Apple Regains Market Share in Some Countries with Strong iPhone 5s Sales

[kdarling]

I honestly thought that Apple's market share in Japan was around 70 percent or something.

Good memory. When the iPhone 5S/5C first came out on a new Japanese carrier last October for free, it temporarily boosted its share up to 76% of total sales.

Variation from country to country or from market to market may be due to a number of factors, but one of the big ones is what the telecom carriers are promoting in any given quarter.

Yes, plus overall sales are almost directly correlated to how much the iPhone is subsidized.

The iPhone is "free" in Japan, and heavily subsidized in the US, GB, Australia, and thus does very well in those regions.

 

[Chupa Chupa]

Timing is everything. If the firm published this last week prior to Apple's earnings release and conference call w/ Apple admission that iPhone non-U.S. sales were great it would have looked genius. Coming days after, not so much.

 

[Michael Scrip]

I wish there was some other way to illustrate smartphone market share.

Right now it's broken down by platform... which seems like a good idea on the surface. Some companies are the platform... in the case of Apple and Blackberry. And Windows Phone is primarily Nokia at this point.

But then there's "Android"

The problem is... any phone running a version of Android is counted the same. It doesn't matter if it's a $599 flagship like the Galaxy S5... or a $59 el-cheapo phone sold in a developing nation. They all get the same credit. There is no distinction between various levels of phones.

Many industries have specific classifications of products. The automobile industry is a prime example.

Nobody compares sales of luxury sedans to sales of econobox hatchbacks... do they? Of course not. There are many different segments of the automobile industry.

But in the smartphone industry... everything is lumped together under one segment. It just seems weird.

I'd love to see these charts broken down between "under $400" and "over $400"

Apple doesn't sell a phone below $400. You could say Apple has 0% of the "under $400" market.

And yet... Apple is compared to companies who only sell phones under $400

That doesn't make a lot of sense.

 

[Thunderhawks]

Interesting though the 5S is getting a little long in the tooth (for cell phones). I'm waiting to see if Apple really does introduce a larger iPhone later this year.

No need to wait , it's obvious and it was only a matter of time.

Even stubborn Apple has to give in at times and they will sell plenty
for a variety of reasons (just to name a few):

People are used to seeing larger phones
People who are older no longer have to squint
Choice is good

Just make a 128 GB version please!

 

[tbrand7]

Why is Japan one of heir biggest customers? Any specific reason?

 

[windowpain]

Why is Japan one of heir biggest customers? Any specific reason?

I think it is mostly due to two factors, the market size (120 million people) and the relatively affluent society.

'Foreign' things tend to be seen as cool (particularly from the west), and Korean branded smartphones are not all that popular here (relatively speaking.)

I noticed a few Android smart phones but after Docomo got the iphone almost every young person I meet has an iphone. It really is amazing how many do. From my casual observations it is at least 8 out of 10 (of the people I meet..not the whole market of course.)

 

[apolloa]

You need to remember Apple now only makes 2 iPhone models, all the other platforms have tons of different models, so overall it is still damn impressive the share they have. But I also think it will stop them from ever being number one, they heed to offer a range of products with good specs, but Apple doesn't do that.

 

[mk_in_mke]

Market share...

Market share doesn't mean much by itself... Show us the number of units sold. The problem with a market share number presented as such is that there is no indication of the volume of units sold... Your market share can drop but your unit sold be larger than previous period.

Apple does not sell "low end" units per se: what type of phones are being sold?

Also, IOS vs Android vs. Microsoft... An interesting data set would be the number of phone makers included in the "Android" group.

Let's see if the purported iPhone 6 will change these numbers (I doubt it.)

In all cases, compared to the 1% global market share Steve Jobs targeted in 2007, not bad at all...

 

[Warbrain]

What really interests me is the drop in the US. Great that they're making gains abroad but they definitely slipped in the market everyone thinks they control.

 

[TC03]

Only 19% in Europe? Why is Apple weak here? It's a rich, Western economy with affluent consumers (compared to developing markets) nearly always paying more for American electronic goods than Americans do (eg Adobe software, Microsoft software, Apple hardware and so on). Maybe that's the problem?

