Apple iPhone's global marketshare dips to 12.1 percent on problems in China & Africa

Posted:
in iPhone
While the global smartphone market grew at an accelerated pace in the September quarter, Apple's share of it slipped from 13.6 percent to 12.1 percent year-over-year, according to new research data.




Android devices advanced their lead from 84.1 percent to 87.5, Strategy Analytics said. Platforms beyond Apple and Google's -- such as Windows and Tizen -- collectively shrank from 2.3 percent to just 0.3 percent.

Industry shipments rose 6 percent from 354.2 million units to 375.4 million, the fastest growth in a year. Strategy Analytics linked this to "emerging markets with relatively low smartphone penetration" spread across Asia, Africa, and the Middle East, with India and South Africa in particular being strong points.

Apple iPhone shipments dipped from 48 million to 45.5 million, reportedly because of mediocre performance in China and Africa. Apple CEO Tim Cook once touted China as the company's next major frontier, but while that market is still critical, the company has struggled to compete against rising local phone makers such as Oppo and Huawei.

Despite Android solidifying its control, the platform is facing problems, Strategy Analytics commented. It's becoming "overcrowded" with hundreds of manufacturers, the firm suggested, with few of them making profits. Google's new Pixel phones could also take marketshare away from some of Android's original hardware backers.
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Comments

  • Reply 1 of 60
    Apple still makes far, far more profit per phone than any competitor, but the question remains:  How do you follow the most successful consumer electronics product in history?
    80s_Apple_Guydesignrjony0ration allolliver
  • Reply 2 of 60
    irelandireland Posts: 17,623member
    Anywhere near 10% is amazing considering the price of iPhones—especially the cost outside the US.

    The cheapest iPhone Apple make is $555 in Europe. The cheapest iPhone 7 is $863. In Asia and India and Europe most people simply cannot afford an iPhone. Also Android has improved enough over the years as to be good enough for most people and the majority buy on price. So they buy a few Android phones and eventually maybe get an iPhone and in the meantime those Android numbers add up.

    The best news of all for iPhone users is our ecosystem still seems to be the best. I think now's a good time for Apple to consider releasing that version of iMessage on Android. Best phones, best apps, best add-on-product ecosystem, and then an out of the box internet messaging system we can contact the whole 100% on. Without relying on Facebook Inc., Google Inc. or lousy SMS. Then you have a super out of the box messaging experience. And they need to greatly simplify iMessage signup too. I think it should work through your phone number. It's less hassle to signup then.

    Despite some Apple diehards saying it'd be a bad move for Apple I disagree. And getting hooked on iMessage makes it very easy and tempting for an Android user to want an iPhone to get the full Apple experience and their messages just show up on their new iPhone like magic. That's an awesome experience. It is: we at Apple work so hard on our product and are so confident the experience is better that it's that experience which keeps people here and gets them to switch over. Experience should trump everything.
    edited November 2016 holyonepatchythepiratejony0
  • Reply 3 of 60
    tzeshantzeshan Posts: 1,980member
    There is a simple way to improve the iOS to make it more useful globally.  I can tell Apple if Apple can pay me as a consultant. 
  • Reply 4 of 60
    irelandireland Posts: 17,623member
    Apple still makes far, far more profit per phone than any competitor, but the question remains:  How do you follow the most successful consumer electronics product in history?
    Follow in what sense? Making a product that tries to beat a product in a different category on sales seems like an awful way to run a company that designs experiences. They never made iPhone to get 10% of the market. They made it because everyone has phones and they thought they could contribute a great one. If they sell a car it'll be for the same reasons. And timing-wise it's a great point in history for a mega-wealthy hi-technology company who cares about design, experiences and the environment to move into that space. It fits perfectly why Apple are a product company in my view. And I don't for one movement think Apple are just working on the OS or autonomous driving and not working on a physical vehicle of their own branding.
    edited November 2016 ration alradster360lollivercaliSpamSandwich
  • Reply 5 of 60
    maestro64maestro64 Posts: 4,599member
    Yep 12% of the widget part count market, but 90% of the profits and the other 88% of the widget makers are all splitting 10% of the profits. Who's wallet would you like to have?
    ration alradster360lolliver
  • Reply 6 of 60
    Trusting the ChiComs to play fair was a mistake on Tim's part. Not a fireable one or anything, just a mistake. 
    davenSpamSandwich
  • Reply 7 of 60
    maestro64maestro64 Posts: 4,599member
    tzeshan said:
    There is a simple way to improve the iOS to make it more useful globally.  I can tell Apple if Apple can pay me as a consultant. 

