Samsung Doubles Apple's Share of Smartphone Market as Customers Await iPhone 7

[MacRumors]

The latest data from market research firm IDC reveals that Samsung shipped nearly twice as many smartphones as Apple in the fiscal third quarter. Android-based Galaxy smartphone shipments totaled an estimated 77 million, compared to 40.4 million iPhones, during the three-month period that ended in late June. For Apple, the fiscal third quarter is seasonally its lowest of the year.

Samsung was the most popular smartphone vendor in the quarter with a leading 22.4 percent market share, nearly double Apple's 11.8 percent market share. Samsung experienced 5.5 percent year-over-year growth on the strength of the Galaxy S7 launch in March, whereas Apple declined 15 percent compared to the year-ago quarter as customers await the iPhone 7 series in September.

One bright spot for Apple was the lower-priced iPhone SE, although the iPhone's average selling price dropped to $595 compared to $662 last year:

Apple's second quarter saw the Cupertino-based giant ship 40.4 million iPhones, representing a 15.0% year-over-year decline from the 47.5 million units shipped last year. The new 4-inch iPhone SE proved successful in both emerging and developed markets as the new SE has captured many first-time smartphone buyers as well as Android users switching over to the Apple ecosystem. The success of the cheaper SE did, however, have an impact on the overall average selling price (ASP) for an iPhone in the quarter. The ASP for an iPhone was $595, down 10.1% from $662 one year ago. As smartphone competition continues to escalate and upgrades continue to slow, Apple will look to drive sales with a newly designed iPhone 7 combined with their upgrade program come this fall.

Apple also ceded market share to Chinese rival Huawei, which ranked third among smartphone vendors with an estimated 32.1 million shipments and 9.4 percent market share. Huawei manufactures Google's popular Nexus 6P and introduced new dual-camera P9 and P9 Plus smartphones in April, but its presence in the United States and other regions is still limited compared to China.

Chinese rivals OPPO and Vivo rounded out the top five smartphone vendors with quarterly sales of 22.6 million and 16.4 million units respectively. OPPO in particular saw explosive 136.6 percent year-over-year growth over the three months, increasing its market share to 6.6 percent compared to 2.8 percent in the year-ago quarter. Vivo had 9.1 percent market share, an 80.2 percent year-over-year change.

Worldwide smartphone shipments totaled an estimated 343.3 million units in the quarter, an increase of only 0.3 percent from the year-ago quarter, when vendors shipped an estimated 342.4 million units. The relatively flat growth is the result of market saturation and lengthening upgrade cycles, which vendors have attempted to offset by offering incentives such as the iPhone Upgrade Program.

On Wednesday, Apple CEO Tim Cook said the company recently sold its 1 billionth iPhone.

Article Link: Samsung Doubles Apple's Share of Smartphone Market as Customers Await iPhone 7

 

[Corrode]

I hope Canada gets the iPhone Upgrade Program this fall. I like the idea of not being tied to a carrier.

 

[pat500000]

For now...but when ip7 becomes available...the next title would be "Samsung and Apple becomes best friends.

 

[muledoggie]

The latest data from market research firm IDC reveals that Samsung shipped nearly twice as many smartphones as Apple in the fiscal third quarter. Android-based Galaxy smartphone shipments totaled an estimated 77 million, compared to 40.4 million iPhones, during the three-month period that ended in late June. For Apple, the fiscal third quarter is seasonally its lowest of the year.

Samsung was the most popular smartphone vendor in the quarter with a leading 22.4 percent market share, nearly double Apple's 11.8 percent market share. Samsung experienced 5.5 percent year-over-year growth on the strength of the Galaxy S7 launch in March, whereas Apple declined 15 percent compared to the year-ago quarter as customers await the iPhone 7 series in September.

One bright spot for Apple was the lower-priced iPhone SE, although the iPhone's average selling price dropped to $595 compared to $662 last year:Apple also ceded market share to Chinese rival Huawei, which ranked third among smartphone vendors with an estimated 32.1 million shipments and 9.4 percent market share. Huawei manufactures Google's popular Nexus 6P and introduced new dual-camera P9 and P9 Plus smartphones in April, but its presence in the United States and other regions is still limited compared to China.

Chinese rivals OPPO and Vivo rounded out the top five smartphone vendors with quarterly sales of 22.6 million and 16.4 million units respectively. OPPO in particular saw explosive 136.6 percent year-over-year growth over the three months, increasing its market share to 6.6 percent compared to 2.8 percent in the year-ago quarter. Vivo had 9.1 percent market share, an 80.2 percent year-over-year change.

