iPhone sales stay strong amid worldwide smartphone market slowdown

Posted:
in iPhone edited August 2015
Apple's iPhone continues to gain marketshare despite a slowing global smartphone market during the second quarter, doing particularly well in China -- where the overall market actually shrunk by 4 percent year-over-year.




Chinese iPhone sales rose 68 percent to 11.9 million units in the second calendar quarter of this year, according to Gartner research estimates published on Thursday. That rate was stronger than Apple's worldwide growth of 36 percent, which put it up 2.4 percentage points to a 14.6 percent share. Global smartphone sales were up 13.5 percent to 330 million, the slowest growth since 2013.

Huawei, though, saw even faster growth than Apple at 46.3 percent, pushing its share from 6.1 to 7.8 percent. The company did well in both its Chinese homeland and in foreign markets.

Samsung's share dropped 4.3 points to 21.9 percent, leaving it in the lead but significantly impacted by the iPhone, Gartner said. The iPhone's effect on rival high-end devices was in fact claimed to have forced competitors to realign their middle and low-end portfolios, in turn leading to price battles and discounts to make room for new devices in the second half of the year.

Android remained the lead smartphone platform, but saw its share dip slightly from 83.8 percent to 82.2. Windows slid from 2.8 percent to 2.5 percent, while BlackBerry fell from 0.7 percent to 0.3.

Gartner, as with a number of other research entities, credited Apple's success on the decision to boost screen sizes for the iPhone 6 and 6 Plus to 4.7 and 5.5 inches, respectively. Prior to 2014, no iPhone had a screen bigger than 4 inches, despite the competition approaching or exceeding the 5-inch mark.
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Comments

  • Reply 1 of 43
    lkrupplkrupp Posts: 5,811member

    Interesting that financial pundits are yammering about something they call the ‘death cross’ on their precious charts and graphs that predict a collapse of AAPL. Wall Street doesn’t like Apple, never has, and never will. It’s amazing that AAPL is at the level it is given this inbred disdain for the company. Perhaps it’s all because Apple doesn’t play by the rules?

  • Reply 2 of 43
    singularitysingularity Posts: 1,325member
    sog35 wrote: »
    Apple should go private.

    Stock down another $3 today.  Even though they are DOMINATING the industry and growing iPhone sales and selling prices at an incredible rate.

    Stock is down 16% after reporting record breaking earnings and 40% EPS growth YoY.

    Apple investors need to face the facts:  Wall Street will never value Apple fairly.  

    I think its time for Tim Cook to float a rumor that Apple is seriously thinking of taking the company private.
    It will never happen. Stop living in a dream world
  • Reply 3 of 43
    mike1mike1 Posts: 1,588member
    Quote:

    Originally Posted by lkrupp View Post

     

    Interesting that financial pundits are yammering about something they call the ‘death cross’ on their precious charts and graphs that predict a collapse of AAPL. Wall Street doesn’t like Apple, never has, and never will. It’s amazing that AAPL is at the level it is given this inbred disdain for the company. Perhaps it’s all because Apple doesn’t play by the rules?


    Apple does what is best for the company long term and that doesn't always align with the interests of wall street that focus on the short term. I don't pretend know all the ramifications of or difficulties in taking Apple private, but philosophically, it's the right candidate for that because of the diametrically opposed goals of the company and a large part of the investor community.

  • Reply 4 of 43
    totaltotal Posts: 83member

    yes, i will wait until it fall below $100 and then i will buy again! Just look at NASDAQ overall, there is still almost no correction visible if you plot 5Y chart for example, which makes room for further decline.

  • Reply 5 of 43
    schlackschlack Posts: 671member
    Apple is super discounted at it's current price. Even at 150 it would be a pretty solid value compared to most of it's competition. At least when comparing it's stock price to company earnings/cash/revenue.

    But, competition is definitely heating up and Apple will have to work hard to stay on top. Hope they can keep it up for awhile longer.
  • Reply 6 of 43
    Quote:

    Originally Posted by sog35 View Post

     

    Apple should go private.

