Apple's iPad, iPhone face flagging growth as conventional markets reach saturation
Apple faces an uphill battle when it comes to growing sales for its flagship mobile devices as fewer and fewer consumers in traditionally strong markets like the U.S. and Western Europe are left without smartphones or tablets, according to two reports released on Wednesday.
Sales of Apple's iPhone grew just 13 percent year-over-year while the iPad fared only slightly better at 13.5 percent despite record total shipments of both products. Those numbers trail growth in the overall market by 21 percent and 37.1 percent, respectively.
In comparison, sales of Android-based smartphones --?which are also said to be feeling the pinch of market saturation -- grew at a blistering 62 percent rate, besting the market by some 21 percent. Android's continued emergence may be attributed to the proliferation of low-cost Android handset vendors whose devices have been shown to be especially popular among less-affluent consumers in emerging markets like Southeast Asia and Latin America.
Tablets, meanwhile, have followed a similar path.
"It's becoming increasingly clear that markets such as the U.S. are reaching high levels of consumer saturation and while emerging markets continue to show strong growth this has not been enough to sustain the dramatic worldwide growth rates of years past," said Tom Mainelli, tablet research director for market research firm IDC.
Apple remains the dominant tablet vendor with a slice of the market nearly twice as large as its nearest competitor, but the Cupertino, Calif.-based company has seen its growth in the sector outstripped by less costly alternatives.
Chinese manufacturer Lenovo, for instance, grew by 325 percent in the quarter. IDC attributes this growth almost entirely to Lenovo's low-end lineup, saying that the company's "access to the Chinese whitebox manufacturing infrastructure has helped it drive more low-priced tablet products into the market."
Sales of Apple's iPhone grew just 13 percent year-over-year while the iPad fared only slightly better at 13.5 percent despite record total shipments of both products. Those numbers trail growth in the overall market by 21 percent and 37.1 percent, respectively.
In comparison, sales of Android-based smartphones --?which are also said to be feeling the pinch of market saturation -- grew at a blistering 62 percent rate, besting the market by some 21 percent. Android's continued emergence may be attributed to the proliferation of low-cost Android handset vendors whose devices have been shown to be especially popular among less-affluent consumers in emerging markets like Southeast Asia and Latin America.
Tablets, meanwhile, have followed a similar path.
"It's becoming increasingly clear that markets such as the U.S. are reaching high levels of consumer saturation and while emerging markets continue to show strong growth this has not been enough to sustain the dramatic worldwide growth rates of years past," said Tom Mainelli, tablet research director for market research firm IDC.
Apple remains the dominant tablet vendor with a slice of the market nearly twice as large as its nearest competitor, but the Cupertino, Calif.-based company has seen its growth in the sector outstripped by less costly alternatives.
Chinese manufacturer Lenovo, for instance, grew by 325 percent in the quarter. IDC attributes this growth almost entirely to Lenovo's low-end lineup, saying that the company's "access to the Chinese whitebox manufacturing infrastructure has helped it drive more low-priced tablet products into the market."
Comments
"Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets."
Ok. And?
We still need to upgrade our devices.
Is this another thinly-veiled demand for The Next Big Thing from Apple? I'm sure whatever it is, is on its way. Sheesh.
If stock is going higher, headlines are wonderful and if stock moves lower, headlines match that!
UNLESS you realize people upgrade their phones every couple of years, and people are still being born in all these countries...
""It's becoming increasingly clear that markets such as the U.S. are reaching high levels of consumer saturation and while emerging markets continue to show strong growth this has not been enough to sustain the dramatic worldwide growth rates of years past," said Tom Mainelli, tablet research director for market research firm IDC."
Ok. And?
We still need to upgrade our devices.
Is this another thinly-veiled demand for The Next Big Thing from Apple? I'm sure whatever it is, is on its way. Sheesh.
This article is talking about growth.
So... everybody has a phone. Then they upgrade.
Are they using both phones? Did the market grow? If you answered "No" to both of these questions then, answer this, "Did Apple grow?".
This is the new reality.
7% unit growth for iPhone in Christmas quarter is a slap in the face to reality.
Apple needs to sell a NEW mid range phone ASAP ($350-$400)
A mid range phone from Apple would be better priced in the $449 to $499 range. The question is would they then cannibalize more sales from the 5s or steal sales from Android.
Um...China.
^this^
meh... how much do those people buying the low end devices spend 1) on those devices and 2)on aftermarket expenditures such as apps, music and accessories. Yea, I'm guessing that all those numbers mean nothing when it comes to actually making money and last I checked Apple is a business... aka, they don't just do this 'cause it's fun. They didn't get to be the most valuable tech company in the world by chasing the bottom (and the sales figures for the IP5S vs C are another example of that).
How do you figure the sales numbers for the 5c prove anything? They charged $549 which is only $100 less than the 5s for a phone that is plastic, lacks the latest technology like 64-bit, touchID and all the other improvements on the 5s. Of course it was not going to sell well. If they want to compete in the mid range then offer it at a price those people can afford or don't bother and go back to selling last years model for $100 cheaper. I think Apple is scared to death of losing sales for their premium model which is why they refuse to either lower the price to a more reasonable $449-$499 range at least. Another differentiator could have been giving it an A7 but one that is clocked slower and offering the 5c as 16/32GB options while the 5s was 32/64/128GB. That along with TouchID, a better camera, and the metal finish would have been enough to differentiate them while still making the 5c far more appealing.
I have at least three upgrades and or new additions in the immediate future in my family. Two iPhone 4 upgrades - likely one to 5s and one to 5c with a possible net new iPad mini in the mix.
Please email Tim Cook -- that should really put his mind at ease!
Apple needs to become a private company.
Mmm... I wonder what the long-term job prospects are for a "tablet research director".
Apple is doomed!
Please email Tim Cook -- that should really put his mind at ease!
That is in addition to the 5c and 5s and MacBook Pro I bought late last year - the point is that any data collected on how many devices people already have or how many have recently been sold does not necessarily predict how many will be purchased in the future. Any trends that can be observed are based on what has happened and or speculation about what might happen and while the past is fixed the future is not.
That is in addition to the 5c and 5s and MacBook Pro I bought late last year - the point is that any data collected on how many devices people already have or how many have recently been sold does not necessarily predict how many will be purchased in the future. Any trends that can be observed are based on what has happened and or speculation about what might happen and while the past is fixed the future is not.
That is why Tim and his minions make the big bucks -- planning their production is quite a tricky business. Although some here claim, with some justification, that the job he is doing is only maybe worth $100MM, tops, not $400MM.
This is a perfect example of how Statistics lie, They trying to show that Lenovo is growing faster than anyone so they are better, they make this statement in a article which talks about a saturated market, which is probably a true statement since everyone who plans to buy have bough at the particular price point. But Lenovo could have sold 1 last year and 325 this year and had a growth of 325%, so which number are you more in pressed with, selling 325 and 325% growth or 26M and 10% growth, which company do you want to work for.
before anyone goes nuts, I know Lenovo sold more than 325 units, but when you numbers are small in a big world small increases can be shown as large % if you do not know the numbers behind the %, remember statistician use the % sign to hide the real numbers and they do not want you looking at the guy behind the curtain.