iPhone gaining US marketshare, slipping in China & Europe, say March-quarter numbers

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AppleInsiderAppleInsider
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While Apple's iPhone is increasingly ubiquitous in the U.S., the product's share is declining in urban China and the five major European markets, according to new research estimates.

iPhone XR


U.S. iPhone share rose 6.5 percentage points year-over-year to 45.5 percent, Kantar said on Tuesday. European share fell 2 points to 20.1 percent, while China slipped 0.4 points to 21.7 percent.

Apple's strong U.S. performance was credited to the iPhone XR, said to have accounted for over 1 in 10 of every smartphone sold in the country. It also propped up Apple's European sales, for instance topping all smartphones in Great Britain. In Europe as a whole the iPhone XR outsold the iPhone XS and iPhone XS Max combined.

"As smartphone prices rise rapidly, iPhone XR provides Apple with a way to keep its customers with older models continuing to upgrade regularly, and less tempted by the competition," wrote Kantar's Dominic Sunnebo.

In both China and Europe, pressure on Apple came from Chinese brands Huawei and Xiaomi. The company's greatest European competition though is Samsung, and unlike Apple, its bestselling flagship models are the more expensive Galaxy S10 and S10+ rather than the S10e.

Apple is still recovering from a relatively disastrous December quarter which saw iPhone revenue plummet 15 percent year-over-year. This was primarily blamed on China, and since then Apple has instituted price cuts and extended trade-in bonuses to stay competitive.

Common criticisms of Apple have been that its designs have stagnated, and/or that it has raised iPhone prices too far. The entry-level 2018 model, the XR, is $749 in the U.S. and yet more expensive elsewhere -- mid-range Android phones like the OnePlus 6T are meanwhile offering competitive features for less money.

Apple is poised to reveal its official March-quarter earnings on April 30.

Comments

  • Reply 1 of 12
    iOS_Guy80ios_guy80 Posts: 966member
    Research estimates and financial analyst commentary creates buying opportunity.
    cornchip
     1Like 0Dislikes 0Informatives
  • Reply 2 of 12
    avon b7avon b7 Posts: 8,324member
    iOS_Guy80 said:
    Research estimates and financial analyst commentary creates buying opportunity.
    To a degree yes. But what are you buying into?

    Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

    iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will  allow you to see what you are buying into. 

    It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

    I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

    Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

    The Chinese brands in particular are making life hard for Apple.

    Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.
     0Likes 0Dislikes 0Informatives
  • Reply 3 of 12
    minisu1980minisu1980 Posts: 132member
    Any source on this new research? This data seems less doom and gloom than the typical market share reporting on Apple.
     0Likes 0Dislikes 0Informatives
  • Reply 4 of 12
    gatorguygatorguy Posts: 24,769member
    Any source on this new research? This data seems less doom and gloom than the typical market share reporting on Apple.
    Kantar WorldPanel. They deal more in consumer-based surveys for their results. Others such as IDC appear to rely more on various retailers and industry contractors for compiling their estimates. At the end of the day they are all estimates so take your pick of which ones you like and which ones you don't. 
    edited April 2019
    muthuk_vanalingam
     0Likes 0Dislikes 1Informative
  • Reply 5 of 12
    rotateleftbyterotateleftbyte Posts: 1,648member
    With Italy in recession, Germany almost the same, France heading that way and BREXIT in the UK, is there any wonder why sales are down?
    Many people are just not spending money unless they have to.



    albegarc
     0Likes 0Dislikes 1Informative
  • Reply 6 of 12
    GeorgeBMacgeorgebmac Posts: 11,421member
    avon b7 said:
    iOS_Guy80 said:
    Research estimates and financial analyst commentary creates buying opportunity.
    To a degree yes. But what are you buying into?

    Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

    iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will  allow you to see what you are buying into. 

    It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

    I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

    Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

    The Chinese brands in particular are making life hard for Apple.

    Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.
    The analysis is complicated by the seemingly universal delusion that Apple's superiority lies in its hardware.  Then, when yet another company matches or exceeds Apple's hardware specs (which is happening increasingly often and on an annual basis) and sales migrate to cheaper but technically equal or superior hardware, panic over Apple's future follows.

    But, Apple's superiority no longer relies on its hardware.   The hardware is merely a vehicle used to deliver Apple's secret sauce:   It's software and ecosystem.  (And, for that, the hardware need only not detract)

    The trouble is:  that software and ecosystem cost a lot of money to develop and maintain.  But, for the most part, Apple buries their cost as part of the hardware cost.   So, Apple puts out a hardware gizmo that several other companies match or beat from a hardware perspective -- but the Apple "hardware" costs 1/3 to 1/2 more.  No wonder why they are losing sales to so called "cheaper" rivals.

    They need to revise their pricing structure and in some way separate the cost of the software and ecosystem from that of the hardware to make the hardware more competitive.   And, by branching out increasingly into "services" I think they are setting the stage to do just exactly that.
    tmayalbegarc
     2Likes 0Dislikes 0Informatives
  • Reply 7 of 12
    frantisekfrantisek Posts: 761member
    There must be some marketing genius at Apple Spain as they managed to gain +35% market over new year. From 10 to 45 % :D. According to Kantar.
     0Likes 0Dislikes 0Informatives
  • Reply 8 of 12
    iOS_Guy80ios_guy80 Posts: 966member
    GeorgeBMac said:
    avon b7 said:
    iOS_Guy80 said:
    Research estimates and financial analyst commentary creates buying opportunity.
    To a degree yes. But what are you buying into?

    Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

    iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will  allow you to see what you are buying into. 

    It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

    I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

    Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

    The Chinese brands in particular are making life hard for Apple.

    Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.
    The analysis is complicated by the seemingly universal delusion that Apple's superiority lies in its hardware.  Then, when yet another company matches or exceeds Apple's hardware specs (which is happening increasingly often and on an annual basis) and sales migrate to cheaper but technically equal or superior hardware, panic over Apple's future follows.

    But, Apple's superiority no longer relies on its hardware.   The hardware is merely a vehicle used to deliver Apple's secret sauce:   It's software and ecosystem.  (And, for that, the hardware need only not detract)

    The trouble is:  that software and ecosystem cost a lot of money to develop and maintain.  But, for the most part, Apple buries their cost as part of the hardware cost.   So, Apple puts out a hardware gizmo that several other companies match or beat from a hardware perspective -- but the Apple "hardware" costs 1/3 to 1/2 more.  No wonder why they are losing sales to so called "cheaper" rivals.

    They need to revise their pricing structure and in some way separate the cost of the software and ecosystem from that of the hardware to make the hardware more competitive.   And, by branching out increasingly into "services" I think they are setting the stage to do just exactly that.
    Spot on about software and ecosystem being baked into hardware price. iOS and native app updates along with Apple Care phone In support are great benefits of the Apple ecosystem. These features are part of the hardware and all come with a price and I hope they continue to add it into the cost of hardware. Services and iCloud storage is a pay as you go offering. 

     0Likes 0Dislikes 0Informatives
  • Reply 9 of 12
    GeorgeBMacgeorgebmac Posts: 11,421member
    iOS_Guy80 said:
    avon b7 said:
    iOS_Guy80 said:
    Research estimates and financial analyst commentary creates buying opportunity.
    To a degree yes. But what are you buying into?

    Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

    iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will  allow you to see what you are buying into. 

    It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

    I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

    Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

    The Chinese brands in particular are making life hard for Apple.

    Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.
    The analysis is complicated by the seemingly universal delusion that Apple's superiority lies in its hardware.  Then, when yet another company matches or exceeds Apple's hardware specs (which is happening increasingly often and on an annual basis) and sales migrate to cheaper but technically equal or superior hardware, panic over Apple's future follows.

    But, Apple's superiority no longer relies on its hardware.   The hardware is merely a vehicle used to deliver Apple's secret sauce:   It's software and ecosystem.  (And, for that, the hardware need only not detract)

    The trouble is:  that software and ecosystem cost a lot of money to develop and maintain.  But, for the most part, Apple buries their cost as part of the hardware cost.   So, Apple puts out a hardware gizmo that several other companies match or beat from a hardware perspective -- but the Apple "hardware" costs 1/3 to 1/2 more.  No wonder why they are losing sales to so called "cheaper" rivals.

    They need to revise their pricing structure and in some way separate the cost of the software and ecosystem from that of the hardware to make the hardware more competitive.   And, by branching out increasingly into "services" I think they are setting the stage to do just exactly that.
    Spot on about software and ecosystem being baked into hardware price. iOS and native app updates along with Apple Care phone In support are great benefits of the Apple ecosystem. These features are part of the hardware and all come with a price and I hope they continue to add it into the cost of hardware. Services and iCloud storage is a pay as you go offering. 

    Except for the most recent (last week) announcements, the only pay services are Apple Music and (arguably) iCloud.   Things like Maps, iTunes, 5Gb of iCloud, automatic backups, support, the OS and its updates, App store, Health, Activities,  Safari, virus and hacking protections, privacy assurances, and others are all free services.

    How many iPhones would Apple sell at current prices if they ran Android?
    edited April 2019
     0Likes 0Dislikes 0Informatives
  • Reply 10 of 12
    Foliofolio Posts: 698member
    Network effect combined with healthcare initiatives etc could push Apple smartphone share in US above 60 percent in a few years or so. I've recently seen Airpods worn by some folks in public housing in east coast city I live in. Old iphones sure, but airpods. That surprised me. 
     0Likes 0Dislikes 0Informatives
  • Reply 11 of 12
    iOS_Guy80ios_guy80 Posts: 966member
    GeorgeBMac said:
    iOS_Guy80 said:
    avon b7 said:
    iOS_Guy80 said:
    Research estimates and financial analyst commentary creates buying opportunity.
    To a degree yes. But what are you buying into?

    Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

    iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will  allow you to see what you are buying into. 

    It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

    I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

    Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

    The Chinese brands in particular are making life hard for Apple.

    Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.
    The analysis is complicated by the seemingly universal delusion that Apple's superiority lies in its hardware.  Then, when yet another company matches or exceeds Apple's hardware specs (which is happening increasingly often and on an annual basis) and sales migrate to cheaper but technically equal or superior hardware, panic over Apple's future follows.

    But, Apple's superiority no longer relies on its hardware.   The hardware is merely a vehicle used to deliver Apple's secret sauce:   It's software and ecosystem.  (And, for that, the hardware need only not detract)

    The trouble is:  that software and ecosystem cost a lot of money to develop and maintain.  But, for the most part, Apple buries their cost as part of the hardware cost.   So, Apple puts out a hardware gizmo that several other companies match or beat from a hardware perspective -- but the Apple "hardware" costs 1/3 to 1/2 more.  No wonder why they are losing sales to so called "cheaper" rivals.

    They need to revise their pricing structure and in some way separate the cost of the software and ecosystem from that of the hardware to make the hardware more competitive.   And, by branching out increasingly into "services" I think they are setting the stage to do just exactly that.
    Spot on about software and ecosystem being baked into hardware price. iOS and native app updates along with Apple Care phone In support are great benefits of the Apple ecosystem. These features are part of the hardware and all come with a price and I hope they continue to add it into the cost of hardware. Services and iCloud storage is a pay as you go offering. 

    Except for the most recent (last week) announcements, the only pay services are Apple Music and (arguably) iCloud.   Things like Maps, iTunes, 5Gb of iCloud, automatic backups, support, the OS and its updates, App store, Health, Activities,  Safari, virus and hacking protections, privacy assurances, and others are all free services.

    How many iPhones would Apple sell at current prices if they ran Android?
    The apps and services you describe are not exactly free. We do not have to pay form them separately as add on services. We pay for them indirectly when we buy the devices. I like it that way as opposed to being nickel-and-dimed when native apps and iOS is updated, along with charges for calling Apple Care.   

     0Likes 0Dislikes 0Informatives
  • Reply 12 of 12
    AppleExposedappleexposed Posts: 1,805unconfirmed, member
    avon b7 said:
    iOS_Guy80 said:
    Research estimates and financial analyst commentary creates buying opportunity.
    To a degree yes. But what are you buying into?

    Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

    iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will  allow you to see what you are buying into. 

    It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

    I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

    Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

    The Chinese brands in particular are making life hard for Apple.

    Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.
    "4 years of stagnant sales"......

     0Likes 0Dislikes 0Informatives
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