Apple holds on to 47% share in declining 'premium' smartphone market
Apple managed to secure 47% of the global "premium" smartphone market during the March quarter, but falling iPhone shipments helped bring down the segment's overall performance and make Samsung more prominent.
The "premium" market shrank 8% year-over-year, Counterpoint Research said in a report issued this week. Apple, it noted, saw iPhone units slide 20% in the same timeframe.
"According to our analysis, the trend of users holding onto their iPhones for longer has affected Apple's shipments," wrote Counterpoint's Varun Mishra. "The replacement cycle for iPhones has grown to over three years, on an average, from two years. On the other hand, substantial design changes in the Galaxy S10 series and the better value proposition it offers compared to high-end iPhones helped Samsung close the gap to Apple in the global premium segment."
Samsung's marketshare grew to to 25%, something Counterpoint linked to the S10 being available at three different price points.
The other factor impacting the premium market was China, Mishra continued.
"Our estimates suggest that almost half of the decline in the global premium segment in Q1 2019 was due to the sluggish Chinese market," he said. "However, we expect that as 5G begins to commercialize in the future, the premium segment will grow. In 2019 and 2020, all the 5G devices are expected to launch in the premium segment."
Apple CEO Tim Cook has previously blamed iPhone woes not just on China, but on weak demand in other developing countries.
Huawei claimed a 16% share in Q1, but is expected to suffer in coming months from choking U.S. trade bans, mostly to the benefit of Apple and Samsung.
Counterpoint tangentially noted that Apple was the leading premium vendor in North America, western Europe, and the Middle East and Africa.
The "premium" market shrank 8% year-over-year, Counterpoint Research said in a report issued this week. Apple, it noted, saw iPhone units slide 20% in the same timeframe.
"According to our analysis, the trend of users holding onto their iPhones for longer has affected Apple's shipments," wrote Counterpoint's Varun Mishra. "The replacement cycle for iPhones has grown to over three years, on an average, from two years. On the other hand, substantial design changes in the Galaxy S10 series and the better value proposition it offers compared to high-end iPhones helped Samsung close the gap to Apple in the global premium segment."
Samsung's marketshare grew to to 25%, something Counterpoint linked to the S10 being available at three different price points.
The other factor impacting the premium market was China, Mishra continued.
"Our estimates suggest that almost half of the decline in the global premium segment in Q1 2019 was due to the sluggish Chinese market," he said. "However, we expect that as 5G begins to commercialize in the future, the premium segment will grow. In 2019 and 2020, all the 5G devices are expected to launch in the premium segment."
Apple CEO Tim Cook has previously blamed iPhone woes not just on China, but on weak demand in other developing countries.
Huawei claimed a 16% share in Q1, but is expected to suffer in coming months from choking U.S. trade bans, mostly to the benefit of Apple and Samsung.
Counterpoint tangentially noted that Apple was the leading premium vendor in North America, western Europe, and the Middle East and Africa.
Comments
So they define > $400 as Premium. Considering the ASP of an iPhone is in the high $700 range, I find that metric laughable. Especially when they claim the S10 range helped Samsung capture a greater share of the "premium" market when the S10 starts at $749 and goes well over $1,000 and Samsung ASP is usually in the mid $200 range.
Apple's installed base continues to grow.
This isn't news to anyone that follows Apple.
The funny thing is Rogi bashed Apple for mentioning services in the past. Her interpretation was covering sales numbers up with services talk.
Yes, I've been roaming the forums this long. This was back in 2014 when no one gave a sh** about Apple services.
Apples user base has been growing since 2007. Pre-2007 if you count iPod/Mac.
The problem with these inaccurate charts and stats is they count "sales" as users. Knockoff iPhones are replaced on average, every 2 years with some as little as every 3 months. Whereas iPhones and iPads last longer, on average lasting 5 years and many people STILL using an iPad 2 from 8 years ago!!
I know someone who replaces their knockoff iPhone every 2 months for another throwaway 50 buck ad machine. We saw the same thing happen in PCs.
"Declining sales" for Apple just means stronger customer loyalty as they're holding onto their quality products longer, naturally. We know this as a fact as Apple reports user base growth.
Prices of iPhones have actually gone down. Don't believe the anti-Apple propaganda.