Apple holds on to 47% share in declining 'premium' smartphone market

Posted:
in iPhone edited June 19
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.

iPhone XR


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.

Counterpoint Q1 premium smartphone data


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

  • Reply 1 of 8
    Had to check their numbers to see how they defined "premium" to get Samsung and the others so high on their list.

    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.
    StrangeDaysgenovelleAppleExposedwatto_cobrajony0
  • Reply 2 of 8
    rogifan_newrogifan_new Posts: 4,194member
    How should premium be defined? And now that Apple is becoming a services business doesn’t market share and install base matter more than how much of the so-called premium market is captured?
  • Reply 3 of 8
    FolioFolio Posts: 639member
    My guess is the $400 definition is used so the high priced but heavily discounted (eg BOGO) phones like Pixel make the cut.
    FileMakerFellerwatto_cobrajony0
  • Reply 4 of 8
    tmaytmay Posts: 3,959member
    How should premium be defined? And now that Apple is becoming a services business doesn’t market share and install base matter more than how much of the so-called premium market is captured?
    https://appleinsider.com/articles/19/06/19/iphones-china-install-base-grew-for-fifth-month-in-a-row-in-may

    Apple's installed base continues to grow.

    This isn't news to anyone that follows Apple.
    AppleExposedwatto_cobra
  • Reply 5 of 8
    StrangeDaysStrangeDays Posts: 8,588member
    How should premium be defined? And now that Apple is becoming a services business doesn’t market share and install base matter more than how much of the so-called premium market is captured?
    Oops, there you go repeating that myth again. Apple isn't "pivoting" or switching to services. They are adding services to their already insane hardware sales. Even Gruber corrects his guests when they misstate this simple fact. Adding isn't the same as switching-to.
    ericthehalfbeeronnAppleExposedFileMakerFellerwatto_cobrajony0
  • Reply 6 of 8
    AppleExposedAppleExposed Posts: 1,538unconfirmed, member
    How should premium be defined? And now that Apple is becoming a services business doesn’t market share and install base matter more than how much of the so-called premium market is captured?
    Oops, there you go repeating that myth again. Apple isn't "pivoting" or switching to services. They are adding services to their already insane hardware sales. Even Gruber corrects his guests when they misstate this simple fact. Adding isn't the same as switching-to.

    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.

    tmay said:
    How should premium be defined? And now that Apple is becoming a services business doesn’t market share and install base matter more than how much of the so-called premium market is captured?
    https://appleinsider.com/articles/19/06/19/iphones-china-install-base-grew-for-fifth-month-in-a-row-in-may

    Apple's installed base continues to grow.

    This isn't news to anyone that follows Apple.

    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.
    watto_cobrajony0
  • Reply 7 of 8
    litolooplitoloop Posts: 22member
    apple probably knows that consumers will hold on to their phones longer. which is why the changes in software or hardware is just incremental year after year, and the price of their phones have gone higher. nothing to be alarmed. all factored in. apple is always interested in the long game rather than quick bucks.
    watto_cobra
  • Reply 8 of 8
    AppleExposedAppleExposed Posts: 1,538unconfirmed, member
    litoloop said:
    apple probably knows that consumers will hold on to their phones longer. which is why the changes in software or hardware is just incremental year after year, and the price of their phones have gone higher. nothing to be alarmed. all factored in. apple is always interested in the long game rather than quick bucks.

    Prices of iPhones have actually gone down. Don't believe the anti-Apple propaganda.
    watto_cobra
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