Apple's Share of Worldwide Smartphone Market Slides as Samsung Continues to Surge

[MacRumors]

Research firm IDC yesterday released its estimates of global mobile phone and smartphone shipments for the second quarter of 2012, revealing that Apple's slower year-over-year iPhone growth and booming sales from Samsung have caused the company's share of the market to slip compared to previous periods.

In the smartphone market, Apple's shipments of 26 million iPhones were up 27.5% year-over-year, but with the market growing at a 42% clip, Apple's share slid from 18.8% to 16.9%. Apple's share had registered at 24.2% in the prior quarter when the company was still riding high on the relatively new iPhone 4S that was expanding into new markets such as China.

Worldwide Smartphone Shipments in 2Q12 in Millions of Units (Source: IDC)

While Samsung has ceased releasing data on smartphone sales for competitive reasons, IDC's estimates peg the company at having shipped 50.2 million smartphones during the quarter, up 172.8% year-over-year and allowing Samsung to easily take the crown in a booming market that topped 150 million shipments during the quarter.

Apple posted an expected sequential decline last quarter, similar to years past. The quarter-over-quarter shipment decline came six months after it unveiled its latest iPhone. The decline is not unusual as iPhone shipment volume is highest in the first two quarters after its release. The company's once-a-year release cycle usually results in two quarters of lower volumes leading up to the next-generation model introduction. Nonetheless, Apple made significant inroads into new markets and segments, including smaller regional carriers and prepaid service providers.

Looking at the mobile phone market as a whole, Apple's performance looks a bit better, with the company's 27.5% year-over-year growth approaching Samsung's overall 29.7% growth as the feature phone business has continued to erode with the consumer shift to smartphones. The mobile phone market as a whole grew by only 1% year-over-year, meaning that the smartphone segment's strong growth was almost entirely offset by losses in feature phones on a unit basis.

Worldwide Mobile Phone Shipments in 2Q12 in Millions of Units (Source: IDC)

Apple's share of the total mobile phone market registered at 6.4% for the quarter, up from 5.1% in the year-ago quarter but down from last quarter's 8.8% share.

Article Link: Apple's Share of Worldwide Smartphone Market Slides as Samsung Continues to Surge

[PixelsAbuser]

This is the reason why Apple sues Samsung so much. They know they can't handle that much competition with such fast development.
iOS looks like 2007... Oh wait...

[iDamian]

Originally Posted by PixelsAbuser

This is the reason why Apple sues Samsung so much. They know they can't handle that much competition with such fast development.
iOS looks like 2007... Oh wait...

Or maybe it's because Apple only sells one type of phone compared to plenty of Samsung smartphones. And people hesitated to buy the iPhone; they're waiting for the iPhone 5, which should definitely increase Apple's share.

[BigJohno]

Good to see Apple getting some heat. They need this in order to keep innovating.

[BC2009]

I always love these analysts. They can't seem to peg earnings on Wall Street, but we are suppose to take their numbers as fact when so many manufacturers (including Samsung) do not provide actual sales figures. Just look at the recent spread on 48 analysts trying to guess how many iPhones Apple sold in the quarter and then think about how the average was close. In this case we don't have 48 analysts, but one firm putting their numbers out. For all we know they are at the high end or low end or middle of the spectrum in their guess on the number of phone shipments.

[spiderman0616]

I really don't know why we have to keep harping on this. They beat their guidance once again. They grew in every area except the iPod. They're selling crazy amounts of iPads. And all this is aside from the fact that they're up from this time last year but had the same exact kind of slowdown. This was an expected slowdown that everyone knew would happen and until Apple breaks their "every fall" release cycle for the iPhone, it's going to keep happening.

The headlines all make it look like Apple missed earnings. Really what happened is that they missed Wall Street's unrealistic expectations.

[BC2009]

Originally Posted by PixelsAbuser

This is the reason why Apple sues Samsung so much. They know they can't handle that much competition with such fast development.
iOS looks like 2007... Oh wait...

You make a good argument.... for bringing back the down-voting of comments.

[iMikeT]

Average consumers love cheap products and analysts are stupid.

[wickerman1893]

172% is incredible but I don't know how. The SIII is nice but not as nice as the 4S or Lumia 900.

[WiiDSmoker]

Originally Posted by iMikeT

Average consumers love cheap products and analysts are stupid.

You're talking about the iPhone 4 that can be had for free or 49.99 right? Stop this crap.