     

    Stock down another $3 today.  Even though they are DOMINATING the industry and growing iPhone sales and selling prices at an incredible rate.

     

    Stock is down 16% after reporting record breaking earnings and 40% EPS growth YoY.

     

    Apple investors need to face the facts:  Wall Street will never value Apple fairly.  

     

    I think its time for Tim Cook to float a rumor that Apple is seriously thinking of taking the company private.




    1. Not enough money.

    2. That would make the stock jump up, not drop.

  • Reply 7 of 43
    Apple to discontinue the use of iPads in store for product information...too confusing for customers.

    http://************/2015/08/18/apple-retail-2015-revamp-ipods-ipads/

    (Replace the asterisks with 9to5Mac".com")
  • Reply 8 of 43
    sirlance99sirlance99 Posts: 1,070member
    sog35 wrote: »
    It can happen. It will take some innovative thinking.  But that's Apple for you.

    1. Cook needs to announce that they will stop the buyback and dividend immediately and focus on getting enough cash to take the company private.

    2. Cook needs to change their quarterly reporting.  No more iPhone units.  No more iPad units.  Nothing.  No more guidance.  Just revenue and profit for hardware and software.  That's it.  Wall Street does not deserve anything except the bare minimum from Apple.

    3.  These two steps could make the stock tank to $90.  Which would be great for Apple's efforts to go private.  If the stock explodes upward then that's fine also.  Maybe Wall Street will finally treat Apple with respect with the constant threat of going private.


    So lets say the stock dumps to $90.  The market cap will be about $500 billion.  Apple generates $60 billion a year in free cash flows.  They hold $150 billion in net cash right now.  Do the math.   In 6 years they would have enough cash to buy themself. 

    Once Apple has enough cash they can make an offer to stockholders:

    1. Keep your shares and have them converted to private equity shares or

    2. Sell your shares at a 30% premium.

    This will go to a vote and I'm pretty sure most shareholders will approve this move to go private.  

    Small investors who opted to have their shares converted to private shares will be organized into holding companies.  

    Twice a year there will be a market where private shares can be sold and bought.  Small shareholders can sell their shares to the holding company.   Small shareholders who want to buy shares can buy them through a holding company.  The reason a holding company is neccessary is because of specific rules regarding being an accredited investor.  New investors must hold the shares for at least 2 years. 


    What will this do?

    1.  Stop Wall Street bullshit.
    2.  Stop the option market from manipulating Apple's stock price.
    3.  Allow Apple to focus on long term growth instead of quarterly targets set by Wall Street
    4.  Stop wall street traders and machines from stealing Wealth from long term Apple investors
    5.  Allow Apple to make much larger dividend payments
    6.  Allow Apple to pay employees based on Apple's profits instead of Wall Streets manipulation of stock price

    Just think of it this way.   If you invest in private equity in Apple you will recoup your entire investment in SIX YEARS.  After that its 100% profits.  You won't find any company like that on the face of the earth.  

    Yet, none of this will happen at all.
  • Reply 9 of 43
    Quote:

    Originally Posted by sog35 View Post

     

     

    It can happen. It will take some innovative thinking.  But that's Apple for you.

     

    1. Cook needs to announce that they will stop the buyback and dividend immediately and focus on getting enough cash to take the company private.

     

    2. Cook needs to change their quarterly reporting.  No more iPhone units.  No more iPad units.  Nothing.  No more guidance.  Just revenue and profit for hardware and software.  That's it.  Wall Street does not deserve anything except the bare minimum from Apple.

     

    3.  These two steps could make the stock tank to $90.  Which would be great for Apple's efforts to go private.  If the stock explodes upward then that's fine also.  Maybe Wall Street will finally treat Apple with respect with the constant threat of going private.

     

     

    So lets say the stock dumps to $90.  The market cap will be about $500 billion.  Apple generates $60 billion a year in free cash flows.  They hold $150 billion in net cash right now.  Do the math.   In 6 years they would have enough cash to buy themself. 

     

    Once Apple has enough cash they can make an offer to stockholders:

     

    1. Keep your shares and have them converted to private equity shares or

     

    2. Sell your shares at a 30% premium.

     

    This will go to a vote and I'm pretty sure most shareholders will approve this move to go private.  

