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

[I7guy]

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.

I'm not worried, Apple can't and is not going to compete in the cheap android phone market. Profits are important but as has been suggested by BH buying Apple, the company has changed and will continue to thrive.(and no it's not going blackberry)

As long as Apple makes products I like to use, I will buy their products no matter what the market share.

 

[usamaah]

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.

As I understand it the education market is choosing Chromebooks over iPads too, so the market is giving us an idea of that already. I do find it news worthy that Chromebooks surpassed Macs, but it's a reflection of how we use our computers, not a sign of declining popularity for Mac.

As you said, Apple should've responded to the education market with a more suitable iOS device. Students benefit from having a keyboard and cheap plastic electronics that aren't expensive to fix or replace. Once Chromebooks support Android apps I think iPads will be an even tougher sell.

As for comparison with Macs. My parents, my wife, they only need a browser and occasionally word processing and printing. Chromebooks (with a cloud printer) take care of their needs. A Mac of any kind is overkill for that. The iPad is comfortable to use in bed but it's more expensive and in their minds less productive (smaller screen for standard size, no keyboard had to pay extra).

 

[samcraig]

The big takeaway is how Apple is losing on a significant revenue stream source against Chromebooks in the educational market. This was a segment which seemed as though Apple could and would dominate.

 

[Mildredop]

The iPhone 7 better be revolutionary.

As an ex-iPhone user, I believe the next iPhone just needs to focus on giving people genuinely useful features at a reasonable (but not necessarily cheap) price.

Stuff like 3D touch grabs some headlines, but is ultimately fairly pointless. More useful would be things like an SD card slot (rather than charging $100+ to get a bit more memory), considerably better battery life (I forever see people charging their iPhones), fast charging (I no longer charge overnight, but for an hour each morning) and, dare I say, a notification light (although I guess Apple will never adopt this, even though it's one of the most useful features).

 

[emm386]

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.

Apple's reputation and support? I was denied a home button repair of my 5S still within warranty (but not Apple Care) in an official Apple Store. Genius claimed, my phone had "liquid damage". It has never EVER seen a raindrop from close distance... So much for Apple's reputation and support...

 

[Mildredop]

Apple taught them all they need to know to make quality products.

This is so true. Move production of the best smartphone in the world to China, and you teach China how to make the best smartphone in the world. But cheaper.

 

[usamaah]

As an ex-iPhone user, I believe the next iPhone just needs to focus on giving people genuinely useful features at a reasonable (but not necessarily cheap) price.

Stuff like 3D touch grabs some headlines, but is ultimately fairly pointless. More useful would be things like an SD card slot (rather than charging $100+ to get a bit more memory), considerably better battery life (I forever see people charging their iPhones), fast charging (I no longer charge overnight, but for an hour each morning) and, dare I say, a notification light (although I guess Apple will never adopt this, even though it's one of the most useful features).

Great list. Come to the dark side brother, we have all of what you need

But seriously I have an iPad (to give you an idea I do use iOS) and I owned an iPhone for 6 days before returning it. For phone I've only been happy with Android, but if those features were implemented in an iPhone I would seriously consider trying it out again.


EDIT: Just saw you said ex-iPhone, haha so we're in the same boat

 

[KALLT]

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'.

Not necessarily preferring Android, just preferring a phone that fulfils the same needs, with an equal, or nearly equal, hardware quality for a fraction of the price. Hence Huawei and Oppo becoming more popular, in turn making Android more popular, as it is the only phone OS available with considerable market penetration and the freedom to skin the device and bundle additional apps. Apple is still targeting a high-price market that is becoming increasingly commodified. Now that Windows 10 Mobile is failing and BlackBerry is (pretty much) gone, Apple is effectively the only manufacturer left that is not using Android.

 

[H2SO4]

This is so true. Move production of the best smartphone in the world to China, and you teach China how to make the best smartphone in the world. But cheaper.

Because the Chinese have none of their own technology/R&D and have invented/will invent nothing without us developed westerners?

 

[dwaltwhit]

the growing global smartphone market is, for the most part, in emerging markets. Those markets are most likely not buying high end phones.

 

[I7guy]

Apple's reputation and support? I was denied a home button repair of my 5S still within warranty (but not Apple Care) in an official Apple Store. Genius claimed, my phone had "liquid damage". It has never EVER seen a raindrop from close distance... So much for Apple's reputation and support...

I can only speak for myself(which I did); with tens of millions of devices individuals will have their own stories.

 

[blackcrayon]

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.

Who, pray tell, isn't making "incremental updates"? I'd like to know. It isn't as if 12 months is enough time for technology to be reinvented.

