Apple’s iPhone Is Closing In on Samsung Smartphone Sales

[Dari]

With Samsung's smartphone sales falling 50% in the world's largest smartphone market, it was only a matter of time before they lost the title as the world's largest smartphone maker. But many expected the title to be passed on to a bottom-feeder Chinese OEM. It looks like it's going to Apple instead. How will Samsung respond? With new commercials talking about committed iPhones fans are to the brand (insulting the very people they're trying to switch, really smart marketing) or how iPhones are this, that or the third? I'm waiting with bated breath

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Apple’s iPhone Is Closing In on Samsung Smartphone Sales

Apple Is Selling More iPhones Than Ever, and More Expensive Phones

By DAISUKE WAKABAYASHI
Jan. 26, 2015 1:32 p.m. ET

Strong sales of Apple Inc. ’s new iPhones are pushing the company close to rival Samsung Electronics Co. as the world’s top seller of smartphones.

Samsung overtook Apple as the biggest smartphone maker in the third quarter of 2011, according to research firm Canalys. Since then, Samsung has maintained its lead—in shipments if not profits—by offering a wide range of phones.

But Samsung’s share has been falling, hurt by lackluster sales of its flagship models and the rise of homegrown brands in fast-growing emerging markets. In the third quarter, Samsung shipped about 78 million smartphones, about 25% share of the global market, down from 34% a year earlier, Canalys said.

Enter Apple’s new bigger-screen iPhone 6 and iPhone 6 Plus, which went on sale in September. Analysts polled by Fortune forecast that Apple sold 66.5 million iPhones in the quarter ended Dec. 27, up 30% from a year earlier. Some analysts expect iPhone sales to eclipse 70 million units in the quarter.

“It’s going to be closer than it’s ever been since Samsung took the lead,” said Chris Jones, principal analyst at Canalys.

Apple is expected to disclose iPhone sales Tuesday with quarterly financial results that are expected to include its most profitable quarter ever. Analysts are forecasting Apple to post revenue of $67.5 billion, up 17% from a year earlier, net income of $15.3 billion and earnings per share of $2.58, according to Thomson Reuters. Samsung reports its results on Thursday.

Apple and Samsung declined to comment.

Apple is benefiting from pent-up demand from consumers who waited for iPhones with bigger displays, which proved popular for Samsung and other makers of phones running Google Inc. ’s Android software.

Earlier this month, Kantar Worldpanel ComTech said Apple gained share against Android devices in the U.S., Germany, Great Britain, Australia and Spain for the three months ended November. In China, the world’s biggest smartphone market, Apple’s share increased but its growth was outpaced by Android.

To be sure, Apple’s fiscal first quarter is typically its biggest for sales. It coincides with the holiday shopping season and usually follows a new iPhone release. Sales then fall in the following three months—by 14% last year.

Canalys’ Mr. Jones said Samsung devices are struggling to stand out from a glut of other Android devices. It’s also losing ground to local players in emerging markets, such as Xiaomi Inc. in China and Micromax Informatics Ltd. in India. Apple has weathered the competition better because of its appeal among high-end consumers.

Since 2013 when Samsung’s market share lead peaked, Apple also has struck deals with new carriers including China Mobile Ltd. and NTT DoCoMo Inc., the largest carriers in China and Japan, respectively.

Apple isn't only selling more iPhones than ever, it’s also selling more expensive phones. The iPhone 6 Plus costs $100 more than Apple’s previous high-end model. Plus, Apple is also enticing consumers to upgrade to more expensive models with greater memory.

In the past, Apple offered its latest iPhones with 16 gigabytes, 32 gigabytes, or 64 gigabytes of memory. Each increase added $100 to the price.

With the iPhone 6 and 6 Plus, Apple kept the same pricing model, but offers 16 gigabytes, 64 gigabytes or 128 gigabytes of memory. That has made it more attractive to upgrade, because of the bigger difference in storage between the base model and the larger-capacity versions.

The iPhone 6 Plus and memory upgrades are expected to have increased the average selling price of iPhones by 5% from a year earlier, Morgan Stanley analyst Katy Huberty wrote in a report last week.

 

[poofyhairguy]

Yeah this was obvious. With a large iPhone on the market I expect Apple to be a solid 50% of US phone sales for a few years. I also expect a cost difference between iOS and Android to become apparent.

