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Nice one. It would be nice to see something like the iPhone 5c drop to around $350. It could at least scrape the surface of the sub-$400 market. But perhaps Apple is worried it would pull people away from the 5s and future 6, so they'd rather sell fewer phones at greater margins.

Amazing thing is that after the 5s and the Samsung Galaxy, the next best selling device is the 5c. So far it seems that the experiment has worked. So if they can find a way to continue to bring the cost down so that they play in the lower end markets without sacrificing quality, ecosystem, or profit, they will. But they will never be the cheapest, and I dont think they even want to be. They just need to be cheap enough where the people are willing to spend that little extra to get the better product. As I stated, the numbers clearly show that when the price is the same or close, people overwhelming seem to choose apple. for Apple that means they need to close the gap enough (not completely). for the competition they need to hope that never happens.
 
A cursory look at some of those figures to me simply identifies and highlights differences in regional Mobile phone company upgrading sales strategies.

Countries such as the UK has competitive mix of on-contract and pay as you go models similar in many ways to the US.
Allowing frequent upgrades of handsets including iPhones for little or free upfront cost for on contract customers.

Where as countries primarily operating upfront and pay as you go pricing models clearly mean the multitude of Android models have a price advantage and are taking market share away from dumb phones.

Microsoft and Nokia brands in the UK particularly continue to have strong brand awareness and are being promoted by both phones4U and Carphone Warehouse independent resellers - One assumes there are awards offered to salesmen and women.
 
Canada is in the same marketshare range as well; Europeans/Canadians like to have open and interoperable platforms.


In Europe, phones are usually bought outright - and buying a 600+ smartphone is hard to swallow for any customer.

You can get an Iphone 5S free on contract with many carriers in London. See attached link. However, many prefer the flexibility of getting a SIM only contract and buying their phone outright.

I am on my third Iphone and all of them were bought outright. The market for Samsung S4, S5 and Note is very similar with many choosing to buy outright even with free contracts available.

Fact is SIM only contracts are very attractive and very flexible.

http://www.carphonewarehouse.com/search/?q=Iphone 5S
 
Amazing thing is that after the 5s and the Samsung Galaxy, the next best selling device is the 5c. So far it seems that the experiment has worked. So if they can find a way to continue to bring the cost down so that they play in the lower end markets without sacrificing quality, ecosystem, or profit, they will. But they will never be the cheapest, and I dont think they even want to be. They just need to be cheap enough where the people are willing to spend that little extra to get the better product. As I stated, the numbers clearly show that when the price is the same or close, people overwhelming seem to choose apple. for Apple that means they need to close the gap enough (not completely). for the competition they need to hope that never happens.
If you believe the 5C is the third best selling device Globally I have a bridge to sell you.
 
I think this is spot on too. I seem to remember them not being too worried about actual market share, as they are making something like 90% of the profit from the cell phone market. (It was maybe part of a Phil Schiller Keynote...my memory fails me I'm afraid.)

Edit: It appears I was too generous, this article has them at 73% of the profit.

That report is from 2012, it's currently about 56% Apple and 53% Samsung...

The latest data from Canaccord Genuity, shared with AppleInsider by analyst T. Michael Walkley on Thursday, estimates that Apple took 56 percent of the operating profits for feature phones and smartphones in the third quarter of calendar 2013. Coming in close second was Samsung, which took 53 percent of industry profits.

In contrast, all of the competition lost money, with the exception of Sony, which broke even during the quarter. The biggest loser was struggling BlackBerry, which represented a negative 4 percent of industry profits, followed closely by Google-owned Motorola, taking negative 3 percent.

Nokia, LG and HTC were all about even with one another, each representing negative 1 percent of mobile profits, according to Canaccord Genuity.

Link: http://appleinsider.com/articles/13...industry-profits-while-competitors-lose-money

Not really sure what this is all about!! :confused:
Is it iPhone supposed to sell more then all hundreds of models of Android devices? Because I don't know any single phone maker who sells more phones then Apple!

