iPhone gaining US marketshare, slipping in China & Europe, say March-quarter numbers

While Apple's iPhone is increasingly ubiquitous in the U.S., the product's share is declining in urban China and the five major European markets, according to new research estimates.

U.S. iPhone share rose 6.5 percentage points year-over-year to 45.5 percent, Kantar said on Tuesday. European share fell 2 points to 20.1 percent, while China slipped 0.4 points to 21.7 percent.

Apple's strong U.S. performance was credited to the iPhone XR, said to have accounted for over 1 in 10 of every smartphone sold in the country. It also propped up Apple's European sales, for instance topping all smartphones in Great Britain. In Europe as a whole the iPhone XR outsold the iPhone XS and iPhone XS Max combined.

"As smartphone prices rise rapidly, iPhone XR provides Apple with a way to keep its customers with older models continuing to upgrade regularly, and less tempted by the competition," wrote Kantar's Dominic Sunnebo.

In both China and Europe, pressure on Apple came from Chinese brands Huawei and Xiaomi. The company's greatest European competition though is Samsung, and unlike Apple, its bestselling flagship models are the more expensive Galaxy S10 and S10+ rather than the S10e.

Apple is still recovering from a relatively disastrous December quarter which saw iPhone revenue plummet 15 percent year-over-year. This was primarily blamed on China, and since then Apple has instituted price cuts and extended trade-in bonuses to stay competitive.

Common criticisms of Apple have been that its designs have stagnated, and/or that it has raised iPhone prices too far. The entry-level 2018 model, the XR, is $749 in the U.S. and yet more expensive elsewhere — mid-range Android phones like the OnePlus 6T are meanwhile offering competitive features for less money.

Apple is poised to reveal its official March-quarter earnings on April 30.

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12 Comments

iOS_Guy80

said about 4 years ago

Research estimates and financial analyst commentary creates buying opportunity.

avon b7

said about 4 years ago

iOS_Guy80 said:

Research estimates and financial analyst commentary creates buying opportunity.

To a degree yes. But what are you buying into?

Apple's biggest earner and the reason it is where it is, is the iPhone. Four years of stagnant sales have dampened expectations. As prices hit the consumer ceiling, sales even contracted and are thought to be contracting YoY.

iPhone is only a part of the business but it remains a large part. How you see it balancing out its other revenue generators, growth perspective and how much of that is tied to iPhone sales, will allow you to see what you are buying into.

It looks like competitors are eating more and more into Apple's pricing bands and providing more capable phones at better (flexible) pricing.

I was surprised to see Samsung's more expensive models seemingly outperforming the cheaper option. XR seemingly outselling the XS and Max combined in Europe didn't come as such a surprise.

Apple lacks real competition in the US but the EU and China will be very challenging, especially as Xiaomi and Oppo are agressively rolling out distribution networks.

The Chinese brands in particular are making life hard for Apple.

Still, after the jolt last quarter, Apple hasn't revised initial guidance down which must be seen as a plus. The question though will be how iPhone is performing as a business unit.

minisu1980

said about 4 years ago

Any source on this new research? This data seems less doom and gloom than the typical market share reporting on Apple.

gatorguy

said about 4 years ago

minisu1980 said:

Any source on this new research? This data seems less doom and gloom than the typical market share reporting on Apple.

Kantar WorldPanel. They deal more in consumer-based surveys for their results. Others such as IDC appear to rely more on various retailers and industry contractors for compiling their estimates. At the end of the day they are all estimates so take your pick of which ones you like and which ones you don't.