Gartner: iPhone market share down three percent in March quarter
- updated 01:17 am EDT, Sun May 22, 2016
-
by MacNN Staff
by MacNN Staff
iPhone faced with currency challenges, rising Chinese makers
The latest research data from Gartner shows Apple's first year-over-year decline in iPhone sales coincided with a reduced share of the global smartphone market. Although the global smartphone market grew by just 3.9 percent year-over-year, Apple was notable for going backwards. Although holding its position as the number two smartphone maker in the world, its market share slid from 17.9 percent to 14.9 percent. Whatever the exact cause of the decline, Gartner's data shows that Apple is not immune to the increasing rise of Chinese smartphone makers.
"In a slowing smartphone market, where large vendors are experiencing growth saturation, emerging brands are disrupting existing brands' long-standing business models to increase their share," said Anshul Gupta, research director at Gartner. "With such changing smartphone market dynamics, Chinese brands are emerging as the new top global brands. Two Chinese brands ranked within the top five worldwide smartphone vendors in the first quarter of 2015, and represented 11 percent of the market."
Apple has forecast another difficult quarter ahead, placing at least some of the blame for its current challenges on the strong US dollar. With the dollar stronger against numerous currencies, Apple has put greater emphasis on retaining its overall margins by moving the pricing of its products up in line with currency movements in those countries and markets, rather than absorbing any of the costs by either keeping its pricing stable in global markets, or lowering them to help stimulate sales.
Like Apple, Samsung's market share also took a backward step, although it was not as sharp as Apple's. Samsung's share declined year-over-year by 0.9 percent to 23.2 percent, down from 24.1 percent. Chinese makers, however, generally enjoyed a promising quarter. Huawei was the biggest winner for the quarter, with an 8.3 percent market share, up from 5.4 percent, with Oppo also making a gain. It held a 4.6 percent share of the market for the March quarter, up from two percent during the same period last year. Xiaomi held steady with a 4.3 percent share.
"In a slowing smartphone market, where large vendors are experiencing growth saturation, emerging brands are disrupting existing brands' long-standing business models to increase their share," said Anshul Gupta, research director at Gartner. "With such changing smartphone market dynamics, Chinese brands are emerging as the new top global brands. Two Chinese brands ranked within the top five worldwide smartphone vendors in the first quarter of 2015, and represented 11 percent of the market."
Apple has forecast another difficult quarter ahead, placing at least some of the blame for its current challenges on the strong US dollar. With the dollar stronger against numerous currencies, Apple has put greater emphasis on retaining its overall margins by moving the pricing of its products up in line with currency movements in those countries and markets, rather than absorbing any of the costs by either keeping its pricing stable in global markets, or lowering them to help stimulate sales.
TAGS
Now AAPL Stock: The symbol you provided ("AAPL") doesn't appear to be registered
Cirrus creates Lightning-headphone dev kit
Apple supplier Cirrus Logic has introduced a MFi-compliant new development kit for companies interested in using Cirrus' chips to create Lightning-based headphones, which -- regardless of whether rumors about Apple dropping the analog headphone jack in its iPhone this fall -- can offer advantages to music-loving iOS device users. The kit mentions some of the advantages of an all-digital headset or headphone connector, including higher-bitrate support, a more customizable experience, and support for power and data transfer into headphone hardware. Several companies already make Lightning headphones, and Apple has supported the concept since June 2014. http://bit.ly/29giiZj
Apple Store app offers Procreate Pocket
The Apple Store app for iPhone, which periodically rewards users with free app gifts, is now offering the iPhone "Pocket" version of drawing app Procreate for those who have the free Apple Store app until July 28. Users who have redeemed the offer by navigating to the "Stores" tab of the app and swiping past the "iPhone Upgrade Program" banner to the "Procreate" banner have noted that only the limited Pocket (iPhone) version of the app is available free, even if the Apple Store app is installed and the offer redeemed on an iPad. The Pocket version currently sells for $3 on the iOS App Store. [32.4MB]
Porsche adds CarPlay to 2017 Panamera
Porsche has added a fifth model of vehicle to its CarPlay-supported lineup, announcing that the 2017 Panamera -- which will arrive in the US in January -- will include Apple's infotainment technology, and be seen on a giant 12.3-inch touchscreen as part of an all-new Porsche Communication Management system. The luxury sedan starts at $99,900 for the 4S model, and scales up to the Panamera Turbo, which sells for $146,900. Other vehicles that currently support CarPlay include the 2016 911 and the 2017 models of Macan, 718 Boxster, and 718 Cayman. The company did not mention support for Google's corresponding Android Auto in its announcement. http://bit.ly/295ZQ94
Apple employees testing wheelchair features
New features included in the forthcoming watchOS 3 are being tested by Apple retail store employees, including a new activity-tracking feature that has been designed with wheelchair users in mind. The move is slightly unusual in that, while retail employees have previously been used to test pre-release versions of OS X and iOS, this marks the first time they've been included in the otherwise developer-only watchOS betas. The company is said to have gone to great lengths to modify the activity tracker for wheelchair users, including changing the "time to stand" notification to "time to roll" and including two wheelchair-centric workout apps. http://bit.ly/2955JDa
SanDisk reveals two 256GB microSDXC cards
SanDisk has introduced two 256GB microSDXC cards. Arriving in August for $150, the Ultra microSDXC UHS-I Premium Edition card offers transfer speeds of up to 95MB/s for reading data. The Extreme microSDXC UHS-I card can read at a fast 100MB/s and write at up to 90MB/s, and will be shipping sometime in the fourth quarter for $200. http://bit.ly/294Q1If
Apple's third-quarter results due July 26
Apple has advised it will be issuing its third-quarter results on July 26, with a conference call to answer investor and analyst queries about the earnings set to take place later that day. The stream of the call will go live at 2pm PT (5pm ET) via Apple's investor site, with the results themselves expected to be released roughly 30 minutes before the call commences. Apple's guidance for the quarter put revenue at between $41 billion and $43 billion. http://apple.co/1oi1Pbm
Twitter stickers slowly roll out to users
Twitter has introduced "stickers," allowing users to add extra graphical elements to their photos before uploading them to the micro-blogging service. A library of hundreds of accessories, props, and emoji will be available to use as stickers, which can be resized, rotated, and placed anywhere on the photograph. Images with stickers will also become searchable with viewers able to select a sticker to see how others use the same graphic in their own posts. Twitter advises stickers will be rolling out to users over the next few weeks, and will work on both the mobile apps and through the browser. http://bit.ly/29bbwUE
Inkling Grizzled Veteran Joined: Jul 25, 2006
What's a strong dollar got to do with products sold and assembled overseas with parts made overseas? Indeed, given that Apple hoards almost all its foreign income in foreign banks, a strong dollar is only relevant in ways that should raise Apple's domestic profits. It pays less in dollars for what it sells in the U.S. Methinks Apple has simply gotten addicted to high profits and, now that the smartphone market is more competitive, is facing pressures on those profits. Apple is living in the past and must adapt or suffer the consequencies.
