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Thursday, December 22, 2011, 09:12 am
iPhone market share grows in US & UK, but falls across Europe
New data shows Apple's iPhone 4S launched helped it gain market share in the U.S. and U.K., though price sensitivity in Europe has allegedly cost Apple ground.Apple's share of smartphone markets across the globe were revealed in a new report from London-based research firm the Kantar Group, as detailed by Reuters. The study found that the iPhone has been gaining ground in Great Britain, the U.S. and Australia, though "this trend is far from universal."
Problems for Apple exist in Europe, where Google's Android platform has been making gains because of low-priced devices. In particular, Apple saw its smartphone share drop from 29 percent to 20 percent in France, where the report said there are "increasing signs of price sensitivity."
Similarly, Apple's smartphone share fell from 27 percent to 22 percent in Germany, while other iPhone drops were seen in Italy and Spain. The report noted that sales of "the expensive Apple model," the new iPhone 4S, were affected by weakening economies across Europe.
While Apple's smartphone share has apparently dropped across Europe, Google has maintained control. The study found that Android accounts for between 46 and 61 percent in all markets.
Business and consumer confidence in Europe are particularly low, as the continent is in the midst of a financial crisis stemming from government debt. The report noted Europeans are "keeping a lid on their expenses," which is likely to have affected iPhone sales outside of the U.K.
As for the U.S., the report largely aligns with a separate study conducted by the NPD Group, which revealed last week that Apple's iPhone and Google Android currently account for 82 percent of the smartphone market. Android-based smartphones had a 53 percent share by the end of October, while Apple's iPhone accounted for 29 percent.
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I relate this only to point out that sales of Droids etc. do not mean the loss of a sale for Apple .... I was with a realtor who had a new Droid yesterday, we were both waiting on a home inspection that took several hours. She had to plug her Droid in to use it as it never stayed charged for more than half a day she explained. She spent some time looking over my iPhone 4s and was blown away. Siri litteraly shocked her. When I explained iCloud and pulled out my iPad and also told her about ATV she was drooling. My MBPro was the final blow, she was in love. The only snag was she needed Windows for two applictions not available on Mac, so i launched VMWare and asked if she preferred XP, Vista or 7? She called today and asked if I could give her an hour or so to put together an Apple Eco system shopping list for her and her family, they had decided to convert entirely. This happens to me several times a month.
Apple might be the first casualty in the coming prepaid wars. People say they want their phones to have resale value but that is only if you buy them at $650+ in the first place. iPhone 4 class Android phones are all over my local CL for barely $150-200. At some point Apple's margins are either going to take a hit, or they are going to cede marketshare.
Problems for Apple exist in Europe, where Google's Android platform has been making gains because of low-priced devices. In particular, Apple saw its smartphone share drop from 29 percent to 20 percent in France, where the report said there are "increasing signs of price sensitivity."
Bullshit. iPhones can be had for free.
It isn't price sensitivity. People simply prefer other phones. If it were price sensitivity, they could demonstrate that all expensive phones are lagging in sales.
But the iPhone spans the price gamut. So at any and all price points, people see other phones that they like better.
Prepaid iPhones (PAYG) are actually quite popular in the UK. Infact all the 5 iPhone carriers over here are fighting each other in the prepaid market massively for smartphones, free data etc.
Funny how its grown in english-speaking countries, while fallen in others.
During the iPhone 4 cycle- they could not keep up with demand for 9 months. The have not been able to keep up with demand for the iPhone 4s for 3 months now and they have yet to launch China. At this point, it does not matter how much they lower the price, they cannot make them faster than they currently are. Only when they start to have extra capacity after 3 months or so will they need to look at selling them cheaper. Then they will have to decide if they make more money selling more at a lower margin.
If you look at the Mac - they have a 5% global share - but take most of the profits and continue to grow faster than the general PC market (even without counting the iPad as a PC).
I relate this only to point out that sales of Droids etc. do not mean the loss of a sale for Apple .... I was with a realtor who had a new Droid yesterday, we were both waiting on a home inspection that took several hours. She had to plug her Droid in to use it as it never stayed charged for more than half a day she explained. She spent some time looking over my iPhone 4s and was blown away. Siri litteraly shocked her. When I explained iCloud and pulled out my iPad and also told her about ATV she was drooling. My MBPro was the final blow, she was in love. The only snag was she needed Windows for two applictions not available on Mac, so i launched VMWare and asked if she preferred XP, Vista or 7? She called today and asked if I could give her an hour or so to put together an Apple Eco system shopping list for her and her family, they had decided to convert entirely. This happens to me several times a month.
Once someone sees all the pieces working together in action they usually see the value and why Apple products cost more. This is where Apple needs more focus, showing all the extra value you get for your money with Apple.
I relate this only to point out that sales of Droids etc. do not mean the loss of a sale for Apple .... I was with a realtor who had a new Droid yesterday, we were both waiting on a home inspection that took several hours. She had to plug her Droid in to use it as it never stayed charged for more than half a day she explained. She spent some time looking over my iPhone 4s and was blown away. Siri litteraly shocked her. When I explained iCloud and pulled out my iPad and also told her about ATV she was drooling. My MBPro was the final blow, she was in love. The only snag was she needed Windows for two applictions not available on Mac, so i launched VMWare and asked if she preferred XP, Vista or 7? She called today and asked if I could give her an hour or so to put together an Apple Eco system shopping list for her and her family, they had decided to convert entirely. This happens to me several times a month.
Love it. Couldn't have showed her better myself.
Forget those numbers. Apple's biggest problem is their ridiculous currency hedging. They do their pricing by assuming Euro/USD parity, while the Euro has been around 1,30 - 1,40 USD for most of the year.
Assume the iPad at 499 USD should be around 360-380 Euros. In fact it is 479 EUR.
So everyone I know travelling to the US will bring back Apple stuff and make friends and family happy or sell it with a decent margin on ebay.
I guess in Asia the same thing is happening.
So take like 5-10% off the US Numbers (minimum) and add half of that to the EU numbers and half of this to the Asian ones.
Apple should definitely reconsider their pricing in Europe, if they don't want to be suffering for years trying to regain that lost market share. There is no reason why an iPad in Greece should cost 30% more than in the US ... Ridiculous...
Max
Apple might be the first casualty in the coming prepaid wars. People say they want their phones to have resale value but that is only if you buy them at $650+ in the first place. iPhone 4 class Android phones are all over my local CL for barely $150-200. At some point Apple's margins are either going to take a hit, or they are going to cede marketshare.
Yes, yes, Apple is doomed. Tell us something we don't know.
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The latest report is until the end of November, so a rush on the new iPhone and the cheaper old iPhones still leaves Apple a distant second to Android in the US, Australia and UK, and not even in the race in many other countries.
At least the new iPhone and cheaper 4 and 3 have dented Androids growth in three countries. Something to chear about for Apple fans - at least until the big companies release their flagship ICS and start blowing apple away again. I know I am holding off on a new phone until the new HTC ICS top-end phone.