Most of the movement now is in developing markets where Apple simply isn't a player. NA is important to the top tier Android OEMs, but the volume is in china and india at sub $200 price points.

 

[dawheat]

With Samsung's smartphone sales falling 50% in the world's largest smartphone market, it was only a matter of time before they lost the title as the world's largest smartphone maker. But many expected the title to be passed on to a bottom-feeder Chinese OEM. It looks like it's going to Apple instead. How will Samsung respond? With new commercials talking about committed iPhones fans are to the brand (insulting the very people they're trying to switch, really smart marketing) or how iPhones are this, that or the third? I'm waiting with bated breath

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I'm fine with how Samsung is responding.

- Release the best Android phablet hands down in practically every respect, possibly the best phone in the market today.
- Seriously redesign the S6 - all signs point to this
- Improve the build of your entire line in the A series
- Simplify TW and significantly improve performance in 5.0 (see Note 3 5.0 build testing)
- Use internal advantages to create separation such as the new Exynos SOC which looks substantially faster than the S810 and superior AMOLED screens
- Innovate in interesting, even if niche areas, like the Gear VR. No gimmicks.

Samsung is going to have to earn future sales and do so by having great products. I'm happy with the direction they're going, even if the mobile heydays are behind them.

 

[Mopetar]

I think it's more of a sign that other Android players are eating away at Samsung than anything else. Apple has always had a disproportionately large share of the U.S. market compared to the rest of the world.

While Apple has certainly picked up additional sales now that it sells a larger phone, I don't expect it to move their overall sales much beyond where they would have otherwise been.

Samsung has more to worry about from HTC, LG, and the other handset makers who have gotten their act together and are making some rather compelling products now.

 

[Dari]

I'm fine with how Samsung is responding.

- Release the best Android phablet hands down in practically every respect, possibly the best phone in the market today.
- Seriously redesign the S6 - all signs point to this
- Improve the build of your entire line in the A series
- Simplify TW and significantly improve performance in 5.0 (see Note 3 5.0 build testing)
- Use internal advantages to create separation such as the new Exynos SOC which looks substantially faster than the S810 and superior AMOLED screens
- Innovate in interesting, even if niche areas, like the Gear VR. No gimmicks.

Samsung is going to have to earn future sales and do so by having great products. I'm happy with the direction they're going, even if the mobile heydays are behind them.

Almost everything you wrote is speculation and opinion. THe only thing I see them do is release Tizen phones and release a Note 4 that just does what Samsung has always done well: upped the specs and bloat.

 

[dawheat]

Almost everything you wrote is speculation and opinion. THe only thing I see them do is release Tizen phones and release a Note 4 that just does what Samsung has always done well: upped the specs and bloat.

- I think the community of opinion on the Note 4 is clear, among users and reviewers.
- The metallic A-series are available now.
- Folks on xda have been reporting on 5.0 builds and their improvements

http://www.xda-developers.com/analysis-of-the-galaxy-note-3-android-5-0-leak/

- Geekbench results of the Exynos SOC have popped up and the Note 4 screen is obviously here to experience
- Gear VR is buyable and has gotten positive segment feedback

Outside the S6 which obviously no one knows, everything I included is pretty defensible and not just personal opinion. Your statement on the Note 4 sounds far more personal IMO since of all things TW has actually been lightened in the Note 4 and there are fewer Samsung apps installed. And more than specs, actual usage is better in real life, eg low light photos. It's actually refreshing to have things just work instead of being a meaningless spec on a Samsung device

 

[poofyhairguy]

Almost everything you wrote is speculation and opinion.

It is not an opinion. The Note 4 is the best phablet on the planet right now. It is the clearest best phone we have had (like is heads and shoulders above the competitors) since like 2010.

 

[dawheat]

It is not an opinion. The Note 4 is the best phablet on the planet right now. It is the clearest best phone we have had (like is heads and shoulders above the competitors) since like 2010.

Heh considering the OP, I'm not sure if he really wants an open debate or just wants the chance to slag on Samsung.

I'm of the strong opinion that two years of missteps and gimmicks after the S3 threw away all their momentum and chance to build Apple-like brand loyalty. I still remember the excitement people had before the S4 unveiling and the incredible disappointment afterwards.

I do like how Samsung is responding now. Outside of inventing/finding some new market, they're doing the things they need to. The Note 4 was the right step for one of their flagship lines and everything points to Samsung continuing this trend with the S6.