 

[EricTheHalfBee]

Oh look, yet ANOTHER report comparing sales of McDonalds burgers (cheap Android phones) to T-Bone steaks (iPhone).

 

[Fall Under Cerulean Kites]

I have enough disposable income that price is taken out of the equation for me. I want a device that’s secure, that I don’t have to fiddle with, and that has a tightly integrated ecosystem that allows me to share information easily. I care nothing about “fashion.” What do I have ? An iPhone. An iPad. A MacBookPro.

Apple is losing market share because people are not able to make the same decisions and have to be cost conscious. Some people just don’t care and want the cheapest they can buy. But let’s face it people. Android is ****. The platform is so fractured and there is no continuity between one vendor’s phone and the other with regard to software updates. Old phones are not at all updated, and security holes remain open.

Take a look at Samsung. They ALSO lost market share. They lost it to these junky Chinese ‘droid companies that no one has ever heard of. Samsung makes nice hardware. They make **** software though. And their devices still run Android. No thanks.

I’m not saying that Apple’s not in trouble with the iPhone. They probably are. But not because they suck.

 

[dumastudetto]

Apple is still making ALL the money in the smartphone market. That's the only metric I've ever cared about. I don't care about marketshare and that Apple is being outsold by OEMs lucky to turn one dollar profit on each unit sale. Profit is king, Apple are still the industry leaders by a billion miles.

 

[Ries]

Oh look, yet ANOTHER report comparing sales of McDonalds burgers (cheap Android phones) to T-Bone steaks (iPhone).

Apple sells plenty of McDonalds burgers. Old iPhones, old iPads with outdated tech and macs that feel like from the turn of the century.
[doublepost=1463751767][/doublepost]

Apple is still making ALL the money in the smartphone market. That's the only metric I've ever cared about. I don't care about marketshare and that Apple is being outsold by OEMs lucky to turn one dollar profit on each unit sale. Profit is king, Apple are still the industry leaders by a billion miles.

They have the market share because they reinvest, not banking the money and paying dividends. Profit metric is meaningless.

 

[samcraig]

Apple is still making ALL the money in the smartphone market. That's the only metric I've ever cared about. I don't care about marketshare and that Apple is being outsold by OEMs lucky to turn one dollar profit on each unit sale. Profit is king, Apple are still the industry leaders by a billion miles.

meaningful only in context of a stockholder. As a consumer - why would you be excited that a company is making such margins on your purchase?
[doublepost=1463752035][/doublepost]

Apple sells plenty of McDonalds burgers. Old iPhones, old iPads with outdated tech and macs that feel like from the turn of the century.
[doublepost=1463751767][/doublepost]

They have the market share because they reinvest, not banking the money and paying dividends. Profit metric is meaningless.

It's a faulty analogy anyway. McDonalds makes a ton of profits. And people love McDonalds. Also McDonald's is a brand and steaks are an item. The fact that Apple's products sell in costco, walmart, etc negates the argument that they are some "premium" or exclusive product compared to their competitors.

 

[EricTheHalfBee]

Apple sells plenty of McDonalds burgers. Old iPhones, old iPads with outdated tech and macs that feel like from the turn of the century.
[doublepost=1463751767][/doublepost]

They have the market share because they reinvest, not banking the money and paying dividends. Profit metric is meaningless.

Lies. BTW, in case you didn't notice, this article is about smartphones. So let's stay on topic, shall we?

The majority of Android phones sold around the world are $200 or less. Many of them are only $100. Even Samsung sells $100 Android phones (brand new, full retail price, no subsidy or contract). Please find me any listing, anywhere in the world, where Apple sells an iPhone (refurbished or new) that's anywhere close to $200, let alone $100. Good luck.

Their market share has nothing to do with reinvesting money. It has to do with the fact most people in the world can't afford a $600+ phone. They buy Android because that's all they can afford, not because they actually wanted a device with Android installed.

 

[dumastudetto]

meaningful only in context of a stockholder. As a consumer - why would you be excited that a company is making such margins on your purchase?

I love Apple. I love their products. In order for them to keep investing, keep driving forward with new innovations and new products that thrill me, they need to keep making money. So regardless of whether you own AAPL shares, if you love Apple products then you should be delighted that they are still making lots of money and profit. It's making as much money as possible that secures their ability to keep making new iPhones, iPads, Macs, Watches, etc.

 

[emm386]

But let’s face it people. Android is ****. The platform is so fractured and there is no continuity between one vendor’s phone and the other with regard to software updates. Old phones are not at all updated, and security holes remain open.

