Apple's Smartphone Growth Slows as Mobile Phone Market Accelerates in 2Q 2013

[mib1800]

"mostly from top end phones"? That is a very wrong statement. Among the 70 million smart phones Samsung sold in 2Q 13', the top end phone made up less than 40% of them. Of course, that's not the case when you talk about the total profits generated by the top ends vs. the lower ends.

Not sure whether your "less than 40%" is correct since in the quarter 23 million s4 was sold. That's for only about 2 out of 3 months in that quarter. Add to that S3, note 2 and those mega.

Even if your estimate is correct that 40 percent equate to 28 mil high end phones. How many ip5 out of 31 mil that apple sold? Maybe 20 mil.

 

[richeyty]

Who cares? Iphone is cool

 

[Rogifan]

Not sure whether your "less than 40%" is correct since in the quarter 23 million s4 was sold. That's for only about 2 out of 3 months in that quarter. Add to that S3, note 2 and those mega.

Even if your estimate is correct that 40 percent equate to 28 mil high end phones. How many ip5 out of 31 mil that apple sold? Maybe 20 mil.

What's your source for that 23M figure?

 

[mib1800]

What's your source for that 23M figure?

www.samsungupdate.com/news/samsung...n-q2-becomes-the-most-profitable-manufacturer

 

[ElTorro]

It doesn't bode well for Ipad either...

First half of 2013 in Western Europe

http://www.teleread.com/tablet/context-data-shows-android-tablets-leading-europe-ipads-slipping/

''

Android tablets: 61.2%
Ipad: 37.2%
other: 1.6%


2013 First Quarter

Image

Wouldn't be surprised to see Android Tablet at 75% market share in the near future. Something like this within 2 years....

Android tablets: 75%
Ipad: 20%
Window tablet: 5%

Why? A top of the line 7" 16GB HD Android tablets are now on sales for $159...It's hard to compete with that.

80% / 20% duopology will continue:

Windows / Macs
Android phone / iphone
Android tablets / Ipad

It will be sooner than later. Android is at 67% and iOS is at 28% right now.

http://9to5google.files.wordpress.com/2013/07/strategy-analytics-tablets-q2-2013.png?w=329&h=231

 

[cg0def]

Can you tell me where are those secret warehouses full of not sold smartphones? Thanks

Actually your comment is quite silly for reason that you seem to not be aware of. Sold means that the devices has been ordered. Doesn't even mean that the client has paid for them or that they have received it. There could be a considerable delay between sold, received, sold to an end client, and actually paid to the manufacturer. Also, a lot of the large carriers (all of the US ones) tend to have agreements where they can send back unsold inventory. Apple is actually one of the few manufacturers that refuses to sign deals like that.

So now that you are aware of the details above, maybe you can understand why your comment is a bit too naive ... and don't worry, there are a lot of high paid marketing execs that make the exact same mistake as you. Actually, the author of this *brilliant* piece of market research probably is just as clueless ....

 

[Oletros]

Actually your comment is quite silly for reason that you seem to not be aware of. Sold means that the devices has been ordered. Doesn't even mean that the client has paid for them or that they have received it. There could be a considerable delay between sold, received, sold to an end client, and actually paid to the manufacturer. Also, a lot of the large carriers (all of the US ones) tend to have agreements where they can send back unsold inventory. Apple is actually one of the few manufacturers that refuses to sign deals like that.

So now that you are aware of the details above, maybe you can understand why your comment is a bit too naive ... and don't worry, there are a lot of high paid marketing execs that make the exact same mistake as you. Actually, the author of this *brilliant* piece of market research probably is just as clueless ....

Silly and naive is bringing again and again the stupid "shipped is not sold" when the ****ing shipping units, revenue and profits grow quarter after quarter.

Can you post a single proof of the sipped units are not sold in its entirety or not?

 

[EbookReader]

Apple can't compete in China now...not with the Iphone 5C at $733.

This phone is $326 no contract, unlocked in China

Nvidia Tegra4 quad-core 1.8GHz A15 + A15 or
Qualcomm Snapdragon 800 quad-core 2.3GHz CPU

Sharp/LG 5″ 1080P IPS display with ultra-sensitive touch
2GB LPDDR3 RAM
16GB or 64GB 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

$733 vs. $326

Easy choice for buyers. The maker of the Xiaomi Mi3 is now valued at $10 billion USD. Not bad for a company that formed 3 years ago and sold its first smartphone less than two years ago.

It is expected to more than double its sales in 2013 to 20 millions smartphones (7.9 mil sold in 2012).

 

[alent1234]

How much is their profit?

Apple can't compete in China now...not with the Iphone 5C at $733.

This phone is $326 no contract, unlocked in China

Nvidia Tegra4 quad-core 1.8GHz A15 + A15 or
Qualcomm Snapdragon 800 quad-core 2.3GHz CPU

Sharp/LG 5″ 1080P IPS display with ultra-sensitive touch
2GB LPDDR3 RAM
16GB or 64GB 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

Image

$733 vs. $326

Easy choice for buyers. The maker of the Xiaomi Mi3 is now valued at $10 billion USD. Not bad for a company that formed 3 years ago and sold its first smartphone less than two years ago.