 

[Dari]

- I think the community of opinion on the Note 4 is clear, among users and reviewers.
- The metallic A-series are available now.
- Folks on xda have been reporting on 5.0 builds and their improvements

http://www.xda-developers.com/analysis-of-the-galaxy-note-3-android-5-0-leak/

- Geekbench results of the Exynos SOC have popped up and the Note 4 screen is obviously here to experience
- Gear VR is buyable and has gotten positive segment feedback

Outside the S6 which obviously no one knows, everything I included is pretty defensible and not just personal opinion. Your statement on the Note 4 sounds far more personal IMO since of all things TW has actually been lightened in the Note 4 and there are fewer Samsung apps installed. And more than specs, actual usage is better in real life, eg low light photos. It's actually refreshing to have things just work instead of being a meaningless spec on a Samsung device

It is not an opinion. The Note 4 is the best phablet on the planet right now. It is the clearest best phone we have had (like is heads and shoulders above the competitors) since like 2010.

I'll take officially release products in the hand of end users over leaks, rumors, and theories. Compared to the Note 3, the Note 4 has more Samsung crap than ever before. What the next iteration of TouchWiz has or does not have means nothing.

 

[VashHT]

I'll take officially release products in the hand of end users over leaks, rumors, and theories. Compared to the Note 3, the Note 4 has more Samsung crap than ever before. What the next iteration of TouchWiz has or does not have means nothing.

Meh, I'm liking the Note 4 way more than the iPhone 6, and honestly considering Apple's stock apps suck for the most part imo I wish I could get rid of them or at least change the default app. At least on the note 4 I can easily disable stuff I don't use and can change my default apps to what I want.

Also as someone who really hated touchwiz I think it's gotten a lot better on the note 4. Granted the last samsung phone I used was the S3 but it seems a lot better to me now.

 

[poofyhairguy]

Also as someone who really hated touchwiz I think it's gotten a lot better on the note 4.

A LOT better. In fact the Note 4 Touchwiz is basically a midway point between Lollipop and Kitkat, its nice.

Heck I couldn't STAND Touchwiz on my S4, but with the Note 4 it is so mild I don't see how anyone minds. The only issue is some of the animations are slow (iOS 7 style) but you can speed those up.

 

[Commodus]

To me, this is the bigger story: Apple apparently becoming the top-selling smartphone maker in China.

http://canalys.com/newsroom/media-alert-apple-takes-top-spot-china-first-time-smart-phones

Yep, you read that right: in the land where many (if not most) smartphones cost under $200, the iPhone reportedly outsold Xiaomi, Samsung and Huawei. I mentioned in another thread that Apple is treated as an aspirational brand in some parts of the world, and this would certainly bear it out. It'd suggest that Apple is trashing Samsung on a global stage, too, especially since the GS5 is now an old device.

 

[Dari]

To me, this is the bigger story: Apple apparently becoming the top-selling smartphone maker in China.

http://canalys.com/newsroom/media-alert-apple-takes-top-spot-china-first-time-smart-phones

Yep, you read that right: in the land where many (if not most) smartphones cost under $200, the iPhone reportedly outsold Xiaomi, Samsung and Huawei. I mentioned in another thread that Apple is treated as an aspirational brand in some parts of the world, and this would certainly bear it out. It'd suggest that Apple is trashing Samsung on a global stage, too, especially since the GS5 is now an old device.

Amazing. They already own 34% of the Japanese smartphone market. If they become #1 in China as well then I wonder what'll be their next objective and how will they reach it.

 

[dawheat]

A LOT better. In fact the Note 4 Touchwiz is basically a midway point between Lollipop and Kitkat, its nice.

Heck I couldn't STAND Touchwiz on my S4, but with the Note 4 it is so mild I don't see how anyone minds. The only issue is some of the animations are slow (iOS 7 style) but you can speed those up.

This is why the OP doesn't make any sense. TW is lighter in the Note 4 and there are fewer Samsung apps . The 5.0 improvements are around performance, not bloat.

Everything in my list except the S6 are real products in the hands of users.

But hey, I'm sure the OP feels Sony is somehow going to demolish everyone. Because Japan...and sailor girls...and Dragon Ball Z.

 

[WelshBloke]

OP is going to give himself an ulcer worrying about Samsung one of these days.