Samsung outsells Apple about two to one in the smartphone segment however Samsung does sell a lot of junk that could just barely be called smartphones.

Samsung ended the quarter the same way it began the year: as the clear leader in worldwide smartphone shipments. But even with sustained demand for its Galaxy S III, S4, and Note models, as well as its deep selection of mid-range and entry-level models, the company realized a decline compared to the previous quarter. Nevertheless, the company maintained a sizable double-digit lead over the next vendor.


Apple posted record shipment volume during 4Q13, driven primarily by the addition of multiple countries offering the iPhone 5S and 5C, and sustained demand from its initial markets that saw these models launch at the end of 3Q13. Still, Apple had the lowest year-on-year increase of all the leading vendors. Now that Apple has finally arrived at China Mobile, it remains to be seen how much Apple will close the gap against Samsung in 2014.

http://www.idc.com/getdoc.jsp?containerId=prUS24645514
 
Amazing thing is that after the 5s and the Samsung Galaxy, the next best selling device is the 5c. So far it seems that the experiment has worked. So if they can find a way to continue to bring the cost down so that they play in the lower end markets without sacrificing quality, ecosystem, or profit, they will. But they will never be the cheapest, and I dont think they even want to be. They just need to be cheap enough where the people are willing to spend that little extra to get the better product. As I stated, the numbers clearly show that when the price is the same or close, people overwhelming seem to choose apple. for Apple that means they need to close the gap enough (not completely). for the competition they need to hope that never happens.

That's not true at all

The fact is apple sales are falling everywhere
 
I'm still amazed no one here seems to GET IT.....

I know quite a few VERY clever people, in various industries. Clever people, with numbers you also like the tech.

They all have Android mobiles. Sony, HTC, Samsung etc. Top end models.
They laugh at the iPhone crowd.

They all see it as the dumbed down phone for Americans and those who don't really understand how to work proper things.

Like it or not, that's how they all see it.
Lock it down, Reduce customization, limit choices of models.

These things are not what they want.
Even where I myself work I know 3 people who have, for want of a better word "OutGrown" iPhones.

They had them, and over time got frustrated and wanted something they could have that exactly matched what they wanted.

Again, this is not me speaking, I'm passing on views. Deny them, sure, but it's real.
 
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.

It doesn't make sense, and I'm surprised that with all of the conspiracy theorists out there who will pick apart anything Apple says or does, nobody takes the time to look at this glaringly obvious issue with the numbers.

Nevermind, I'm not surprised.
 
iPhone6 may change these figures even a bit more in Apple's favor.

Okay that isn't based on any fact

And japan is very small country

The headlines are misleading

----------

I'm still amazed no one here seems to GET IT.....

I know quite a few VERY clever people, in various industries. Clever people, with numbers you also like the tech.

They all have Android mobiles. Sony, HTC, Samsung etc. Top end models.
They laugh at the iPhone crowd.

They all see it as the dumbed down phone for Americans and those who don't really understand how to work proper things.

Like it or not, that's how they all see it.
Lock it down, Reduce customization, limit choices of models.

These things are not what they want.
Even where I myself work I know 3 people who have, for want of a better word "OutGrown" iPhones.

They had them, and over time got frustrated and wanted something they could have that exactly matched what they wanted.

Again, this is not me speaking, I'm passing on views. Deny them, sure, but it's real.

Yup

A lot of normal people have android

Apple apologists believe that only poor people buy android

It's shameful and disgusting.

Shame on you apple apologists

You

You disgust me
 
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.
In practical terms Android is cheaper and more functional, and ease of use or good ecosystem is not of very big importance to europeans. Also, while Apple products are great for "consumer" use like music, photos, web browsing, etc, they are in many ways unsuitable for professional use, because it's hard to modify their software and hardware, there is basically only one iPhone and not dozens of models suitable for specific uses.
For example, if I want to write notes with a stylus, I have to buy Android tablet, even if I like Apple very much. If you add up these small cases where people prefer Android only because one specific feature that generally no one wants, but few people can't live without, you'll get that actually most people end up with Android, because they have hundreds of models suitable for every use.
 
