Apple iPhone's global marketshare dips to 12.1 percent on problems in China & Africa
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.
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.
Comments
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.
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.
http://www.technobuffalo.com/2016/06/24/iphone-7-plus-leaked-photos-chinese-knockoff/
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.
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.
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.
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.
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).