It is expected to more than double its sales in 2013 to 20 millions smartphones (7.9 mil sold in 2012).

 

[alent1234]

And the billion android activations are the same guy deep inside googleplex activating the same 10 phones millions of times?

Actually your comment is quite silly for reason that you seem to not be aware of. Sold means that the devices has been ordered. Doesn't even mean that the client has paid for them or that they have received it. There could be a considerable delay between sold, received, sold to an end client, and actually paid to the manufacturer. Also, a lot of the large carriers (all of the US ones) tend to have agreements where they can send back unsold inventory. Apple is actually one of the few manufacturers that refuses to sign deals like that.

So now that you are aware of the details above, maybe you can understand why your comment is a bit too naive ... and don't worry, there are a lot of high paid marketing execs that make the exact same mistake as you. Actually, the author of this *brilliant* piece of market research probably is just as clueless ....

 

[Spacial]

Those who continue to live in denial should enjoy it. At some point Apples decline (Not Demise) will accelerate unless they ease up on their constant burning desire to fight it out in court, instead of generating positive energy and fresh new products.

 

[EbookReader]

How much is their profit?

Xiaomi said they are emulating Amazon. That should tells you all you need to know about profit. They focus right now is on growth/market share. Their strategy is selling high specs device at break-even prices.

They makes money off selling services (apps and accessories etc..).

They also make a mid range phone and selling it for $130 USD, unlocked, no contract

quad-core MediaTek CPU
4.7 inch 720p screen (312ppi) with Gorrilla Glass 2
1GB RAM
4GB Storage with microSD slot expansion to 32GB
8 megapixel rear camera

It is selling VERY well....

The company has been garnering success in mainland China by inspiring the loyalty of many consumers with its competitively-priced phones, as seen in the most recent batch of 100,000 Hongmi smartphones that sold out in 90 seconds, with nearly 7.5 million devices reserved by fans who missed out.

Apple can't compete against Xiaomi in China.

 

[kdarling]

Actually your comment is quite silly for reason that you seem to not be aware of. Sold means that the devices has been ordered. Doesn't even mean that the client has paid for them or that they have received it.

According to their filings, both Apple and Samsung count a device as sold when ownership has transferred and they can reasonably expect payment for it.

Apple says that's usually when the device is shipped to a retailer. For Samsung, it's when the device arrives at the retailer.

Both companies account for returns separately.

Both companies have quarters where retailers order too many devices, cannot sell them all, and thus sales are not as high the next quarter. Then they catch up again. Only if sales continued to lag, would there be any reason to think that end user sales were dropping.

 

[EbookReader]

http://www.geekwire.com/2013/apples-chances-china-hurt-rise-xiaomi/
Apple’s chances in China hurt by the rise of Xiaomi

Xiaomi’s smartphone sales volume has been so prolific that in August the company marked two major achievements: more smartphone sales in China than Apple and the highest selling single smartphone in the Chinese market, its Mi 2S. Xiaomi’s executives celebrated these developments by announcing an increase in their projections for 2013 smartphone sales from 15 million to 20 million. If these projections prove prescient, the company will have realized a 178 percent increase in annual smartphone sales in 2013 alone.

The rapidity with which Xiaomi has been able to go from non-existence to mobile market success is shocking.

Since the company inception, it has produced these phones:

Flagship

Mi 1
Mi 2
Mi 2S
Mi 3

mid-range:

Hongmi 1

 

[StoneJack]

Xiaomi said they are emulating Amazon. That should tells you all you need to know about profit. They focus right now is on growth/market share. Their strategy is selling high specs device at break-even prices.

They makes money off selling services (apps and accessories etc..).

They also make a mid range phone and selling it for $130 USD, unlocked, no contract

quad-core MediaTek CPU
4.7 inch 720p screen (312ppi) with Gorrilla Glass 2
1GB RAM
4GB Storage with microSD slot expansion to 32GB
8 megapixel rear camera


Image


It is selling VERY well....



Apple can't compete against Xiaomi in China.

Why should Apple compete against Xiaomi? They have two different business models and in terms of profit, actually Apple's profit is highest in industry, both in terms of margins and volumes. Xiaomi? Not so much. Xiaomi competes not with Apple but with a myriad of unknown or China-exclusive companies and has to sell cheap and hope to earn something on related things. Of course when someone gives away for free competing products, all competitors, not just Apple, hurt but thats business and in US for example Amazon follows a same model but you don't see Apple giving its hardware away for less than a cost because of that. Similarly, you won't see Apple doing it in China as well. In both cases, cheap pricing gets market share, but Apple gets most of profit, which enables it to invest into newer services, new hardware and expand their offerings. Give away model is quite limited in that sense, unless you sell really huge volumes of low margin hardware. This is possible right now for smartphones, but once market saturates, limits of such growth will be felt immediately (witness what happened to Dell and its stock).

