Apple's holiday quarter hit market share hard, but still second-largest smartphone produce...

Posted:
in iPhone edited February 21
Apple saw the biggest decline in smartphone sales in the fourth quarter of 2018 out of all major device vendors, according to Gartner's analysis of the global smartphone market, with the iPhone's reduced sales also causing Apple's market share to diminish compared to the same period in 2017.

The iPhone XR and the iPhone XS Max, launched just before the fourth quarter.
The iPhone XR and the iPhone XS Max, launched just before the fourth quarter.


Apple's holiday quarter results revealed iPhone revenue was down 15 percent compared to last year, but unit figures were not provided by the company under its new reporting policy. According to data produced by Gartner, the number of units did go down but at a lower percentage of 11.8 percent, which is believed to be the worst quarterly decline for the company since the first quarter of 2016.

Gartner claims iPhone unit sales reached 64.5 million in the quarter, down from 73.2 million in the fourth quarter of 2017. For 2018 as a whole, iPhone sales are reportedly down 2.7 percent, resulting in a total of just over 209 million units.

The double-digit decline for the quarter is said to be the worst among the top five global smartphone vendors, with Samsung and Xiaomi seeing smaller reductions while Huawei and Oppo enjoying year-on-year growth. In terms of market share, Apple maintained its position of second place, but saw its position weaken from a 17.9 percent share in Q4 2017 to 15.8 percent of the market in Q4 2018.

Gartner's table of global smartphone unit sales for Q4 2018
Gartner's table of global smartphone unit sales for Q4 2018


As a whole, the entire smartphone market did see some growth from last year, but by barely 0.1 percent. In Q4 2018, the total units across all vendors reached 408.4 million, marginally up from the 40.8 million saw in the same period in 2017.

It is believed Apple saw weaker iPhone demand in most regions, with the exception of North America and mature Asia-Pacific markets. Greater China saw the biggest declines, with market share dropping year-on-year from 14.6 percent to 8.8 percent.

"Apple has to deal not only with buyers delaying upgrades as they wait for more innovative smartphones, but it also continues to face compelling high-price and mid-price smartphone alternatives from Chinese vendors," advised Gartner senior research director Anshul Gupta. "Both these challenges limit Apple's unit sales growth prospects."

For the full year of 2018, Apple's 209 million units puts it in second place, again behind Samsung, but it may not be that way for long. Huawei saw a massive 52 million-unit increase in sales between 2017 and 2018, bringing its full-year total to 202.9 million, bringing it close to Apple and within rage of overtaking the iPhone producer if sales trends continue on their present course.

Global smartphone sales is believed by many analysts to have slowed down for some time, with 2019 shaping up to be a tough year for some vendors. According to Credit Suisse, smartphone production in the first quarter is forecast to fall to a level last observed in 2013.

Comments

  • Reply 1 of 10
    AppleExposedAppleExposed Posts: 849unconfirmed, member
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    cornchipjony0
  • Reply 2 of 10
    avon b7avon b7 Posts: 3,754member
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.
    edited February 21 muthuk_vanalingam
  • Reply 3 of 10
    AppleExposedAppleExposed Posts: 849unconfirmed, member
    avon b7 said:
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.


    Explain where the "I won't get an iPhone because it's too expensive" cliché comes from?


    Yes iPhone 6s outruns most knockoffs. This is why Samsung compared their S9 to iPhone 6 from 2014.

  • Reply 4 of 10
    avon b7avon b7 Posts: 3,754member
    avon b7 said:
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.


    Explain where the "I won't get an iPhone because it's too expensive" cliché comes from?


    Yes iPhone 6s outruns most knockoffs. This is why Samsung compared their S9 to iPhone 6 from 2014.

    I just explained why and it isn't a cliché. Tim Cook authorised price cuts and trade in promotions for that reason.
  • Reply 5 of 10
    AppleExposedAppleExposed Posts: 849unconfirmed, member
    avon b7 said:
    avon b7 said:
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.


    Explain where the "I won't get an iPhone because it's too expensive" cliché comes from?


    Yes iPhone 6s outruns most knockoffs. This is why Samsung compared their S9 to iPhone 6 from 2014.

    I just explained why and it isn't a cliché. Tim Cook authorised price cuts and trade in promotions for that reason.


    So you've never heard anyone say they can't afford an iPhone when looking at the XS Max price?


    Again, Apple still sells older iPhones and that's a fact.

  • Reply 6 of 10
    avon b7avon b7 Posts: 3,754member
    avon b7 said:
    avon b7 said:
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.


    Explain where the "I won't get an iPhone because it's too expensive" cliché comes from?


    Yes iPhone 6s outruns most knockoffs. This is why Samsung compared their S9 to iPhone 6 from 2014.

    I just explained why and it isn't a cliché. Tim Cook authorised price cuts and trade in promotions for that reason.


    So you've never heard anyone say they can't afford an iPhone when looking at the XS Max price?