     

    Small investors who opted to have their shares converted to private shares will be organized into holding companies.  

     

    Twice a year there will be a market where private shares can be sold and bought.  Small shareholders can sell their shares to the holding company.   Small shareholders who want to buy shares can buy them through a holding company.  The reason a holding company is neccessary is because of specific rules regarding being an accredited investor.  New investors must hold the shares for at least 2 years. 

     

     

    What will this do?

     

    1.  Stop Wall Street bullshit.

    2.  Stop the option market from manipulating Apple's stock price.

    3.  Allow Apple to focus on long term growth instead of quarterly targets set by Wall Street

    4.  Stop wall street traders and machines from stealing Wealth from long term Apple investors

    5.  Allow Apple to make much larger dividend payments

    6.  Allow Apple to pay employees based on Apple's profits instead of Wall Streets manipulation of stock price

     

    Just think of it this way.   If you invest in private equity in Apple you will recoup your entire investment in SIX YEARS.  After that its 100% profits.  You won't find any company like that on the face of the earth.  


    So you are advocating Apple deliberately tank its own stock? Methinks they would be in a wee bit of trouble !!

  • Reply 10 of 43
    Looks like AAPL is heading toward $105 in short order and may even broach $100 by next week.

    I'll never know for sure since I have him blocked, but Soggy will certainly have to find a new haunt after he self-bans for a year. Good thing PatPatPat took him up on his moronic bet.

    There's no way AAPL reaches $150 by end of year at this point unless both Samsung and Google go bankrupt.
  • Reply 11 of 43
    Smartphone buying trends will favour Apple especially as the market saturates and matures.
  • Reply 12 of 43
    levilevi Posts: 343member
    sog35 wrote: »
    Apple should go private.

    Stock down another $3 today.  Even though they are DOMINATING the industry and growing iPhone sales and selling prices at an incredible rate.

    Stock is down 16% after reporting record breaking earnings and 40% EPS growth YoY.

    Apple investors need to face the facts:  Wall Street will never value Apple fairly.  

    I think its time for Tim Cook to float a rumor that Apple is seriously thinking of taking the company private.

    No one would believe it because it is all but impossible (given their current valuation)
  • Reply 13 of 43
    levilevi Posts: 343member
    sog35 wrote: »
    Apple should go private.

    Stock down another $3 today.  Even though they are DOMINATING the industry and growing iPhone sales and selling prices at an incredible rate.

    Stock is down 16% after reporting record breaking earnings and 40% EPS growth YoY.

    Apple investors need to face the facts:  Wall Street will never value Apple fairly.  

    I think its time for Tim Cook to float a rumor that Apple is seriously thinking of taking the company private.

    Also keep in mind the massive run up in the price over 2014 and strong early gains in 2015. Last I checked it is still outperforming the broader market, which many of us are benefiting from. If Apple goes private then you or I can't own the stock.
  • Reply 14 of 43
    Quote:

    Originally Posted by sog35 View Post

     
    Quote:
    Originally Posted by singularity View Post





    It will never happen. Stop living in a dream world

     

    It can happen. It will take some innovative thinking.  But that's Apple for you.

     

    1. Cook needs to announce that they will stop the buyback and dividend immediately and focus on getting enough cash to take the company private.

     

    2. Cook needs to change their quarterly reporting.  No more iPhone units.  No more iPad units.  Nothing.  No more guidance.  Just revenue and profit for hardware and software.  That's it.  Wall Street does not deserve anything except the bare minimum from Apple.

     

    3.  These two steps could make the stock tank to $90.  Which would be great for Apple's efforts to go private.  If the stock explodes upward then that's fine also.  Maybe Wall Street will finally treat Apple with respect with the constant threat of going private.

     

     

    So lets say the stock dumps to $90.  The market cap will be about $500 billion.  Apple generates $60 billion a year in free cash flows.  They hold $150 billion in net cash right now.  Do the math.   In 6 years they would have enough cash to buy themself. 

