iPhone 5c Broadens Apple's Customer Base, but Android Continues to Lead in Smartphones

[Xenomorph]

Some surprisingly high Windows numbers there. Especially GB. I've seen exactly one Windows phone in the wild yet they have 10%

Ooh! Ooh! I saw one, recently. We had a meeting and someone had some weird Nokia phone with a Windows logo where the Home button is supposed to be at.

That means they sold at least 1.

 

[AppleScruff1]

Look at this another way.


If Verizon, AT&T and Sprint announce that it will drop phone subsidies altogether and move in line with T-Mobile, how big of a drop would Apple stock price be?

In this hypothetical world, people will pay for the phone and the wireless service separately.

Phone can be purchased either up front or in monthly installments (24 months in T-Mobile case). For example, $99 down payment with $22 a month for 24 months to purchase the device.

iphone 5s would be $650 (selling at very high profit margin)

vs

Nexus 5 at $349 (selling at very low profit margin)

vs

Moto G at $199 (selling at very low profit margin)


It's easy to see which phone market share will go up and which phone market share will go down.

Most current, high end, non subsidized Android phones are in the same price range as the iPhone 5S.

 

[EbookReader]

Most current, high end, non subsidized Android phones are in the same price range as the iPhone 5S.

and they too will lose market share to a high end device that is selling at nearly half the price.

Samsung Galaxy S4 at $650

or

Nexus 5 at $349





--------------------------------------

Xiaomi is doing this to perfection in China, a country where phone are bought unsubsidized. "High end device at half the price" It's growing like crazy.

What Chinese smartphone company that sold its first smartphone 2 years ago and its now valued higher than Nokia and Blackberry combined?

Xiaomi (with its $10 billion valuation).

Wouldn't be surprised if it will sell 35 million smartphone in China in 2014. It projects 20 million smartphone sold in 2013 (up from 7.1 million in 2012). Crazy growth for a company that sold its first smartphone 25 months ago.

This is possible because China is mostly un-subsidized market. Selling high-end smartphone at half your competitors price will mean high volume.

My projection for Xiaomi

2012: 7.1 million
2013: 20 million
2014: 35 million
2015: 50 million

and its valuation will continue to climb. It has a very good chance at being #2 in the world largest smartphone market (China).

 

[dBeats]

Not all android phones are smartphones!! Marketers, please stop lumping cheapo phones that happen to be running an android kernel in with the rest of them!!

 

[Kenn Marks]

Giving your files to the world

For one, I am talking about sending a file from your phone to someone electronically, You cannot send any file you want in your file system from IOS other than a photo via email or the web. And you cannot access the file system of your IOS device to any computer without some sort of 3rd party app. I simply plug my phone into my computer and I can see the entire file system internal and external drives.

I'm glad you are also comfortable sharing all your files with the world electronically since 97% of Mobil malware targets Android and since OS and security upgrades are virtually impossible to obtain and install you are left wide open to Malware incursions (yes there are Anti Malware Apps - just another way to increase the cost of ownership). Sorry Not on my Dime.

http://www.gsmarena.com/mobile_malware_on_the_rise_in_q3_97_of_which_targets_android-news-7155.php

 

[AppleScruff1]

and they too will lose market share to a high end device that is selling at nearly half the price.

Samsung Galaxy S4 at $650

or

Nexus 5 at $349

Absolutely they will lose market share where phones aren't subsidized. The Nexus 5 really is a nice phone and at $349, nothing even comes close.

 

[Rogifan]

This pretty much covers it. The iPhone is more expensive with no real benefit when Android and Windows Phone can do exactly the same stuff for less and more expandability.

Hasn't that been the case with Apple since forever? Go back 10-15 years and the same thing was being said about Macs and iPods. When did Apple ever compete on price and specs?

 

[KPOM]

These numbers are becoming increasingly clouded. A few years ago market share might have held some value, but that is not the case anymore. Almost every phone runs Android, it won't be long before my water boiler will run Android.

Exactly. I've even seen replacement car stereo systems running Android. Essentially, there is no more distinction between a "feature phone" and a "smart phone." They are virtually all technically "smart phones" now. That's the reason Apple's share of the "smart phone" market is declining even as their share of the total phone market is increasing. Apple doesn't compete in most segments of the market.

