Global Smartphone Market Grows in Q1 2016 as iPhone Share Shrinks to 14%

Discussion in 'iOS Blog Discussion' started by MacRumors, May 20, 2016.

  1. MacRumors macrumors bot

    MacRumors

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    Apple's global smartphone market share fell to 14.8 percent in the first quarter of 2016, down from 17.9 percent in the same period the previous year, despite a 3.9 percent growth in overall smartphone sales compared to Q1 2015, according to Gartner (via DigiTimes).

    The number of smartphones delivered to end users in Q1 totalled 349 million globally, compared to 336 in the same period in 2015. Apple shipped 51.6 million iPhones to maintain its number two spot in the top five largest makers, while Samsung reached unit sales of 81.2 million to maintain its position as number one. The figures show Samsung extended its lead over Apple in the same period with a 23.2 percent market share, despite a slight decline from 24.1% in Q1 2015.

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    Oppo had the best performance in the first quarter of 2016, moving into the number 4 position among the top-five smartphone vendors with unit sales growth of 145%. Like Huawei and Xiaomi, Oppo saw strong growth in China, taking share from the likes of Lenovo, Samsung and Yulong, Gartner indicated.

    The overall growth in smartphone sales was put down to a demand for low-cost handsets in emerging markets and more affordable 4G promotion plans globally.

    In a separate note disclosed by research firm IDC yesterday, more Google Chromebooks were sold in the U.S. in the first quarter of 2016 than Apple's entire Mac line.

    Apple's Mac shipments are estimated to have been around 1.76 million in Q1 this year, according to an IDC analyst who spoke to The Verge, while combined estimates for Dell, HP, and Lenovo put the number of low-cost Chromebooks sold at 2 million in the same quarter.

    IDC put the Chromebook's sales growth down to their appeal in the education sector, with wide uptake across K-12 schools in the United States. The milestone also comes at a time when Mac sales have held steady while PC shipments have seen an overall decline, making the news more of a concern for Microsoft as it tries to maintain its dominance in the low-cost laptop market.

    The research firm also predicted a "modest rebound" over the coming months as buyers consider transitioning to Windows 10 and a continued increase Chromebook sales.

    Article Link: Global Smartphone Market Grows in Q1 2016 as iPhone Share Shrinks to 14%
     
  2. BarmyGnome macrumors 6502

    BarmyGnome

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    The iPhone 7 better be revolutionary.
     
  3. H2SO4 macrumors 601

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    #3
    In before, ‘Market share doesn’t matter as Apple take most of the profits’, or, ‘People are waiting for the iPhone7’, but not, ‘People might actually prefer Android'.
     
  4. emm386 macrumors 6502

    emm386

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    #4
    A not insignificant loss of market share on a growing market? Neglecting natural fluctuations due to product cycles, this is usually super alarming...

    But dont worry, Tim Cook has a super "innovative" plan here! Rather than having a word with his software department regarding its recent software quality standards or releasing real hardware innovations, Apple is about to conquer the Indian market...

    Thats not the Apple i have grown to love in the past... Good luck nontheless.
     
  5. ArtOfWarfare macrumors G3

    ArtOfWarfare

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    #5
    Will we be hitting peak cellphone soon?

    It seems like 3% growth is abnormally low. Might we see it go down next year?
     
  6. slenpree macrumors 6502a

    slenpree

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    #6
    This does not take into account the iPhone has dominant market share in Canada, Australia, Japan and varies between 48/52% market share in the UK and US on a year by year basis.
     
  7. M. Gustave macrumors 68000

    M. Gustave

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    #7
    Comparing sales of $250 internet-only Chromebooks to $900 and up Macs is ridiculous.

    Having said that, Apple should have answered the Chromebook problem with iOS long ago.
     
  8. Crosscreek macrumors 68030

    Crosscreek

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    #8
    I see the Chinese phone manufacturers bringing on quality products that will out pace more expensive "flagship" phones because of price. Apple taught them all the need to know to make quality products.

    I would be surprised to see iPhones in the India's market as a hole a big seller. People cannot afford them.

    The Chinese will probably be a major player in most western countries also.
     
  9. Col4bin macrumors 68000

    Col4bin

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    #9
    I would assume that Apple's Q2 and Q3 iPhone numbers this year will be even worse? If rumors are true, a stylistically similar iPhone 7 that looks almost identical to the previous iPhone 6 and 6S versions before it might also be a tough sell. In light of U.S. carriers doing away with 2-yr subsidy plans, I can see consumers opting for a 6 or 6S instead of paying a premium price for a 7 with only some internal spec enhancements.
     
  10. apolloa macrumors G4

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    #10
    That's bad to lose significant market share whilst the market is actually growing!
    It points to someone being left behind the market conditions I think.
    And as Apple must have 4 or 5 iPhone models on sale now then they will need to look at there strategy before they fall to number three in the rankings.
     
  11. H2SO4 macrumors 601

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    #11
    I don’t think companies look at stuff like that. I think most, mine included, sell the minimum they can get away with.
     
  12. apolloa macrumors G4

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    #12
    So your company takes no interest in the market share they have? Or when that market share shrinks whilst the market they are in is growing?
    Is that what your saying?
    And as for sell the 'minimum' they can get away with! Not a very good business plan.
     