 

[TreVader]

OP is going to give himself an ulcer worrying about Samsung one of these days.

LOL



It's not looking good for samsung. Apple is killing it though, I'm very surprised to hear they are #1 in china.



It's times these I start to worry that Apple is overreaching....

 

[Dari]

This is why the OP doesn't make any sense. TW is lighter in the Note 4 and there are fewer Samsung apps . The 5.0 improvements are around performance, not bloat.

Everything in my list except the S6 are real products in the hands of users.

But hey, I'm sure the OP feels Sony is somehow going to demolish everyone. Because Japan...and sailor girls...and Dragon Ball Z.

No mention of SONY here. But I'd buy them over Samsung any day. The fact that Apple is doing so well is a testament that quality can triumph over garbage and over-specced devices.

 

[Dari]

LOL



It's not looking good for samsung. Apple is killing it though, I'm very surprised to hear they are #1 in china.



It's times these I start to worry that Apple is overreaching....

They aren't overreaching. They're an aspirational brand. As Chinese people get richer they will want Apple products. In the near future Apple only has one major headache. In order to alleviate the Chinese government's concern about the US Government spying they gave them their entire iOS source code. I wouldn't be surprised if Chinese OEMs start reverse-engineering them.

 

[poofyhairguy]

To me, this is the bigger story: Apple apparently becoming the top-selling smartphone maker in China.

http://canalys.com/newsroom/media-alert-apple-takes-top-spot-china-first-time-smart-phones

Yep, you read that right: in the land where many (if not most) smartphones cost under $200, the iPhone reportedly outsold Xiaomi, Samsung and Huawei. I mentioned in another thread that Apple is treated as an aspirational brand in some parts of the world, and this would certainly bear it out. It'd suggest that Apple is trashing Samsung on a global stage, too, especially since the GS5 is now an old device.

Not surprising at all. They are the only maker for iOS phones while the Android market keeps fragmenting. They can be the biggest and still be a fraction of Android's total volume.

 

[WelshBloke]

No mention of SONY here. But I'd buy them over Samsung any day. The fact that Apple is doing so well is a testament that quality can triumph over garbage and over-specced devices.

The fact that Samsung is doing so well over Sony is also testament that quality can triumph over garbage as well? Or is your logic not consistent?

 

[blankslate]

I'm pretty sure the iphone 6 and 6 plus next revision will fix this issue

http://oneofthenine.com/

however the options I look for are a replaceable battery and a microSDcard capability

I hear the Galaxy s6 won't have either of those so I might upgrade to an s5 or note 4 when it's time (or maybe another manufacturer's model with those features). flagship phone hardware is at the level where my only concern for android phones aside from the above conditions and support for future OS updates.


....

 

[Dari]

The fact that Samsung is doing so well over Sony is also testament that quality can triumph over garbage as well? Or is your logic not consistent?

No it isn't, but you already knew that. Not in the least. Samsung has better economies of scale, logistics, and marketing budget than SONY. What they do not have are better designers and product developers. They've exploited their advantages but, from an economist's perspective, have expanded too far and too fast. Now costs are catching up with them. Whereas virtually every other OEM has an ODM they can call upon to increase or decrease orders, Samsung relies on itself. That can be great when orders are up but devastating when they're down.

Again, Apple makes only a few products and they do a very good job. They also market them well and keep costs in line. Samsung is the polar opposite.

 

[WelshBloke]

... Or is your logic not consistent?

No it isn't, but you already knew that.

Yes.

Yes I did.

 

[Dari]

Yes.

Yes I did.

Cute. I didn't even read your last sentence. Apple and Samsung are doing well for different reasons. Both reasons are clearly laid out in my previous post. As for SONY,they're proof that you can have a great product and market it poorly. But you already knew that since we had this (or similar discussion) last week or two weeks ago.

EDIT: Can't say Samsung is doing as well anymore. They're not hurting like SONY but they've clearly got a a problem where less people are buying their garbage. A 50% fall in smartphone sales in the world's largest market means heads should roll, not merely ceremonial pay cuts. As I mentioned in my previous post, you simply cannot stop ordering from your own factories. You have to fire people and mothball entire lines. Their vertical integration is going to haunt them.

 

[WelshBloke]

Cute. I didn't even read your last sentence.

Well if your attention span only lasts one sentence that explains a lot. :awe: