Samsung and Apple Continue to Dominate Smartphone Market, But iOS Market Share Falls

[MacRumors]

Gartner's quarterly Market Share Analysis: Mobile Phones, Worldwide report shows that Samsung and Apple continue to dominate the smartphone market, with more than 52% of the market between them, but that Android's market share grew dramatically year-on-year while iOS saw a decline.

Samsung's Q4 2012 smartphone sales totalled 64.5 million handsets, up 85.3% on the previous year, while Apple's sales reached 43.5 million, a 22.6% increase. However, with featurephones included in the picture, Apple lays in third place behind Samsung and Nokia, with a 9.2% market share.

The dominance of Android meant that overall iOS market share fell from 23.6% in Q4 2011 to 20.9% a year later. Android increased its market share in the same period from 51.3% to a commanding 69.7%. The bulk of this growth was at the expense of Symbian and RIM, but some of it was from iOS.

The figures are likely to fuel debate about Apple's pace of innovation, with iOS having changed far less dramatically than Android since the launch of each platform. While the Android platform is split across a range of manufacturers, giving it the benefit of being marketed by multiple companies, Samsung alone is responsible for 42.5% of Android sales.

With Samsung commanding over 42.5 percent of the Android market globally, and the next vendor at just 6 percent share, the Android brand is being overshadowed by Samsung's brand with the Galaxy name nearly a synonym for Android phones in consumers' mind share.

The report suggests that Apple's continued success may be more due to the halo effect of the brand, rather than the strength of the iOS platform itself.

The success of Apple and Samsung is based on the strength of their brands as much as their actual products. Their direct competitors, including those with comparable products, struggle to achieve the same brand appreciation among consumers, who, in a tough economic environment, go for cheaper products over brand.

Total worldwide mobile phone sales last year fell 1.7% to 1.75 billion, with the economy undoubtedly leading people to delay upgrades.

Article Link: Samsung and Apple Continue to Dominate Smartphone Market, But iOS Market Share Falls

[kjs862]

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

[bobenhaus]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Apple is not like Ferrari and shouldnt be comparing them at all. Pumping up the price on a device that could be sold at a 3rd or 1/2 the price is not comparible to Ferrari.

[Oohara]

But....it just works?!

[a0me]

Originally Posted by bobenhaus

Apple is not like Ferrari and shouldnt be comparing them at all. Pumping up the price on a device that could be sold at a 3rd or 1/2 the price is not comparible to Ferrari.

While I agree that the Ferrari analogy is dumb, if Apple (or any other manufacturer) sold the iPhone at a 1/3 of its price, they'll go out of business faster than you can say "businesses can't sell at cost."

[AppleScruff1]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Actually Apple is like Toyota, not exclusive at all. Kids have iPhones. You can buy them at WalMart Target, etc. iPhones are as common as can be. Ferrari is quite exclusive.

[Popeye206]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

In the end it really does not mean too much given that the phone market is fluid. Fluid meaning there is always customers buying new or changing phones. So a Nokia customer today could be an Apple customer tomorrow. Or visa versa.

For Apple, it's really about keeping the product reliable and attractive. If they do this, they will continue to expand their market. However, the fact of the matter is, everyone that is not Apple will be using something other than iOS on their phone and most of them will be Android... at least today.

[FrizzleFryBen]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

More like toilet paper. People either have a preference, they don't or someone else chooses it for them. The difference is, not everyone can afford the good stuff and there are many brands of the good stuff.

[syd430]

This is the end of Apple.

I'm calling it now - Chapter 11 bankruptcy in 6 months.

[iWe]

Originally Posted by syd430

This is the end of Apple.

I'm calling it now - Chapter 11 bankruptcy in 6 months.

[GregAndonian]

Originally Posted by syd430

This is the end of Apple.

I'm calling it now - Chapter 11 bankruptcy in 6 months.

You forgot the sarcasm tag.

With the huge pile of cash that Apple has, they could keep the company going for a very long time even if no one bought anything from them from here on out.

Apple could probably buy Guam if they really wanted to.

[Tiger8]

Not surprised. I spoke to many people who have iPhone 4 or 4s and did not jump to upgrade to 5, even though they are eligible for it. For many of them it seems that their existing iPhone is still a great device, and the 5 did not have them jumping up and down and running to upgrade (the way the 4 made had them when they moved from a 3G or 3Gs). So no dice.

[SirLance99]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Apple is NOT like Ferrari. Only people who have excess money can buy a Ferrari, where anyone can buy an iPhone. I see people who can't afford to pay their rent buying iPhones, usually the iPhone 4 for 99 cents.

A Ferrari does MORE in every way than a lesser car can do, mostly go faster. You can not say a iPhone does more than a higher end Android.

What I don't get is why people get bent out of shape if Apple isn't the only dominate producer of phones. Why can't there be a few top phones of different shapes and sizes that are great with a few pluses and minuses? The iPhone is great no doubt, but so are a few other premium Android phones.