 

[egoistaxx9]

apple makes only one phone in the whole year and still, they're the 3rd biggest smartphone vendor, that's awesome

 

[heutusops]

LG is the one who surprised me, what a huge jump. feeling sad for HTC, i always found HTC the most innovative company in the android pack

 

[SA Spyder]

Make or break? That's pretty extreme.

Not really. Hordes of people switched to Android/WP after seeing that iOS 7 turned into a gay club.

Also, Xiaomi is a really talented group of people. Their MIUI theme/OS is beautiful.

 

[StoneJack]

Not really. Hordes of people switched to Android/WP after seeing that iOS 7 turned into a gay club.

Also, Xiaomi is a really talented group of people. Their MIUI theme/OS is beautiful.

Of course, you happen to know about those "hordes" some numbers?

 

[SA Spyder]

Of course, you happen to know about those "hordes" some numbers?

Yes check out the alternatives section, check out local ad listings for people wanting to trade, check out XDA spike in popularity, check out shipment data in the OP.

 

[iphoneclassic]

Well 5C & 5S are not going to make it any better. 5C is totally unnecessary, they could have dropped 4S and continue cheaper IP5 and IP5S.

It all boils down to Apple picking fights with suppliers. I believe they cannot get enough supply of LCD to increase the screen size.

Last year they wasted much of the software development efforts on Maps/IOS6 bugs.

They are spending way too much money on Chip design and (indirect)fabrication.

Not sure which demography they are targeting with 5C, at $733 price point it is definitely not China, not teenage girls in US.

After IP5 scratch/dent fiasco, I won't trust Apple with build quality. I want to see initial reviews of build quality. We don' know what surprises are in IOS7. Beta testers as always very quiet. Just save 6.1.4 SHSH blobs.

 

[cwwilson]

Apple continues to release subpar phones year after year after year and they wonder why they are getting killed by Samsung. I can't believe that in 2013 Apple's flagship phone has a tiny 4" non-HD screen, a dual core CPU, 1GB RAM, and an 8MP camera. Specs matter, and Apple has been behind the curve for what....three years now? Not since the release of the iPhone 4 has the flagship iPhone actually challenged the top Androids.

 

[xofruitcake]

Not sure which demography they are targeting with 5C, at $733 price point it is definitely not China, not teenage girls in US.

he heh are you sure? Iphone 5s and 5C both have versions that support TD-LTE and only six handset so far get China government approval for TD-LTE (ZTE, Samsung note 2, Sony Huawei are the other 4). And China mobile is supposed to roll out TD-LTE to 100 cities. It ordered 1M TD-LTE enabled phone for 15 cities test trial. Want to guess how many 5C and 5S, Apple will sell in the TD-LTE roll out?

http://english.caixin.com/2013-09-10/100580441.html

On September 9, the Ministry of Industry and Information Technology approved four mobile phone models to use the TD-LTE 4G network that China is building. The approved devices are from Samsung, ZTE Corp., Huawei Technology Co. and Sony.
An industry insider predicted ZTE's U9815 handset, which supports four network standards including TD-LTE, will be the first 4G device in the China market.
More than ten types of 4G device were sent to the ministry for review. Analysts expect more permits will be issued soon.
Under a plan unveiled in February, China Mobile, the country's largest telecom operator and the leader of efforts to develop the homegrown 4G network, will build TD-LTE networks in more than 100 cities around the country this year and buy 1 million 4G handsets from equipment makers.

----------

Apple continues to release subpar phones year after year after year and they wonder why they are getting killed by Samsung. I can't believe that in 2013 Apple's flagship phone has a tiny 4" non-HD screen, a dual core CPU, 1GB RAM, and an 8MP camera. Specs matter, and Apple has been behind the curve for what....three years now? Not since the release of the iPhone 4 has the flagship iPhone actually challenged the top Androids.

And how do you count the 64bit A7, the M7 and finger sensor in 5s vs NFC and large screen that all Android phone are focusing on now on the innovation scale? Out of the 3, M7 is the most impressive even though it does not have any immediate impact to sales this year. It is also the hardest for Android phone maker to respond. It is a Chicken and egg problem. Without the motion sensors, no one can develop any app. Handset makers like Samsung, ZTE etc are not going to put another 15-20 build cost into including a motion sensor (and they have t design it themselves too. Which Android maker will do that?) into their phone without seeing any immediate sales increase. So next year, we will start see a lot of motion and location related app on IOS that no one else has. And I bet there is no way Android phones will respond. NFC are supposed to take over the world now. Where are the killer apps for NFC?

Didn't Samsung said that their next smartphone will include 64bit CPU (but they didn't know when )? So they think that it is an important tech that they are behind. I think 5S spank the rest of the smartphone world in innovation scale..

 

[cgsnipinva]

My wife, son and sister in law traded in their Android phones for iPhone 5s. I am holding off for the 5s for the better camera.

 

[twoodcc]

i guess we'll see how the new iPhones do