Reply 7 of 108
    rayzrayz Posts: 814member
    And with that, the concern trolls have their bad news to "worry" about.

    What's a "concern troll"?
  • Reply 8 of 108
    matrix07matrix07 Posts: 1,993member


    Look like somebody tried to push the stock below $400 in the past couple of days for psychological effect but failed. I hope this is the work of Apple's buy-back money.

  • Reply 9 of 108
    vadaniavadania Posts: 425member

    Quote:

    Originally Posted by LarryA View Post



    E

    Even cheap Android phones have larger than 4" screens. In all honesty I don't know what's on the market in India, but the "free" AT&T phones are 4.3" (LG Escape, Pantech Flex). Prepaid phones, too (Samsung Galaxy Express - 4.5" and $249). iOS is far superior to Android, but new customers won't realize this and get the phone they can read text on or press buttons more easily on. These are missed opportunities for Apple.


    I wholeheartedly agree.  Sadly, I know very little of India also.  I was making a little jibe.  I would ask you to remember that in the U.S. we're desensitized about the actual phone cost.  I was thinking, perhaps misguided, that they were not subsidized there.  Only from what I have read.  So are the examples you quoted really "free" there? (going beyond the average consumers perception of free)  Are the larger screen phones really less expensive?


     


    However I must admit I do like the larger screens.  Just not too big...  Some of them look like T.V.'s!

  • Reply 10 of 108
    vadaniavadania Posts: 425member

    Quote:

    Originally Posted by matrix07 View Post


    Look like somebody tried to push the stock below $400 in the past couple of days for psychological effect but failed. I hope this is the work of Apple's buy-back money.



    Yea, I'm not happy.  I bought a bunch at $425.  I actually watched it go up to $460 and then drop below $400.


     


    One of the few times I made a bad buy.  ...or didn't sell when I should have.

  • Reply 11 of 108
    Isn't ISC the same firm that forecast the total demise of Apple and the iPhone a year or two ago?
  • Reply 12 of 108
    tallest skiltallest skil Posts: 43,399member
    rayz wrote: »
    What's a "concern troll"?

    Nice to see gwmac voicing his willful ignorance.

    A concern troll is one who posts under the guise of actual concern at a decision Apple has made, but whose actual purpose is to simply inject the seed of doubt in Apple by the act of posting itself.
  • Reply 13 of 108
    Auto corrected from IDC.
  • Reply 14 of 108
    blackbookblackbook Posts: 1,361member
    This study confirms in my mind the reasoning behind a lower cost iPhone.

    In the US its not needed but around the world Apple is in characteristically losing ground.

    My hope at this point is that the low cost iPhone will be something groundbreaking. Not just the rumored iPhone 5 in a plastic shell.
  • Reply 15 of 108

    Quote:

    Originally Posted by Vadania View Post


    Yea, I'm not happy.  I bought a bunch at $425.  I actually watched it go up to $460 and then drop below $400.


     


    One of the few times I made a bad buy.  ...or didn't sell when I should have.



    C'mon.  Apple stock isn't going to stay below $425.  I'm afraid you're going to have to wait for the new iPhones to be introduced.  I'm buying around the $400 mark, but for all I know it could go lower at the end of the financial quarter.  I'm really not all that concerned.  The analysts are on an Apple witch hunt and they're always looking for bad signs.  Apple will fare no worse than any other company when it comes to actual revenue and profits.  Just remember, the further the stock drops, the more stock Apple can buy back.  I don't think you made a mistake except maybe you bought too early.  However, I'm sure the stock will go back up over $460 by the end of the year.

  • Reply 16 of 108


    The supposed dip in sales in India isn't putting any brakes on Apple here. They still are taking out full page ads in papers.


     


    The most recent one I saw was a 4000 rupee buyback for any old notebook or tablet if you buy a new iPad.