  13. itguy06 macrumors 6502a

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    Sure it is. Leaves room for upgrades with minimal effort. It's actually a smart business plan.
     
  14. Aston441 macrumors 65816

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    #14
    Smartphones, which in the end are just small computers with a small display, are finally just a common commodity to most of the world. Only in a wealthy countries is it still fashionable to have an "expensive" one to show off. The functionality of a cheap $150 smartphone is the same as a $950 iP6s+128 for the vast majority of people, so when having a fancy smartphone ceases to be fashionable, uh oh.
    Residents of poor countries never had the option of being fashionable in the first place, which is why iPhone has never been a factor in the third or second world.
    I've always wondered about the wisdom of Apple positioning itself as a fashion company. It's been working so far however, so I guess Apple is being run by people way smarter than me.
     
  15. Sandstorm, May 20, 2016
    Last edited: May 20, 2016

    Sandstorm macrumors 6502a

    Sandstorm

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    #15
    Imagine if the rumors about the meh iPhone 7 are true...

    As soon as I can get Galaxy S7 Edge (or very similar truly innovative, waterproof, awesome phone) with pure Android, I'm out. The hardware part of many Android flagships has long surpassed anything Apple offers. And the Android software not only has caught up - it is vibrantly alive and bursting with real innovation. All the services, voice recognition, VR, Google Home, Maps etc etc - all is lightyears ahead of the nickel-and-diming "innovators-my-ass" (I used to love Apple keynotes, now I just can't stand the smug Schiller & co).
     
  16. smacrumon, May 20, 2016
    Last edited: May 20, 2016

    smacrumon macrumors 68030

    smacrumon

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    #16
    When you stop making great products, what do you expect? That's where it needs to get back to, great products. We've been missing that since before the introduction of iPhone 6. Pricing is a very big problem as well. iPhone 6s is at least $200 overpriced, or more accurately, Apple is taking an unnecessary and greedy premium for doing nothing of substance in improving their models in recent years.
     
  17. apolloa macrumors G4

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    You mean like Apples yearly incremental updates? Lots of people on here complaining about that approach it seems, even more so if this years iPhone rumours are true which considering who's been saying them, plus the fact Apples suppliers have reduced their forcasts and orders, are most likely true.

    I'm not sure Sony or Microsoft as one example would consider selling the 'minimum' they can as being a smart move for the games console market.
     
  18. I7guy macrumors Core

    I7guy

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    If that's true, Samsung and HTC are going down also. However until these brands have apples reputation and support I'm not switching any time soon.
     
  19. 69Mustang macrumors 604

    69Mustang

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    #19
    In a report about the world smartphone market share, how is singling out the market share in CAN, AUS, JPN, UK, and US going to be relevant? Also in a report about world market share, do you think the aforementioned countries are not a part of the world? Or somehow didn't get counted?

    If you do take your information into account, how would it change the world market share? I haven't had coffee yet so I'm confused.
     
  20. I7guy macrumors Core

    I7guy

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    This and the above applied to expensive flagships. However having played around with this category of phone, I don't mind paying for an iPhone.
     
  21. Someyoungguy macrumors 6502

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    #21
    I have bought 4 iPhones in the last 8 years, but never for fashion. This sounds like a comment from someone who has never tried Windows or Android (or an iPhone). Well, I have, and I kept coming back because the iPhone works the best. Saying people buy it for fashion is a red flag to me, akin to reading "iSheep".
     
  22. maflynn Moderator

    maflynn

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    #22
    There's plenty of rumors pointing to a major update in 2017, so perhaps the iPhone 7 may not be revolutionary.
     
  23. Shirasaki macrumors G3

    Shirasaki

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    #23
    Samsung --> Galaxy S7 Edge. Waterproof, edge display etc.
    Apple --> iPhone 6s series. 3D Touch, Live Photo etc.
    Huawei --> Huawei P9. Dual lens camera etc.
    Oppo --> I don't know.
    Xiaomi --> I don't know.

    Hmm. if those three in-the-list Chinese companies marketshare are combined, then they can just surpass Apple marketshare, but still not possible to overcome Samsung marketshare.

    Apple would turn to promote iOS 10 rather than new device? Let me see what Apple would give us in WWDC 2016.

    World is just changing too fast. We cannot catch up.
     
  24. 2457282 Suspended

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    #24
    As an investor, I am happy to see Apple continue to make profits, but the lower quarterly results and reports like this are a concern.

    As a purchaser, I am interested in buying a quality product and the ranking on the world stage should be only a minor input into my decision. It is nonetheless an indicator to consider, given some recent quality issues. On the whole I am still attracted to the whole Apple ecosystem and cross platform integration.

    Rankings like this, however, suggest that the differentiator is becoming less so, as others are building out their own ecosystem and improving quality. Apple next steps will be very telling.
     
  25. MH01 Suspended

    MH01

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    #25
    Well the 6S was not a major update for many, and the American dollar has meant prices across the world went up .

    I hope 7 is a new design, cause if it's the existing 6 one, the downward spiral might continue.
     

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130 May 20, 2016