Let's face it in all honesty. The Android platform is not '****'. If it was, highly priced android phones would not sell at all. But they do, to some extent. I quite frankly agree to Android having a fair amount of problems, the iOS platform does not have, never did, and probably will never have. At the same time, I can see these problems getting less and less by every major release. While with recent iOS release, I rather see it the other way around. Android is a highly customizable platform (for vendors AND users alike) with liberties, iOS will probably never offer. Please don't be fooled by CEO propaganda: Android phones do NOT crash on a daily basis. They admittedly used to, but thats a long time ago.

To sumit up: iPhone with ActiveSync for my work stuff, Android for my personal use: I couldnt be happier as i enjoy the best of two worlds at the same time!

 

[samcraig]

I love Apple. I love their products. In order for them to keep investing, keep driving forward with new innovations and new products that thrill me, they need to keep making money. So regardless of whether you own AAPL shares, if you love Apple products then you should be delighted that they are still making lots of money and profit. It's making as much money as possible that secures their ability to keep making new iPhones, iPads, Macs, Watches, etc.

And I'll just say that's a very myopic view
[doublepost=1463753515][/doublepost]

Let's face it in all honesty. The Android platform is not '****'. If it was, highly priced android phones would not sell at all. But they do, to some extent. I quite frankly agree to Android having a fair amount of problems, the iOS platform does not have, never did, and probably will never have. At the same time, I can see these problems getting less and less by every major release. While with recent iOS release, I rather see it the other way around. Android is a highly customizable platform (for vendors AND users alike) with liberties, iOS will probably never offer. Please don't be fooled by CEO propaganda: Android phones do NOT crash on a daily basis. They admittedly used to, but thats a long time ago.

To sumit up: iPhone with ActiveSync for my work stuff, Android for my personal use: I couldnt be happier as i enjoy the best of two worlds at the same time!

It's faulty logics here too (with the OP). iOS users do get regular FULL OS updates (and across devices at the same time). However, Google has set up Android now where all the core apps, and many of the functions controlled by play services are updated (and frequently) through Google. It's a different model than Apple uses. So it's not like the OS isn't really updated... it is.

I'll also add that while I might be the minority on HERE - I don't buy tech on what it MAY do in the future - I buy it for what it can do today. So I appreciate OS updates, etc - if my device doesn't get one, while I may feel a bit jealous of new features, it doesn't anger me. As long as what I bought does what I need and what it was intended to do.

 

[boccabella]

IDC, the "company" that said Windows Phone would surpass iPhone by 2016.

 

[now i see it]

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

Wow, now the real statistics are coming out. No wonder Carl Icahn dumped [ALL] his Apple stock. All of it.

 

[69Mustang]

I have enough disposable income that price is taken out of the equation for me. I want a device that’s secure, that I don’t have to fiddle with, and that has a tightly integrated ecosystem that allows me to share information easily. I care nothing about “fashion.” What do I have ? An iPhone. An iPad. A MacBookPro.

Apple is losing market share because people are not able to make the same decisions and have to be cost conscious. Some people just don’t care and want the cheapest they can buy. But let’s face it people. Android is ****. The platform is so fractured and there is no continuity between one vendor’s phone and the other with regard to software updates. Old phones are not at all updated, and security holes remain open.

Take a look at Samsung. They ALSO lost market share. They lost it to these junky Chinese ‘droid companies that no one has ever heard of. Samsung makes nice hardware. They make **** software though. And their devices still run Android. No thanks.

I’m not saying that Apple’s not in trouble with the iPhone. They probably are. But not because they suck.

Anecdotes are only apropos to the individual making them. Sure, for some cost is an issue. But to make a sweeping generalization that Android market share is only cost driven is shortsighted and wrong. Like you, I don't have an issue with disposable income. Also like you, I want a device that's secure, that I don't have to fiddle with, and has an integrated ecosystem that allows me to share information easily. What do I have? An S5. iPads. PC's. An MBA. Chromebooks. Laptops. All secure, none need fiddling, and I can access my info from any one of them with no issue.

As for software updates... I'm on an S5 - running Marshmallow. Also you may not be familiar with how Android updates but core features don't need an OS update. They're separate. See, an anecdote. It's only relevant to me, just like yours is only relevant to you.

 

[Karma*Police]

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'.

But your first statements are true. As the article states, growth came from lower priced handsets which Apple doesn't compete in. The only true measure of success in any business is profit. It's the oxygen that keeps them alive.

As for your last statement, everyone's entitled to their opinion, but Apple has repeatedly said that they're getting record number of switchers from Android every quarter which tells me that most iPhone owners are content with the iPhones they have and are waiting for a major catalyst to upgrade.