Research claims that while the entire market's smartphone profits declined by around a tenth in 2019, Apple continued to dominate with 66% of all profits and the nearest competitor being Samsung on just 17%.
Apple's share of the global smartphone market fell year-over-year in the June quarter from 11.3% to 10.1%, attributable by a research firm mostly because of better performance by Chinese vendors and Korea's Samsung.
While some rivals appear set to launch hardware with support for nascent 5G wireless technology in 2019 at some point, Apple looks like it's going to wait another year before making an iPhone that can use them — like it did twice before.
It's not news that Apple is grabbing all the profits in the smartphone industry. But new data shows that Apple's most expensive new iPhone flagships are accomplishing this largely on their own, indicating that analyst chatter about smartphone users really wanting cheaper devices is totally delusional.
For decades, market research firms have been confidently asserting that the "winners" in PCs, tablets, smartphones and other consumer electronics are not firms that are profitable or even sustainable, but merely those shipping the largest volumes at any given time. This has enabled them to crown a successive line of failed players, then rapidly move on to a new "winner," often within the same year. The bigger problem for this sort of flawgic is that the game itself is changing.
Last year, Samsung's exploding Galaxy Note 7 created a catastrophically distracting meltdown for the company that enabled Apple to surpass it in total unit sales of smartphones during the winter quarter. This year, Apple has again surpassed sales of all Samsung smartphones in the quarter, except this time it's by virtue of trend-bucking new demand for the innovative, revolutionary iPhone X—without much apparent regard for its price.
Android smartphone manufacturers are looking towards developing more foldable phones to offer consumers a larger display to compete against bigger handsets like the iPhone 8 Plus, a report claims, with a number of vendors said to be working on mobile devices using multiple screens to create a larger display area.
Apple's iPhone X — the first iPhone with a "TrueDepth" camera — may not be the only smartphone suffering from problems with 3D sensor production, as shipments for competing products are also reportedly being delayed.
Young smartphone buyers in China are preferring to buy low-priced domestic brands over phones from Samsung, but the loyalty rate in buying another Oppo or Vivo phone is half that of buyers getting another iPhone— which remains the largest installed smartphone base in China.
Low-end Chinese phones from companies that barely turn a profit and sell their cheaper products outside of urban centers are growing fast, but, Apple has an 80 percent lock on premium phone sales in China that isn't weakening. That's fueling Services and driving buyers into Apple Stores for other premium gear.
Possibly offering a peek into Apple's March-quarter results due to be revealed May 2, data released on Thursday estimated that Apple shipped some 51.6 million iPhones during the period, a slight improvement over 51.2 million a year prior.
The launch of Samsung's 2017 flagship Galaxy S8 isn't causing any apparent concern among Apple's investors, who collectively pushed the company's stock even further upward today despite the announcements—and the continuous run up in Apple stock that has occurred since the iPhone maker last released earnings in January.
LeEco, the Chinese firm reported to be "taking on" Apple (as well as Tesla and Netflix) less than a year ago in an ambitious American expansion with new headquarters in San Jose, is now laying off employees and selling its property after running out of cash.
Apple's decline in Chinese iPhone shipments during 2016 can be blamed on the company refusing to adapt its tactics to the local market out of fear of risking its business elsewhere, according to Duan Yongping, the founder of Chinese smartphone brands Oppo and Vivo.