Spheric Harlot Clinically Insane Joined: Nov 07, 1999
Originally Posted by Inkling
What's a strong dollar got to do with products sold and assembled overseas with parts made overseas? Indeed, given that Apple hoards almost all its foreign income in foreign banks, a strong dollar is only relevant in ways that should raise Apple's domestic profits. It pays less in dollars for what it sells in the U.S. Methinks Apple has simply gotten addicted to high profits and, now that the smartphone market is more competitive, is facing pressures on those profits. Apple is living in the past and must adapt or suffer the consequencies.
This is not about how much money Apple is making; it's about how many people are buying their phones. Apple sells them for dollars, and a strong dollar means products are more expensive abroad.
Steve Wilkinson Senior User Joined: Dec 19, 2001
Originally Posted by Inkling
What's a strong dollar got to do with products sold and assembled overseas with parts made overseas? Indeed, given that Apple hoards almost all its foreign income in foreign banks, a strong dollar is only relevant in ways that should raise Apple's domestic profits.
For sure. For example, I'm trying to wait-out a currency adjustment for CAD store, and hoping CAD goes up with respect for USD before I purchase a couple of things. I don't see any reason the products *have* to be based on USD, and then so slow to react to currency fluctuations. Why not an average of parts and labour converted to whatever native currency where they sell? (i.e.: if it's mostly in China, some R&D in USA, then it would be some percentage China/USD -> CAD for the Canadian market. Currently, Apple just picks a point once per year or something and sets all the price-points against the USD.)
Originally Posted by Spheric Harlot
Apple sells them for dollars, and a strong dollar means products are more expensive abroad.
Yea, but why? It's an international company, with much of the expense/labour, etc. not based in the US anyway.
Originally Posted by NewsPoster
Apple has forecast another difficult quarter ahead, placing at least some of the blame for its current challenges on the strong US dollar. With the dollar stronger against numerous currencies, Apple has put greater emphasis on retaining its overall margins by moving the pricing of its products up in line with currency movements in those countries and markets, rather than absorbing any of the costs by either keeping its pricing stable in global markets, or lowering them to help stimulate sales.
Bingo, it's a choice they are making. They are choosing to base on USD to maximize their profit margins at the cost of reduced sales. It's probably because they think the brand is strong enough and their on top of the mountain. I guarantee if this continues too long, they'll adjust their strategy.
DiabloConQueso Grizzled Veteran Joined: Jun 11, 2008
So you'd rather be surprised every morning when you visit the online Apple Store, with prices different than they were the day before, due to fluctuating labor costs and currency strengths and weaknesses?
You'd want a MacBook Pro to be 2,000 CAD one day, then 1,900 CAD the next, and then 2,100 CAD the day after that?
I highly doubt you really would.
Steve Wilkinson Senior User Joined: Dec 19, 2001
Originally Posted by DiabloConQueso
So you'd rather be surprised every morning when you visit the online Apple Store, with prices different than they were the day before, due to fluctuating labor costs and currency strengths and weaknesses?
You'd want a MacBook Pro to be 2,000 CAD one day, then 1,900 CAD the next, and then 2,100 CAD the day after that?
I highly doubt you really would.
Actually, yes, given the current situation. Since most of what I deal with on a daily basis is priced in USD, the amount of money in exchange that I lose (very seldom gain) does, in fact, vary daily (hourly, by the minute).
I'm not saying Apple has to adjust prices in real-time (as most of my purchases are), but they could re-evaluate it a bit more regularly. For example, about a month or so ago, if I bought an iPhone SE, I'd lose like $75 CAD over what a direct exchange rate purchase from the US would be. Currently, I'd lose about $50. I'd rather save that $50.
Spheric Harlot Clinically Insane Joined: Nov 07, 1999
Originally Posted by Steve Wilkinson
Yea, but why? It's an international company, with much of the expense/labour, etc. not based in the US anyway.
Do you think they pay Foxconn in yuan? Of course not. Apple's entire operations are built on long-term contracts in dollars, end-to-end.
Steve Wilkinson Senior User Joined: Dec 19, 2001
Originally Posted by Spheric Harlot
Do you think they pay Foxconn in yuan? Of course not. Apple's entire operations are built on long-term contracts in dollars, end-to-end.
I can wait until they properly adjust the currency again, then.