[marcusj0015]

I'm starting to worry that Faildroid may win, Apple NEEDS free iPhones and they need prepaid iPhones, they need them everywhere if they want to win, and honestly, without the iPhone, Idk what's in Apple's future.

[D.T.]

Samsung moves a ton of phones through the retail channel as the cheap/free/don’t-care option for smart phone buyers.

My brother and sister-inlaws are a great example. Both have Samsung smart phones, neither could answer anything about what they do other than they take pictures and post on Facebook (both are confused about how you add media, download music, etc.)

Both phones were free, one is a Windows phone, the other is an Android phone (the latter was a replacement for a previous Windows phone).

[Macboy Pro]

Not a surprise, the iPhone looks antiquated compared to some of the newer droids like the HTC one X and the Samsung Galaxy SIII. If the iPhone 5 Rumors are true, its not going to be pretty as the iPhone will continue to slip


Wake up Apple!

[Camaro6700]

Originally Posted by wickerman1893

172% is incredible but I don't know how. The SIII is nice but not as nice as the 4S or Lumia 900.

It's not just the hardware that changes, the UI also changes and improves. iOS has the same look since it first came out. Some people like change.

[pgiguere1]

Originally Posted by iMikeT

Average consumers love cheap products

More like "Average consumers love huge screens".

[Ryno76]

Originally Posted by iDamian

Or maybe it's because Apple only sells one type of phone compared to plenty of Samsung smartphones. And people hesitated to buy the iPhone; they're waiting for the iPhone 5, which should definitely increase Apple's share.

exactly! samsung produces how many phones? versus one iphone.....oh well...good competition brings more innovation!

[BvizioN]

Originally Posted by PixelsAbuser

This is the reason why Apple sues Samsung so much. They know they can't handle that much competition with such fast development.
iOS looks like 2007... Oh wait...

What competition? A Babylon of 20 or more cheap plastic galaxy phones against 3 iPhones? On what planet do you live?

[wickerman1893]

Originally Posted by Camaro6700

It's not just the hardware that changes, the UI also changes and improves. iOS has the same look since it first came out. Some people like change.

I like change too but change means nothing when the software starts to lag after a month and the software is buggy. NOT that the SIII is because I haven't used it, but past Samsung phones.

[MacNut]

Originally Posted by marcusj0015

I'm starting to worry that Faildroid may win, Apple NEEDS free iPhones and they need prepaid iPhones, they need them everywhere if they want to win, and honestly, without the iPhone, Idk what's in Apple's future.

Hate to burst your bubble but if Apple doesn't drastically update the next iPhone I would likely move to Android. Samsung has some nice looking products that I would not mind owning.

[Macboy Pro]

Originally Posted by wickerman1893

172% is incredible but I don't know how. The SIII is nice but not as nice as the 4S or Lumia 900.

The Galaxy SIII is WAY WAY WAY better hardware than the 4s. WAY better. The problem with the Galaxy is the OS. IOS is way better than droid. Its pretty much a hardware vs software battle in my opinion.

[marcusj0015]

Originally Posted by MacNut

Hate to burst your bubble but if Apple doesn't drastically update the next iPhone I would likely move to Android. Samsung has some nice looking products that I would not mind owning.

I don't care what you do lol, I'm talking globally.

[that1guyy]

Here begins Apple's decline, and this time they don't have anyone to save them when they hit bottom.

[MacNut]

Originally Posted by marcusj0015

I don't care what you do lol, I'm talking globally.

Ya and Samsung is a global company.

[G51989]

This is bound to happen, Apple goes with a " one phone fits all approach ", which is fine, but when another phone maker starts offering different phones at different price points, the consumers will start look there as well..

iPhone is great, but even with the 5. It won't be king forever.

Just to make that clear, yes. Apple created a huge storm with some of its products, and has stayed top dog.

But they won't be number 1 forever. Just isn't possible. Eventually, someone will come along with something that people like more. Who knows when.

[Macboy Pro]

Originally Posted by iDamian

Or maybe it's because Apple only sells one type of phone compared to plenty of Samsung smartphones. And people hesitated to buy the iPhone; they're waiting for the iPhone 5, which should definitely increase Apple's share.

Apple has the White 4, the Black 4, the White 4s, the Black 4s and the 3G available.

Granted, all the iPhone 4's, 4s's, and it looks like the 5's look pretty much the same. They are heavy, small, and look very 2009 or 2010.