Worldwide smartphone shipments totaled an estimated 343.3 million units in the quarter, an increase of only 0.3 percent from the year-ago quarter, when vendors shipped an estimated 342.4 million units. The relatively flat growth is the result of market saturation and lengthening upgrade cycles, which vendors have attempted to offset by offering incentives such as the iPhone Upgrade Program.

On Wednesday, Apple CEO Tim Cook said the company recently sold its 1 billionth iPhone.

Article Link: Samsung Doubles Apple's Share of Smartphone Market as Customers Await iPhone 7

[doublepost=1469721847][/doublepost]Market share isn't a business model in this modern world. Apple has, what, 90% of smartphone profits worldwide.

 

[smacrumon]

iPhone price is an issue, it's too expensive. Customers are paying for perfection when they buy Apple. Also not giving users a flagship 4" model is another issue. Then there's the imperfect design of the 6/6s including the protruding camera and antenna lines. These are issues that crept into the design after the very clean 4/4s and 5/5s. Perfection is Apple's point of difference. When it's not perfect, then customers go elsewhere.

 

[Tim Chef]

Yes, as we await the iPhone 7...

 

[Benjamin Frost]

Samsung's profits are now about 2/3rds of Apple's. How long before they surpass them?

If they brought out a 4" phone with a headphone jack, I would start investigating. Apple's whole direction is wrong. So sad to see.

 

[Zirel]

The latest data from market research firm IDC

Where are Samsung official sales numbers?

Why they are never presented, and only "guesstimations" from IDC or whatever?
[doublepost=1469722317][/doublepost]

Apple's whole direction is wrong.

Been hearing that since 1976.

Right or wrong, they are who points the way.

 

[xdhd350]

Samsung reports shipments, Apple reports sales. No telling where all those "shipments" are sitting right now.

 

[chr1s60]

Love it, hate it, or neutral about it, Samsung has done a lot more to help their phones than Apple has over the past 3-4 years. Apple got too content. Sure iOS still has some major advantages over Android in my opinion, but in the hardware area I think Samsung is doing a much better job developing and putting out new products.

 

[H2SO4]

Samsung reports shipments, Apple reports sales. No telling where all those "shipments" are sitting right now.

Apple reports sales when it suits them. Funny how we choose to believe the UNofficial numbers when Apple are reported to be doing well.

 

[JPLC]

If market saturation effects iPhone sales for Apple, the way I understand it is that the iPhone became regular. Thats a bad thing.

 

[fyun89]

Always love better competition. Consumers wins.

 

[44267547]

Samsung will do well with the Note 7. Only time will tell though.

 

[SMIDG3T]

Samsung's profits are now about 2/3rds of Apple's. How long before they surpass them?

If they brought out a 4" phone with a headphone jack, I would start investigating. Apple's whole direction is wrong. So sad to see.

How have you come to this conclusion? Apple sell FIVE different iPhone models, Samsung probably sell 50 different sorts.

 

[richpjr]

I'm glad Samsung is having success - it will only push Apple to come out with better products. Competition is good for consumers.

 

[blacktape242]

as expected....non news...

 

[chr1s60]

as expected....non news...

Would you prefer another Pokemon Go article instead?

 

[Born Again]

I've never used a samsung phone. That's impressive.

 

[RichTeer]

I hope Canada gets the iPhone Upgrade Program this fall. I like the idea of not being tied to a carrier.

You can do that today: just buy an unlocked iPhone directly from Apple (that's what I did when I got my iPhone 5s). No need to sign up to a continuous upgrade program!

 

[deany]

I love Samsung and android as it keeps apple 'on its toes'- I truly believe the iPhone wouln't be as good without this competition

 

[0lf]

Samsung's profits are now about 2/3rds of Apple's. How long before they surpass them?

Samsung is big, much bigger than Apple. You should compare Apple to only the computing - mobile division within Samsung to make a relevant comparison.

Also, keep in mind flagship schedule are 6 month appart...

 

[69Mustang]

Samsung reports shipments, Apple reports sales. No telling where all those "shipments" are sitting right now.

Probably sitting in the same place that Apple's shipments are sitting. In channel inventory. Apple reports shipped numbers just like everyone else. Not sure why you think differently.

 

[Col4bin]

Am I the only one who cringes every time I see a photo of that "pink looking" rose gold iPhone?

 

[developer13245]

Nice to see what "goes around, comes around". Screwing small developers by unreasonable terms causes them to walk away from the platform. Innovation departs on all levels....