Apple Surpassed Samsung as World's Largest Smartphone Maker in Fourth Quarter

[MacRumors]

Apple overtook Samsung to become the largest smartphone vendor worldwide in the fourth quarter of 2020, a feat not achieved by Apple since 2016, according to market data by Gartner.

In the final quarter of 2020, Apple sold 80 million new iPhones, largely driven by the launch of the first 5G-enabled iPhone series. Anshul Gupta, Senior Research Director at Gartner, says that 5G and improved camera features helped convince customers to upgrade to iPhone 12 models in the final quarter of the year.

Even as consumers remained cautious in their spending and held off on some discretionary purchases, 5G smartphones and pro-camera features encouraged some end users to purchase new smartphones or upgrade their current smartphones in the quarter.

Compared to 2019, Apple sold more than 10 million extra iPhones in the fourth quarter and saw its global smartphone market share increase by almost 15%. Samsung, the closest rival to Apple, saw its market share decrease by 11.8% and sold around eight million fewer devices compared to just one year ago, according to the market data.

Apple's near 15% increase in market share yielded it an "upgrade super-cycle," according to Annette Zimmerman, the lead analyst for Apple at Gartner, quoted by the Financial Times. In Q1 of 2021, Apple saw its largest number of iPhone upgrades ever, according to CEO Tim Cook. The iPhone alone generated more than $65 billion in revenue for the first quarter of the year.

For the greater picture, however, global smartphone sales decreased by 12.5% in 2020. Out of the top five smartphone makers, Apple and Xiaomi were the only two unscathed by the global decline in sales. Apple's growth comes despite the fact that it launched its iPhone 12 series out of the normal September timeframe due to the global health crisis.

Across the board, the accelerated growth of 5G adoption around the world drove up demand for 5G compatible smartphones. In a year stricken by economic difficulties, consumers were looking for lower-end, affordable 5G smartphones, instead of higher-end models with price tags of up to $1,500. On that front, the iPhone 12 mini, despite reports of it performing poorly relative to other iPhone 12 models, likely helped Apple overtake Samsung thanks to its small form factor and relatively affordable $699 price tag.

Looking further ahead into 2021, Gartner expects that the availability of lower-end 5G smartphones, such as the iPhone 12 mini, will be a "deciding factor for end users to upgrade their existing smartphones." Apple is expected to continue the "mini" model for next year's model, and the entire iPhone 13 lineup is rumored to feature an under-the-screen Touch ID sensor, always-on-display, and improved cameras.

Article Link: Apple Surpassed Samsung as World's Largest Smartphone Maker in Fourth Quarter

 

[gnasher729]

These reports of bad 12 mini sales make me laugh. There are plenty of people going to a shop to buy a 12mini, then they see that they can get a much bigger iphone for almost the same money, change their mind and buy the bigger phone, and Apple is laughing all the way to the bank.

 

[chucker23n1]

These reports of bad 12 mini sales make me laugh. There are plenty of people going to a shop to buy a 12mini, then they see that they can get a much bigger iphone for almost the same money, change their mind and buy the bigger phone, and Apple is laughing all the way to the bank.

There's also oddly never a report over how "the Samsung Galaxy M31 sold really poorly compared to the S20 and therefore should be discontinued".

 

[Unggoy Murderer]

Apple has an iPhone at nearly every price point between £400 and £1100 which will certainly be helping - and all of them are premium devices. The iPhone SE's probably the best value phone on the market right now.

 

[djcerla]

… and think about what it could do if it had a keyboard!

 

[SnakeEater1993]

Aaaand the 1Q21 will be won again by Samsung...Nevermind, I just want my 13 pro max with ltpo pro motion and touch id...

 

[rp2011]

Good news on the face of it. But concerning too if the trend continues too far, with antitrust issues and oversaturation.
Also, healthy competition drives innovation and staves off the inevitable stagnation that comes whenever someone has a healthy lead over the competition.

 

[chucker23n1]

(I wouldn't read too much into these numbers. 2020 was an unusual year for Apple, and to use their parlance, it makes for a "tough compare". Once 2021 numbers are out a year from now, it's probably best to compare them to 2019, not 2020.)

 

[GuruZac]

There's also oddly never a report over how "the Samsung Galaxy M31 sold really poorly compared to the S20 and therefore should be discontinued".

