New quarterly data ranks iPhone high in China & US despite challenging conditions
iPhone loyalty is at its strongest point in the U.S. since 2012, and despite numerous obstacles in China, Apple has managed to reclaim a position as the bestselling smartphone brand in that region, according to a new December-quarter research report from Kantar Worldpanel ComTech.
The company now has 27.1 percent share of the Chinese smartphone market, and the top three selling models, Kantar said on Wednesday. The iPhone is facing threats from a number of directions, including a troubled local economy and Android phonemakers like Huawei and Xiaomi. During a conference call on Tuesday, Apple CEO Tim Cook admitted that the company is beginning to face a tougher time in Greater China, particularly Hong Kong.
The company's U.S. share reached 39.1 percent during the quarter. Android, however, made progress in both the U.S. and the "big five" European markets (Great Britain, Germany, France, Italy, and Spain), advancing to 59 and 71 percent, respectively.
Apple's customer acqusition from Android also declined year-over-year from 13 percent to 11 percent. Simultaneously, the contribution of first-time smartphone buyers to iPhone sales dropped from 20 percent to 11 percent.
Althouh Apple recorded its most financially successful quarter ever on Tuesday, iPhone sales grew compartively little year-over-year. The company in fact guided to its first-ever iPhone sales decline in the March quarter, though it has tried to assuage fears by pointing out the decline would be relative to unexpectedly high sales from a year ago.
The company now has 27.1 percent share of the Chinese smartphone market, and the top three selling models, Kantar said on Wednesday. The iPhone is facing threats from a number of directions, including a troubled local economy and Android phonemakers like Huawei and Xiaomi. During a conference call on Tuesday, Apple CEO Tim Cook admitted that the company is beginning to face a tougher time in Greater China, particularly Hong Kong.
The company's U.S. share reached 39.1 percent during the quarter. Android, however, made progress in both the U.S. and the "big five" European markets (Great Britain, Germany, France, Italy, and Spain), advancing to 59 and 71 percent, respectively.
Apple's customer acqusition from Android also declined year-over-year from 13 percent to 11 percent. Simultaneously, the contribution of first-time smartphone buyers to iPhone sales dropped from 20 percent to 11 percent.
Althouh Apple recorded its most financially successful quarter ever on Tuesday, iPhone sales grew compartively little year-over-year. The company in fact guided to its first-ever iPhone sales decline in the March quarter, though it has tried to assuage fears by pointing out the decline would be relative to unexpectedly high sales from a year ago.
Comments
And not sure how to read Cook/Maestri's newish narrative regarding services and 1B installed base. Almost sounds like there is a little less obsession going into ASP and maybe a shift into halo/expansion of services & profits.
I wouldn't be surprised if Apple dives a bit into lower cost tier products...as long as there is a strategy to increase revenue via services.
Apple ecosystem is still incredibly strong. Something that almost all analysts/pundits miss.
If Apple releases a "C" model mid-cycle this would disrupt the whole industry. I've been saying it for a while now. It would give competitors a lot less breathing room while offering a lower cost model. This would keep the media, fans and competitors on their toes close to year round.
Government and school segments are reliant on limited funds. Apple has as good as lost the school market to Chromebooks. Enterprise would be a good bet.
China is really slowing fast. Their actual rate of growth may be only half the official rate: "Beijing reported earlier this month that its 2015 economic growth came in at 6.9 percent — a 25-year low. Most outside experts have expressed doubt about the veracity of the government economic data, instead suggesting that the real growth rate was more likely between 3 and 4.5 percent."
Despite Cook being upbeat on India where growth is around 8%, Apple have had to cut prices a couple times to generate any sales. It will likely be quite some time before per capita income increases there to make Apple prices an option for any but a very small minority.
2016 looks to be shaping up to be a really miserable year for much of the world, not just Apple.
Apple has a huge brand. It can easily win with a cheaper (but not cheap model) because of the brand, brands are actually more important in poorer developing countries for two reasons - one, as a status symbol and two because if the device is relatively more expensive to your income then you don't spend that money on trash. You (and this seems paradoxical until you think about it) can't afford to. And android is an anti-brand. Most, not all, android devices are trash. It's harder for the top end android phones to make up in their specific manufacturing brand for the general aura of cheapness surrounding the OS.
Put it it this way, Apple is 27% in China of the market with devices that are probably in the top ten percentile in price. It probably dominates that market 8-1. It has to worry about diluting the brand a bit by going down market (but less so if there are clear differentials in the cheaper model like a smaller screen) but it will probably dominate whatever mid-high segment it enters.
As as for China's economic problems, same rules apply to Android. Apple will gain share with a 4" model even if the over all market stalls or reverses. It mightn't do as well as it could have done absent the economic problems but better than without the 4".