  • Reply 17 of 108
    vadaniavadania Posts: 425member

    Quote:

    Originally Posted by Constable Odo View Post


    C'mon.  Apple stock isn't going to stay below $425.  I'm afraid you're going to have to wait for the new iPhones to be introduced.  I'm buying around the $400 mark, but for all I know it could go lower at the end of the financial quarter.  I'm really not all that concerned.  The analysts are on an Apple witch hunt and they're always looking for bad signs.  Apple will fare no worse than any other company when it comes to actual revenue and profits.  Just remember, the further the stock drops, the more stock Apple can buy back.  I don't think you made a mistake except maybe you bought too early.  However, I'm sure the stock will go back up over $460 by the end of the year.



    Thanks!


     


    Just remember that it could go lower, and it could go higher.  (LOL)  Anything further than that and you've gone beyond reality with APPL.  The P/E ratio, proffitabillity, Debt, market saturation and even rumors do NOT affect APPL.


     


    Not a ton in it, but enough to watch and wonder.

  • Reply 18 of 108
    poksipoksi Posts: 481member

    Quote:

    Originally Posted by ifij775 View Post



    It sounds like the European market is basically a big win for the lowest price option. I don't think Apple could compete even if it sold an iPod with a data connection that could only make VoIP calls


     


     


    Nope. Totally wrong. Come to Europe and see what the vast majority of new phones especially with population that frequently buys new ones are. Apple is loosing share on its ground: so-called premium. Considering screen size to be killer feature over here, Apple holds remarkably high market share. Still. Reasons are other features and above all overall quality. Young people being the largest customer don't care so much about either: killer app in Europe is still messaging and every boy and girl will tell you that is easier to type on larger screen, and using Facebook as well.


     


    I can also tell you how it feels on development: my team of iOS developers has grown from 4 to 5 in 2 years and Android team has grown from 0 to 7 in same period. OK, they have more crap to cope with, that is true. It is also true we have more work as before as well, but incomparably to Android team. Bottom line: Android gets used more an more. People buying those phones soon or a later start to use Google's services and get used to crappy interface. Majority of them will find impossible to go to iOS as it was for me impossible to go to Android. They are lost market, not for phones, let us forget about crappy phones once, but for services, for Apple account on Appstore and iTunes. Apple is talking so much about all this but do so little to make it mainstream success. There is only limited amount of money person will spend for such services. To enhance them you need more earning an those are possible with mass only beyond average dollar to be spend per person….


     


    Times when young people just upgraded from iPod to iPhones are all but over. Most of the young people, new smartphone users from this year onward will not even know what the iPod is. They will not choose on legacy, they will also not choose on quality that much. They choose on variety, functionality and on what is hot today. Far East production of everything else has learned them to buy new stuff frequently and that quality is not the most important. 


     


    Year 2013 will be lost year for Apple, known to profit in crises in saturation, they haven't had plan B to cope with 4" retina legacy, or better SJ legacy that brought problems to TC. If it would be for TC himself, he would have put through plan B in last year already, but he has a mentality to fight on other places. I think Apple brass is just not prepared or know how to be a mainstream company. For us, developers, that is a shame, for geeks this is yet another opportunity to fill their empty lives and stay cool in the shadow…

  • Reply 19 of 108
    vadaniavadania Posts: 425member

    Quote:

    Originally Posted by BestKeptSecret View Post


    The supposed dip in sales in India isn't putting any brakes on Apple here. They still are taking out full page ads in papers.


     


    The most recent one I saw was a 4000 rupee buyback for any old notebook or tablet if you buy a new iPad.



    Any chance you could post a pic of the add?  Honestly just because I'm curious.

  • Reply 20 of 108
    poksipoksi Posts: 481member

    Quote:

    Originally Posted by BestKeptSecret View Post


    The supposed dip in sales in India isn't putting any brakes on Apple here. They still are taking out full page ads in papers.


     


    The most recent one I saw was a 4000 rupee buyback for any old notebook or tablet if you buy a new iPad.



     


    Data is mentioned to be for Q1. Are the adds and sales actions perhaps consequence of the dip?

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