     

    Once Apple has enough cash they can make an offer to stockholders:

     

    1. Keep your shares and have them converted to private equity shares or

     

    2. Sell your shares at a 30% premium.

     

    This will go to a vote and I'm pretty sure most shareholders will approve this move to go private.  

     

    Small investors who opted to have their shares converted to private shares will be organized into holding companies.  

     

    Twice a year there will be a market where private shares can be sold and bought.  Small shareholders can sell their shares to the holding company.   Small shareholders who want to buy shares can buy them through a holding company.  The reason a holding company is neccessary is because of specific rules regarding being an accredited investor.  New investors must hold the shares for at least 2 years. 

     

     

    What will this do?

     

    1.  Stop Wall Street bullshit.

    2.  Stop the option market from manipulating Apple's stock price.

    3.  Allow Apple to focus on long term growth instead of quarterly targets set by Wall Street

    4.  Stop wall street traders and machines from stealing Wealth from long term Apple investors

    5.  Allow Apple to make much larger dividend payments

    6.  Allow Apple to pay employees based on Apple's profits instead of Wall Streets manipulation of stock price

     

    Just think of it this way.   If you invest in private equity in Apple you will recoup your entire investment in SIX YEARS.  After that its 100% profits.  You won't find any company like that on the face of the earth. 


    Boy I dunno about this.

     

    Seems pretty fanciful and far fetched to me.

     

    So Apple has gotten beat up a little bit in the market lately. It's no big deal if you are in for the long term (which I think you are, but I could be wrong). These dips are a buying opportunity more than anything since Apple will likely be a strong company far longer than any of us will be alive.

     

    Of course there are those who might say the opposite. Past performance does not indicate future results. Apples best years are behind them, etc. etc. That is all garbage in my opinion.

     

    I think the 'Apple should go private' trope is as tired as the 'Apple is doomed' trope.

     

    It's fun to think about, but it's not going to happen. Not any time soon anyway.

  • Reply 15 of 43
    jungmarkjungmark Posts: 6,507member
    schlack wrote: »
    But, competition is definitely heating up and Apple will have to work hard to stay on top. Hope they can keep it up for awhile longer.

    Competition was always there. I see nothing different now than before.
  • Reply 16 of 43
    jungmarkjungmark Posts: 6,507member
    Analysts will fake numbers to spin Apple negative.
  • Reply 17 of 43
    mike1mike1 Posts: 1,588member

    How much of the decline is Apple and how much is the market as a whole taking a dump lately???

  • Reply 18 of 43
    Quote:

    Originally Posted by mike1 View Post

     

    How much of the decline is Apple and how much is the market as a whole taking a dump lately???


    This is a fair point.

     

    Seems like people are nervous about what the Fed is going to do with interest rates.

  • Reply 19 of 43
    mike1 wrote: »
    How much of the decline is Apple and how much is the market as a whole taking a dump lately???

    Since AAPL is one of the most widely held stocks in the world, market fluctuations certainly will have more of an impact. Honestly, I've seen absolutely no benefit to Apple being added to the Dow.
  • Reply 20 of 43
    512ke512ke Posts: 760member

    If you own AAPL, then you are committing to riding the financial world's scariest and most thrilling roller coaster (of any huge market cap stock*).

     

    If I could buy more right now, I would. The Apple Watch will continue to grow. iPhone sales are holding up amazingly well far after the launch of the 6. China sales are doing great. Apple Music is doing well. Apple Pay is growing. Apple TV is about to enter the app/gaming market. And the 6S is about to come out, echoing the huge success of the 5S and 4S.

     

    Will the media play up fears about all the above good news? Yes. Will analysts and places like BusinessInsider keep spreading bad news? Yes. But that news is false, and those fears are unfounded. So lol, soon or later, AAPL is gonna go up.

     

    I'm patient personally. I don't mind waiting a year for that to happen.

     

    We were up at the top of the roller coaster rise, now we gotta go down, but we'll go back up even higher.

     

    Just don't buy the stock if you're gonna need the money within 2 years... preferably, 5.

     

    That's my long winded and totally biased personal conjecture anyway haha.

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