 

[ragermac]

I'm glad you are also comfortable sharing all your files with the world electronically since 97% of Mobil malware targets Android and since OS and security upgrades are virtually impossible to obtain and install you are left wide open to Malware incursions (yes there are Anti Malware Apps - just another way to increase the cost of ownership). Sorry Not on my Dime.

http://www.gsmarena.com/mobile_malware_on_the_rise_in_q3_97_of_which_targets_android-news-7155.php

Uh, I am fully aware of malware and I have NEVER encountered one on my android phone. I obviously do not send just any file, but I do send pdfs and other documents to my colleagues and I enjoy the ability to do so flawlessly and natively on my android phone.

 

[Hastings101]

Apple had a nice monopoly on modern smartphones that gave them an edge early on but that's over. Apple's two or three iPhones can not compete with the massive amounts of phones produced, and sold at several price points, by the Android vendors or even just the variety of phones produced by Samsung.

That's just the truth. Not saying that's a bad thing, Apple can still make "record profits" or whatever and be the wealthiest tech corporation in the world, but I think the market share war is over (if there ever really was one). They're eventually going to be the Macintosh of the mobile world and sell goods with a high profit margin to 10-20% of the population.

All my opinion of course, this is a forum after all

 

[Rootus]

Hopefully Apple isn't nearly as smug or self-assured as MacRumors fanboys . For anyone paying attention, there has been a noticeable shift away from iPhone by people who matter. That is, people who others look to for tech advice. When the smart folks start to move on, the herd will start to follow. iPhone is about to get marginalized into the same position Macs are, only this time the lead was Apple's to lose. It's possible they're more comfortable as the underdog, but sad.

 

[AppleScruff1]

Exactly. I've even seen replacement car stereo systems running Android. Essentially, there is no more distinction between a "feature phone" and a "smart phone." They are virtually all technically "smart phones" now. That's the reason Apple's share of the "smart phone" market is declining even as their share of the total phone market is increasing. Apple doesn't compete in most segments of the market.

So Apple is losing market share to car stereos?

 

[EbookReader]

Absolutely they will lose market share where phones aren't subsidized. The Nexus 5 really is a nice phone and at $349, nothing even comes close.

Except the Xiaomi Mi3.

Even better specs than the Nexus 5. (the Mi3 has better camera and bigger battery).

And $22 cheaper at $327 off-contract/unlocked. Perfect for the Chinese market where phone are mostly sold unsubsidized.

Qualcomm Snapdragon 800 quad-core 2.3GHz CPU
Sharp/LG 5″ 1080P IPS display with ultra-sensitive touch
2GB LPDDR3 RAM
16GB eMMC4.5 flash memory
SONY 13 MP Exmor RS CMOS back camera
2MP BSI front camera
NFC & 2.4/5G WiFi support
3050 mAh battery



vs the $349 off-contract / unlocked NEXUS 5

Specs

 

[sethlution]

How about the ability to send someone a file other than a photo natively, without the aid of an app? Or true multitasking, or external storage, or better maps or nicer screen size, customization, better sharing features, better keyboard choices, visible file system, better notifications, (apple realized this and copied) google now, (Siri is a joke), more free apps, unlock options, shall I go on.....

Sending file without the aid of an app? On android you still need a file explorer app(built in though) to send file so what's your point? iOS is designed to run apps. You unlocked and go straight to the one that do what you need. And Siri is much better that gNow in my opinion. The tight integration let you do stuff gnow can't (set alarm, send message, update status..) Google multitasking implementation is actually horrible on the phone. I keep uninstalling apps from my phone because of the battery drain. Not to mention the constant need to kill all app every so often to reclaim RAM. It's just a horrible experience

Your other points are valid though. iOS keyboard is a joke after I've tried swype. The thing is both OS have flaws, but iOS provides a better experience for me, and I'm sure the millions of iPhone users feel the same.

 

[Renzatic]

They're eventually going to be the Macintosh of the mobile world and sell goods with a high profit margin to 10-20% of the population.

This isn't necessarily a bad thing. One company selling one line of phones to 20% of the population is an enviable position for anyone to be in. I'm sure any one Android manufacturer would love to sell that much.

The problem with Apple though is that they only consider other Apple devices, and only likes to exist in Apple custom tailored little world. iPhones have all these nice features most people will rarely ever use because everyone else is using an Android or Windows Phone. They love leaning on their own standards that can only be used in their own little ecosystem. In the end, it won't matter how cool Airdrop, iMessages or tight iCloud integration is if you can only use them with a specific set of products under very specific circumstances.

That's always been Apple's problem in my opinion. Unlike everyone else, you can't really mix and match their stuff. You either have to go all Apple, and accept some limitations, or use a variety of stuff, and accept some compromises.

 

[Oletros]

Not all android phones are smartphones!!

Can you show me an Android phone that is not an smartphone?

----------

I'm glad you are also comfortable sharing all your files with the world electronically since 97% of Mobil malware targets Android and since OS and security upgrades are virtually impossible to obtain and install you are left wide open to Malware incursions (yes there are Anti Malware Apps - just another way to increase the cost of ownership). Sorry Not on my Dime.

http://www.gsmarena.com/mobile_malware_on_the_rise_in_q3_97_of_which_targets_android-news-7155.php

What has to do sharing files with being infected?

 

[efktd]

what's with these, "i've switched to android and will never go back to iPhone" comments? then they go on describing all the features... umm, who cares? put your phone down and go outside. or have a drink with a friend.

 

[Alphabetize]

I think Tim Cook said at the All Things D conference that Apple was never about making the most. They don't need to make the most to still be profitable.

 

[Ventilatedbrain]

How about the ability to send someone a file other than a photo natively, without the aid of an app? Or true multitasking, or external storage, or better maps or nicer screen size, customization, better sharing features, better keyboard choices, visible file system, better notifications, (apple realized this and copied) google now, (Siri is a joke), more free apps, unlock options, shall I go on.....

And those are innovations ? Jeez ! Listen I know there are some thing that android does nicely, but saying it's better is downright daft.. Both products are good but they are DIFFERENT ! External storage and removable battery are mostly only done by samsung, the rest are now offering unibody designs , the free apps are a joke on google play , hell even the paid apps aren't as polished as iOS .. I don't know why you mean by true multitasking but I think iOS implementation is much better .. Maps are overrated as I use navigon because I travel a lot but a fun fact is that iOS devices do not need 3G or wifi to guide you whilst almost every android handset I've used does ..

Disclaimer : I own both iPhone 5s and nexus 4

 

[himanshumodi]

Is anyone talking about the INCREASE in market share of Blackberry in Australia?

 

[Mockenrue]

Exactly!! I am getting so tired of the ios (iphone) vs android (LG Samsung et all) stat. Lets see a recent stat of iPhone vs hardware.

Paying customers (app revenue) and eyeballs on screens (add revenue) are the metrics that really matter to a platform's success - not specific device model sales. Operating systems draw app makers, and apps ultimately determine success of a platform. When the Palm Pre was released, the hardware and OS were considered to be as good or better than the iPhone at the time. Palm OS is still being copied today (everyone, including iOS, now uses its multitasking UI). Nobody bought it because of the app ecosystem.

Apple made the choice not to license iOS to other handset makers, so they have to take the good (less handset options = less fragmentation) with the bad (less handset options = lower market share). Apple still does very well because the app and add revenue historically has been the highest. Those gaps are narrowing now. If/when that equation swings in Android's favor, you could see the market share numbers suffer even more. It's a tide that Apple needs to address.

 

[linuxcooldude]

If Apple's smartphone market share is decreasing, but their "total phone market" is increasing, I'd like to see that.

Its quite easy to understand. Android market share does not separate phones sold by their respective companies. If we looked at a single android model by each company compared to the iPhone we would see market share and profits much differently.

Now if Android phones were sold by one manufacturer then we might have a valid comparison.

 

[iSlave]

I used to work in Apple Retail and I can tell you categorically that they are running scared from Android. They're desperate to chain you into a two year iPhone contract any which way they can because Android is eating into their marketshare big time - and the iPhone is their biggest revenue earner.

Unfortunately for Apple, Android has caught up and is now a cheaper, and equivalent alternative. There's nothing special about the iPhone anymore, therefore most people can't see the point in paying more.

And yes, I no longer work for Apple because I had no interest in continuing to flog a dead horse.

 

[LDec]

I love such comparisons ...

iPhone 5c was almost not available in some countries that are listed there ...
How can someone make real comparison )?

 

[iBug2]

And yes, I no longer work for Apple because I had no interest in continuing to flog a dead horse.

Maybe I should switch to Android now that Apple doesn't have you.