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I have said it before and I will say it again, is it really fair to compare one iOS and several phones from one MFG to that of Multiple MFG of phones and many different versions of Android.

Personally the Fragmented Android Ecosystem will keep me using iOS because it works, I do not need a million apps to do 500,000 things. iOS now that it includes Pages, Numbers, and Keybote is all I need for work and personal and it just works well. We will see what Apple does at WWDC and in September
 
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?
.

German consumers are cheap. It is sad but it is true. It is why Android here is so big here. Most people also do their shopping when there is a BIG SALE sign. Otherwise, not much. There is a big reason why all economies went down while the Germany didn't get affected. They are careful with money. :D
 
And the point of analyzing market share is, what exactly? Why is this important?


It's not really. It's only one parameter and in this case comparing Apples (!) to oranges. It's not really important to BMW that the market share of GM is higher. They might be interested in how they are doing compared to Lexus and Audi. Same here. How many 500-600 dollar Android phones are sold in the respective countries? That would be more relevant.

What counts overall is revenue in the specific market segment and how much synergy has been created with other products. Take me: I bought an iPhone because I sort of had to (with Blackberry no more). Then the wife got one as well. Then came the Apple desktop and two laptops (partially because I like the integration I'm getting, partially because the stuff is pretty nice, partially I really didn't want any Windows 8 machine and Linux is unfortunately not an option for what I do for the most part). So there. Few more devices to come and a family has spend $10K on new gear. Samsung will not sell more microwaves just because the market segment for phablets is picking up with poor people and gaming kids. Sorry if that sounds harsh, but that's kind of what it is. And that's why I believe Apple is making a mistake if they release two large new phones. And the "leaked" images look cheap and trashy.
 
In practical terms Android is cheaper and more functional, and ease of use or good ecosystem is not of very big importance to europeans. Also, while Apple products are great for "consumer" use like music, photos, web browsing, etc, they are in many ways unsuitable for professional use, because it's hard to modify their software and hardware, there is basically only one iPhone and not dozens of models suitable for specific uses.
For example, if I want to write notes with a stylus, I have to buy Android tablet, even if I like Apple very much. If you add up these small cases where people prefer Android only because one specific feature that generally no one wants, but few people can't live without, you'll get that actually most people end up with Android, because they have hundreds of models suitable for every use.
It might be a good time to remind everyone that the ecosystem presented to Europeans is usually a lot worse (when it even exists) than that one available to USA customers.
 
So correct me if I'm wrong, but is this saying Apple's smartphone market share in China, the market for whom the gold iPhone 5s and iPhone 5c were supposedly at least partially targeting, has gone down?
 
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.

That comparison doesn't make sense when we've got a $180 Moto G performing as well as a $450 iPhone 4s.
 
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.

That's been the case with 4s, too. The only 'S' which remained relevant and competitive until its successor was released was the 3GS; it's truly the phone where Apple moved from early adopters/POC stage to a superior product.

4s was hip for 6 months, 5s was hip for 5 months, 5c was hip for 2 hours :D
 
The title of this story should be more like..

"Apple gets it's ass handed to them by Android"

or

"Elvis and iPhone are still King in Japan.. everywhere else.. just Elvis"

I really feel Apple has to drop an A-Bomb of a product on the industry.. and I don't mean a thinner iPhone with a bigger screen.. to stem the tide.

They need another game changer.
 
Android is only able to go downhill from here.

We'll see Windows phones growing, Amazon phones gaining, and Apple continuing to sell more and more phones.

But Apple's marketshare is not going to dominate no matter what.

You can't be a premium brand and enjoy the majority marketshare position against lots of competitors. Premium implies higher cost, and higher cost is never going to have majority marketshare.

Apple could compete at the bottom in two seconds however. They only have to lower the price of the 4S for instance.

Why don't they? Simple, they don't want to be Dell Computer.
 
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