    I beat your solution is to give up profits to sell more widgets... When are the Business Schools in this country going to stop teaching it is always better to sell more at a lower price verses selling less are a far high price with larger margins. Since everyone in the market are leveraging the exact same supplier chain, Apple cost are no higher or less than another else's. No one had the cost advantage because they are making more of something. In some cases Apple unit costs are higher since Apple pays to ensure supply of parts.
    tmaylolliver
  • Reply 8 of 60
    metrixmetrix Posts: 250member
    I believe the Chinese knockoff market has a lot to do with the lower market share and don't see the problem going away ever. Take a look at this copycat, i can guarantee these are all over the place and this is just one vendor.
    http://www.technobuffalo.com/2016/06/24/iphone-7-plus-leaked-photos-chinese-knockoff/
    bb-15
  • Reply 9 of 60
    irelandireland Posts: 17,623member
    Trusting the ChiComs to play fair was a mistake on Tim's part. Not a fireable one or anything, just a mistake. 
    Huh.
  • Reply 10 of 60
    blastdoorblastdoor Posts: 1,930member
    Too bad, but not much to be done other than for Apple to keep making the best iPhones they can. 

    I didn't think removing the 3.5 mm jack from the iPhone 7 was a well-timed move, but I don't think that's the explanation for this drop in marketshare. Also, other than that one decision about the audio jack, I think the iPhone 7 (and especially the 7+) is a great product -- definitely the best all-around smartphone on the market. 

    I think two things need to happen in China and India, and these things just take time:

    1. Incomes need to rise
    2. Consumers needs to learn through experience that "8 cores!" (and other vapid marketing nonsense) is not what defines a great smartphone. 
    ration al
  • Reply 11 of 60
    irelandireland Posts: 17,623member
    metrix said:
    I believe the Chinese knockoff market has a lot to do with the lower market share and don't see the problem going away ever. Take a look at this copycat, i can guarantee these are all over the place and this is just one vendor.
    http://www.technobuffalo.com/2016/06/24/iphone-7-plus-leaked-photos-chinese-knockoff/
    Site tried to stop me leaving. Yuck!
    SpamSandwich
  • Reply 12 of 60
    thedbathedba Posts: 476member
    In other words more and more citizens of South East Asia and Africa are buying "smartphones" but they're not iPhones. 
    If average/median incomes do rise in those countries, Apple will certainly start having a greater presence there. In fact they're already starting in India. Give it time and they'll expand.
    They don't need to sell the most, just the most desirable and pricy. Leave the cutthroat low margin business to others. 
    igorskytyler82ration allollivercali
  • Reply 13 of 60
    Oh look, another useless market share statistic achieved by lumping high-end iPhones in with $50-100 garbage devices sold at grocery stores and 7-11's.

    Why are these cowards/analysts afraid of publishing a market share graph broken out by price of device? Then we'd see who's really on top.
    igorskynolamacguyration allolliverSpamSandwich
  • Reply 14 of 60
    igorskyigorsky Posts: 422member
    tzeshan said:
    There is a simple way to improve the iOS to make it more useful globally.  I can tell Apple if Apple can pay me as a consultant. 

    Not sure if this comment is a joke or not, but it's pretty funny regardless.

    On another note, there probably are a lot of delusional people out there who think they understand the smartphone business better than Apple.
    edited November 2016 patchythepiratelollivercali
  • Reply 15 of 60
    tzeshantzeshan Posts: 1,980member
    maestro64 said:
    tzeshan said:
    There is a simple way to improve the iOS to make it more useful globally.  I can tell Apple if Apple can pay me as a consultant. 

    I beat your solution is to give up profits to sell more widgets... When are the Business Schools in this country going to stop teaching it is always better to sell more at a lower price verses selling less are a far high price with larger margins. Since everyone in the market are leveraging the exact same supplier chain, Apple cost are no higher or less than another else's. No one had the cost advantage because they are making more of something. In some cases Apple unit costs are higher since Apple pays to ensure supply of parts.
    No, your bet is lost. My idea is an improvement on Siri. 
  • Reply 16 of 60
    tyler82tyler82 Posts: 869member
    Similar to the Windows vs. Mac OS market share. Sounds about right. 
    ration allolliver
  • Reply 17 of 60
    igorskyigorsky Posts: 422member
    Oh look, another useless market share statistic achieved by lumping high-end iPhones in with $50-100 garbage devices sold at grocery stores and 7-11's.
    This should really be the only response to any article that attempts to analyze iPhone market share.
    lolliver
  • Reply 18 of 60
    iPhone: celebrating 10 years of "doomed."
    lostkiwinolamacguyirelandration allolliverSpamSandwich
  • Reply 19 of 60
    brucemcbrucemc Posts: 1,528member
    I expect that Apple will continue to sell more iPhones (when looking at the 2-3 year views - not necessarily in one specific quarter, or every year), as they have upgraders from an expanding base, and some volume of newcomers & switchers (more than those who leave).  It is likely single digit growth though per year, on average.

    And I expect their market share to continue to go down slowly, as the growth comes from the low end.  They need to keep building the best phone they can.  Apple's approach will continue to see them have the vast majority of profit, and still record growth in both revenue and profit.

    Revenue growth in any appreciable amount (% wise) will come from new product categories (wearables, transportation, medical, etc).
    lolliver
  • Reply 20 of 60
    holyoneholyone Posts: 389member
    I also feel Apple's stores could go a long way in selling the Apple prestige and desirebility, I mean I get the low income and high prices but I live in South Africa and there are like three Ferrari shops I know of and not a single Apple brick and mortar store in the hole of Africa ?, maybe in time, sucks though
    cali
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