I saw and held the iPhone 12 Mini for the first time this past weekend and other than it’s price point, I was really impressed.

 

[Khaleesi Kendall]

Apple has an iPhone at nearly every price point between £400 and £1100 which will certainly be helping - and all of them are premium devices. The iPhone SE's probably the best value phone on the market right now.

and then when you realize you can get last year’s se for as low as $49 or a new iPhone XR at $299 depending on prepaid carrier deals it’s hard not to see why

 

[gnasher729]

and then when you realize you can get last year’s se for as low as $49 or a new iPhone XR at $299 depending on prepaid carrier deals it’s hard not to see why

I have seen US prices and UK prices, and the monthly rates that US carriers charge seem extraordinarily high for me. I pay about £15 for a monthly plan, and it's not the cheapest, and an IPhone XR over 3 years shouldn't add more than another £15 to that.

 

[dabi]

Apple is slowly becoming a monopoly, especially when it comes to the high-end market. That's concerning.

 

[Dave245]

Apple have a great lineup with devices at different prices. The iPhone is a popular device but Apple need to keep up with innovation. People really like iPhone's and for good reason.

 

[koil]

These reports of bad 12 mini sales make me laugh. There are plenty of people going to a shop to buy a 12mini, then they see that they can get a much bigger iphone for almost the same money, change their mind and buy the bigger phone, and Apple is laughing all the way to the bank.

Not saying I disagree with you at all, but I want to emphasise that there certainly exists people who do not see "bigger phone" as a selling point. They may however, see that they can get a roughly the same size phone for a much smaller amount (the SE), and instead leave with that over the 12 mini.

Disclaimer: Extremely happy 12 mini owner. Future 15 Pro mini owner. 🤞🤞

 

[coachgq]

I saw and held the iPhone 12 Mini for the first time this past weekend and other than it’s price point, I was really impressed.

I ended up with one for that reason. I like the size and when I found an iPhone 8 for $100 to trade in, my mini was free. Yes, 24 bill credits but the chances of me leaving T-Mobile for another carrier were probably <1%.

 

[a m u n]

… and think about what it could do if it had a keyboard!

---

In Europe, at least, Samsung sells many phones with 70€ or 100€, like J2 or A2. 😀

 

[Wildkraut]

Great, this will serve to open the platform and allow side loading

 

[chucker23n1]

View attachment 1733518

Sure. I don't think Steve quite saw what was going to happen. By the time he realized it (around 2009), it was already too late; Windows Phone 7 had little chance to catch up.

 

[I7guy]

Apple is slowly becoming a monopoly, especially when it comes to the high-end market. That's concerning.

Apple is becoming a monopoly at the high end? Because other manufacturers are failing to innovate and hence sell phones?

 

[I7guy]

The chart shows numbers I didn't think it was possible for Apple to achieve.

 

[chucker23n1]

The chart shows numbers I didn't think it was possible for Apple to achieve.

Well, year-end figures for Apple are apparently 199.8M, which is still well below the 2015 peak of 231.5M, and roughly within 10% of what Apple has been selling since ~2014:

The unusual thing here is that a lot of sales have shifted to the fourth quarter. The pandemic plays a significant role here.

 

[ghanwani]

Bodes well for the future of the mini!

 

[The Game 161]

The fact they are doing this with no 100-300 priced phones is amazing really as thats where a lot of Samsung’s sales come from. It apple are dominating the low end £399 and mid range at say 599-699 and also the 999 to 1399 range then it really puts them in great shape. The fact the 12 pro max was the best selling phone in US given the price point is impressive.

 

[1258186]

Presumably Samsung will take the lead again once S21 sales are added. I don’t really care who is number one, it doesn’t affect my buying decisions.

 

[digger10]

Well, year-end figures for Apple are apparently 199.8M, which is still well below the 2015 peak of 231.5M, and roughly within 10% of what Apple has been selling since ~2014:

View attachment 1733526

The unusual thing here is that a lot of sales have shifted to the fourth quarter. The pandemic plays a significant role here.

Wouldn't that be a function of Apple shifting its the iPhone launch from Sept to October, as you say, due to the pandemic? It would make sense that more iPhones were sold in the 4th quarter.

Similarly, one would guess Samsung shifting the S21 launch this year back from March to Jan would depress sales in the quarter immediately before it?