Or perhaps Apple just doesn't understand the European way of doing things. Whatever, they seriously need to address this issue; a difference of 35% to 19% is just too big.

The difference: skewed pricing in the USA.

USA carriers offers large subsidies. As a result, the price difference between an iPhone and an Android phone is at max $199. The consequence of these subsidies, is that monthly fees are much higher in the US. I think $100 per month is pretty average. In Europe, I think the average monthly fee is between $30 and $50. As a result, the price difference between an iPhone and competitor may be up to $500. Hence, Android is much cheaper in Europe.

Bottom line: carriers in Europe offer low subsidies. This keeps the monthly payment low. Carriers in the US offer high subdidies, this blurs the actual price of an iPhone.

 

[Snowshiro]

The difference in Japan is primarily due to

a) There being a relative lack of really good android phones available here until recently.

b) A dislike of Korean and Chinese brands (due to regional rivalries) which tend to dominate Android handset manufacture. The Galaxy S3 and S4 did dreadfully here.

c) The fact that the iPhone has been free on contract since the 3G. So has the iPad. It's a no brainer. A lot of people if given the choice would like an iPhone, but don't get one because they tend to cost more than similar powered Android devices. When they're all free you can take what you want. In fact my wife recently upgraded her iPhone and got both the handset free and $200 cashback on her monthly bills.

 

[TC03]

Why is Japan one of heir biggest customers? Any specific reason?

It's the only big country in the world with a subsidy system comparable to the USA. Hence, the iPhone is the most popular in the USA and Japan.

 

[pedromcm.pm]

Only 19% in Europe? Why is Apple weak here? It's a rich, Western economy with affluent consumers (compared to developing markets) nearly always paying more for American electronic goods than Americans do (eg Adobe software, Microsoft software, Apple hardware and so on). Maybe that's the problem?

Or perhaps Apple just doesn't understand the European way of doing things. Whatever, they seriously need to address this issue; a difference of 35% to 19% is just too big.

No-contract price, lack of Apple Stores, lack of "Apple" brand everywhere.

 

[kdarling]

Why is Japan one of heir biggest customers? Any specific reason?

Because it's "free" on contract.

Please read my post above about the effect of subsidies on iPhone sales.

The problem is... any phone running a version of Android is counted the same. It doesn't matter if it's a $599 flagship like the Galaxy S5... or a $59 el-cheapo phone sold in a developing nation. They all get the same credit. There is no distinction between various levels of phones.

Sales are not just high and low end devices. There's a huge mid-range section as well.

There are plenty of inexpensive (compared to the iPhone) Android smartphones that are very nicely equipped.

Perhaps most importantly, the iPhone only sells well in subsidized regions, where the buyer pays less than $200 upfront. In those places, by upfront price, the iPhone would be counted in your worldwide low end range.

 

[thekeyring]

Tbh even if iPhone market share declines hugely it can still make apple money. We can still buy iPhones. It would be like the mac is today.

 

[cdmoore74]

I don't believe that. I am in need of a new phone since half a year and I was really open to Android. But I found it not pleasing at all. I like to have hardware and software from one company. So I will wait on the new, bigger iPhone. And I think a lot of others will switch back to the iPhone since there is a bigger screen and iOS 7 has been fixed.

My comment was not meant for the people that used Android for a brief period of time (half a year is pretty brief); it was meant for people like me that remember how lacking apps and Android was back in 2010 and have grown with Android to what it is today. It's the veterans of Android that I question who believe that a large iPhone will solve all their problems.
I didn't try an iPhone until last year because the year prior I wanted the Note 2, the year before that I wanted a Nexus and before that the iPhone 4 came to Verizon over 6 months after the initial release. Thought it would be a good time to get a 5s. No complaints with the hardware and small screen; it was refreshing to have a smaller phone. But it was the layout of the Apple store that drove me nuts, the lack of customizability with the entire OS, the reliance of iTunes and the fact that apps don't have real control over the OS that made me switch back to a Note 3.
Point being a large iPhone is just part of the solution. I do expect Apple to gain customers but I don't expect Apple to overthrow Android anytime soon. The benefit of owning a iPhone is not the same as it use to be a few years ago.

 

[Oletros]

The problem is... any phone running a version of Android is counted the same. It doesn't matter if it's a $599 flagship like the Galaxy S5... or a $59 el-cheapo phone sold in a developing nation. They all get the same credit. There is no distinction between various levels of phones.

Yap, EU5, USA, Japan and Australia developing nations

 

[69Mustang]

I wish there was some other way to illustrate smartphone market share.

Right now it's broken down by platform... which seems like a good idea on the surface. Some companies are the platform... in the case of Apple and Blackberry. And Windows Phone is primarily Nokia at this point.

But then there's "Android"

The problem is... any phone running a version of Android is counted the same. It doesn't matter if it's a $599 flagship like the Galaxy S5... or a $59 el-cheapo phone sold in a developing nation. They all get the same credit. There is no distinction between various levels of phones.

Many industries have specific classifications of products. The automobile industry is a prime example.

Nobody compares sales of luxury sedans to sales of econobox hatchbacks... do they? Of course not. There are many different segments of the automobile industry.

But in the smartphone industry... everything is lumped together under one segment. It just seems weird.

I'd love to see these charts broken down between "under $400" and "over $400"

Apple doesn't sell a phone below $400. You could say Apple has 0% of the "under $400" market.

And yet... Apple is compared to companies who only sell phones under $400

That doesn't make a lot of sense.

When the comparison is specifically about OS marketshare, as this one is, then yes they all get lumped together. It is what it is. We've had numerous surveys that break sales down by manufacturer and even in those, people still complain about the same things that you're complaining about above.

It sounds like you're looking for the "Apple is winning" report. We all know what that report looks like. Above $400, Apple leads, Samsung's next, and there is a chasm between Samsung and whoever's in 3rd.

The fact is these reports aren't meant for us. They appear in forums as an FYI to get us to do what we're doing. I'm sure that report you're looking for exists. It's just sitting behind a paywall.

 

[windowpain]

There are plenty of inexpensive (compared to the iPhone) Android smartphones that are very nicely equipped.

Actually as Snowshiro put it so well, the Android market in Japan tended (perhaps still does) lag the US by quite a bit.

The ones that are available are often no cheaper (to take home) than the iphone.

 

[mr.bee]

No need to wait , it's obvious and it was only a matter of time.

Even stubborn Apple has to give in at times and they will sell plenty
for a variety of reasons (just to name a few):

People are used to seeing larger phones
People who are older no longer have to squint
Choice is good

Just make a 128 GB version please!

choice is not good. if choice was good Apple would still be making big heavy laptops. you know if people might want to choose to put a dvd player in there. and everyone is used to seeing them

I dislike most of the big phones, and i'm surely not looking forward to a bigger iphone.

I'm very willing to admint i'm wrong in my statements but don't argue as these are generally accepted facts.

 

[cdmoore74]

I'm no rocket scientist but Android is number one (by double digits) in every market except for Japan and Apple has lost 7.8% while Android gained 8.3% in United States. This looks pretty bad if you ask me.
Not trying to be a troll but "if" the iPhone 6 is $100 more how is it possible for Apple to catch Android anywhere without losing it's largest market Japan eek? Are there any brain surgeons that can answer this?

 

[arturmeireles]

Italians loves Samsung, thats why!

 

[mib1800]

From the chart it is quite obvious that iphone only sell when the price is cheap or free like its competitors (us and japan).

Iphone doesn't sell well at all when there is no subsidies and more expensive than its competitors. Looking at it another way nobody wants to pay a premium for iPhone with similar spec phones can be gotten at half or one third the price.

So apple is only competitive at the free or cheap end of the market.

 

[MacVista]

It must be those 8GB iPhones 5S for $800 a piece.
Does Apple let you return things over there?

 

[EbookReader]

countries without subsidies

Spain: 7.6%
Italy: 12.9%
China: 17.9%


The biggest beneficiaries of carrier subsidies is Apple.

Subsidies mask the true price of a phone. This favors the sales of high end smartphone.