    Again, Apple still sells older iPhones and that's a fact.

    Yes, it's a fact. How could any prospective iPhone purchaser not know cheaper, older phones are available?

    Yes, I've heard plenty of people say they can't afford XS Max. And plenty that couldn't afford X and the 8 series.

    The situation isn't new. It's one of the reasons why iPhone sales have not increased in years.
  • Reply 7 of 10
    AppleExposedAppleExposed Posts: 849unconfirmed, member
    avon b7 said:
    avon b7 said:
    avon b7 said:
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.


    Explain where the "I won't get an iPhone because it's too expensive" cliché comes from?


    Yes iPhone 6s outruns most knockoffs. This is why Samsung compared their S9 to iPhone 6 from 2014.

    I just explained why and it isn't a cliché. Tim Cook authorised price cuts and trade in promotions for that reason.


    So you've never heard anyone say they can't afford an iPhone when looking at the XS Max price?


    Again, Apple still sells older iPhones and that's a fact.

    Yes, it's a fact. How could any prospective iPhone purchaser not know cheaper, older phones are available?

    Yes, I've heard plenty of people say they can't afford XS Max. And plenty that couldn't afford X and the 8 series.

    The situation isn't new. It's one of the reasons why iPhone sales have not increased in years.


    You're moving the goalposts and ignoring the point that people act like the latest iPhone is the only option to buy. Especially the most expensive option: XS Max.


    Apple needs to remind people that they can still buy an older model that runs circles around the spyware crap.

  • Reply 8 of 10
    The battery replacement program helped cement the mindset of keeping an older device because they don’t see the need to upgrade. 

    It really doesnt matter what kind of features the new devices have. Customers were not willing to spend the money when you mention the total cost vs. the monthly cost if you financed it. 

    Once Apple figured out that they have to sell the iPhone like a car and talk about monthly payments is when sales started picking up again. Sure the increase of money for your trade was a big help, they should have done this 6 months ago. 

    Lets see these pundits spin a $2000 folding phone as revolutionary. 
  • Reply 9 of 10
    AppleExposedAppleExposed Posts: 849unconfirmed, member
    The battery replacement program helped cement the mindset of keeping an older device because they don’t see the need to upgrade. 

    It really doesnt matter what kind of features the new devices have. Customers were not willing to spend the money when you mention the total cost vs. the monthly cost if you financed it. 

    Once Apple figured out that they have to sell the iPhone like a car and talk about monthly payments is when sales started picking up again. Sure the increase of money for your trade was a big help, they should have done this 6 months ago. 


    Big time, but this is good and bad.

    Bad because no new sale, good because it further cements the idea that Apple produces quality products, more people using services etc.
  • Reply 10 of 10
    avon b7avon b7 Posts: 3,754member
    avon b7 said:
    avon b7 said:
    avon b7 said:
    A few things to note:

    Apple reported 75 million new iPhone users. So iPhone overall rose.

    More people in developing countries can only afford 100 buck knockoffs which helped Sammy.


    What Apple needs to do is heavily show people that old iPhones are available at a cheaper price. I can't count how many people think ONLY the latest iPhones are for sale, which makes the "iPhone is too expensive" meme ridiculous.
    Consider iPhone 6s is still faster than almost all knockoffs at the same price point.
    That's impossible. People only have to visit the online store to see that cheaper phones are available.

    The issue is that many people in the market for a new phone, would actually prefer a new phone and not last year's, or the previous year's, or older.

    That isn't an unreasonable desire.

    If you add to that the feature set, current iPhones just don't have that 'edge' which newer (and often cheaper) phones have.

    Not even the latest phones. We can 'justify' that by claiming the latest refresh was the equivalent to an 's' cycle but competitors aren't doing the same and Apple is seeing the results of that policy combined with other factors.


    Explain where the "I won't get an iPhone because it's too expensive" cliché comes from?


    Yes iPhone 6s outruns most knockoffs. This is why Samsung compared their S9 to iPhone 6 from 2014.

    I just explained why and it isn't a cliché. Tim Cook authorised price cuts and trade in promotions for that reason.


    So you've never heard anyone say they can't afford an iPhone when looking at the XS Max price?


    Again, Apple still sells older iPhones and that's a fact.

    Yes, it's a fact. How could any prospective iPhone purchaser not know cheaper, older phones are available?

    Yes, I've heard plenty of people say they can't afford XS Max. And plenty that couldn't afford X and the 8 series.

    The situation isn't new. It's one of the reasons why iPhone sales have not increased in years.


    You're moving the goalposts and ignoring the point that people act like the latest iPhone is the only option to buy. Especially the most expensive option: XS Max.


    Apple needs to remind people that they can still buy an older model that runs circles around the spyware crap.

    No goalposts were move and I didn't ignore your claims. I simply said your claims couldn't be correct and explained why.

    People are not acting like the new iPhones are the only ones to buy. They are the only new iPhones available and are all more expensive than the models they replace.

    People are fully aware of the older models.
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