It would seem people would want to have the iPhone and a few other premium Android phones pushing the edge of tech. In the end it's good for the consumer no matter your preference of OS.

Competition is good for the consumer and that is what you should be cheering for.

[a.gomez]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

A 200 dollar phone made in china is nothing like a Ferrari.

iOS is more like a scooter engine in a Toyota.

[gagaliya]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

No it's not, ferrari will not goto a corner and die if its market share drops to 0.1%. The whole basis for smartphone including iphone is their ecosystem, which is 100% dependent on market share.

When you start losing users, companies scale back making apps for the ecosystem, then users see the competitor has more apps and jump ship, rinse & repeat. It's a vicious cycle that once started, will be very difficult to stop. Just look at how much trouble microsoft/nokia has trying to break in, even though phone7 core os isnt bad at all.

iOS is obviously nowhere close to this yet, but it's ludicrous to say iOS/iphone are not impacted by market share. Market share is EVERYTHING to a smartphone/mobile ecosystem. Every single app maker that makes up your os is looking at this report and using it to figure out where to release their next app first.

[linuxcooldude]

Originally Posted by gagaliya

No it's not, ferrari will not goto a corner and die if its market share drops to 0.1%. The whole basis for smartphone including iphone is their ecosystem, which is 100% dependent on market share.

When you start losing users, companies scale back making apps for the ecosystem, then users see the competitor has more apps and jump ship, rinse & repeat. It's a vicious cycle that once started, will be very difficult to stop. Just look at how much trouble microsoft/nokia has trying to break in, even though phone7 core os isnt bad at all.

iOS is obviously nowhere close to this yet, but it's ludicrous to say iOS/iphone are not impacted by market share. Market share is EVERYTHING to a smartphone/mobile ecosystem. Every single app maker that makes up your os is looking at this report and using it to figure out where to release their next app first.

I disagree. Even with Apples current market share, just from renenue alone its iTune store makes more money then most phone manufactures. People tend to spend more money on the iOS ecosystem then Android.

[apple-win]

Originally Posted by linuxcooldude

.... just from renenue alone its iTune store makes more money then most phone manufactures....

McDonald's fast food makes more money than iTune store.

You are comparing apple to orange, iTune and cell phone are different business sector.

[linuxcooldude]

Originally Posted by apple-win

McDonald's fast food makes more money than iTune store.

You are comparing apple to orange, iTune and cell phone are different business sector.

I still see it as apple-apple or orange-orange. You still have to use all the iOS devices which is tied through the iTunes/iTunes store.

Without the Apps, music, video, books and content, very little incentive to get an iPhone.

The iTunes store does not make food.

[Michael Scrip]

Originally Posted by gagaliya

Market share is EVERYTHING to a smartphone/mobile ecosystem. Every single app maker that makes up your os is looking at this report and using it to figure out where to release their next app first.

That's weird... Android has 70% smartphone market share to Apple's 20%

So why do developers prefer making apps for the iPhone?

That's the complete opposite of your claim.

Android has 70% market share... but a lot of that is made up of crappy $100 phones in lesser-developed countries. You can't even access the Google Play store in China!

Developers go where the money is... and that's still iOS despite their lower market share.

[Renzatic]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Oh no. Now that Apple's falling a little behind on market share, we're gonna have to start putting up with all the "Apple is expensive car X and competitors are cheap car Y" arguments again.

This is as opposed to 2 years ago when Apple was de facto smartphone market leader, and everyone was going around saying "the consumers have spoken with their wallets! They don't want crap like Android"!

----------

Originally Posted by kjs862

Okay okay, I take back my Ferrari comment.

Oh. Didn't read this til just now. Alright. You're forgiven.

[AaronEdwards]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Ferrari is owned by Fiat.

So, who do you think is going to buy Apple?

[lazard]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Let me know when Walmart starts selling Ferraris.

[thekev]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

I get really tired of these statements. Ferrari's business model is nothing like Apple's. Apple relies on being able to ship millions of units per product line. The one real parallel is they both focus on a limited number of products. Ferrari is much more specialized though. I think only a couple of them have options for automatic transmission, and they are not ideal for driving through city traffic. Apple's focus was on what they considered the average consumer over a pretty extreme range of net worth. It's okay if you like both of those brands, but I really hope you can tell the difference.

[nia820]

Originally Posted by kjs862

I don't get these type of conversations. It's like talking about how much market share Ferrari has -- it doesn't make sense.

Apple is like Ferrari.

Uh.no it is not. Ferrari cars are made for the wealthy. Apple phones are affordable to working middle class. An iphone is affordable. The price isn't an excuse for ios losing market share. Nice try though.

[JackieTreehorn]

Lots of Samsung-paid ppl here busy +1-ing positive posts about Samsung.


They have yet to make their own OS and their own device, not ugly devices and OS copied from Apple.