Samsung doubles market share while Apple declines & analysts worry about cheap iPhone

Everything GoesEverything Goes Posts: 12,972
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Samsung has doubled the amount of devices it has sold year on year from selling 71.3 million devices compared to 45.6 million a year ago.

Apple sold 31.9 million iPhones during the quarter, two million less than the same time last year, which translated into market share of 14.2 per cent: down from 33.1 million iPhones sold and 18.8 per cent market share a year ago.

Gartner said Apple saw a "significant decline" in Average Selling Prices's which fell to the lowest level since the launch of the iPhone in 2007, due to hefty sales of the iPhone 4 which were flogged at "strongly discounted prices".

"While Apple's Average Selling Prices's demonstrates the need for a new flagship model, it is risky for Apple to introduce a new lower-priced model too," he said.

The danger of cannibalisation would be greater than was witnessed in the last quarter when the iPhone 4 swiped biz away from later generations.

Apple could probably afford to give iPhones away for free and not worry about going bust :eek:

http://www.channelregister.co.uk/2013/08/14/peak_apple_samsung_has_double_market_share_of_iphone/
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Comments

  • Zack06Zack06 Posts: 28,304
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    Apple have large cash reserves which I believe are to prevent another "bankruptcy" situation like the one they had in 1997.

    I think everything goes in cycles, and that period where they were driven to near destruction was a period when Steve Jobs was not at Apple. It was only after he returned with a Microsoft bail-out that the company recovered.

    I'm not convinced that Apple know what to do now that Jobs has gone. I think he made the company what it is, and that has now been lost. This low cost iPhone will only cannibalise sales and damage Apple's reputation as a premium brand. Apple have allowed Android to become too strong in the market, and I don't think a cheaper iPhone model can do anything about that. If anything, Microsoft is the only one who can challenge Android now. I think Apple have sailed into troubled waters.
  • swordmanswordman Posts: 6,679
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    Oh my god please delete this I can see the wolves circling now ... they have been doing this exact same thing for 20 years there is no risk is making a "lower priced model" iphone at all, what do market analysts know.

    And for gods sake don't mention "cheap" iphone

    i'm outta here :eek:
  • [Deleted User][Deleted User] Posts: 13,367
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    Did you even read the article? Samsung has not doubled its market share at all. It has double Apple's market share. Samsung's market share increased by 2%.

    Is there any breakdown of the sales figures for Samsung? It'd be interesting to see how those 71.3m sales are distributed across their range of phones.
  • [Deleted User][Deleted User] Posts: 185
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    Zack06 wrote: »
    Apple have large cash reserves which I believe are to prevent another "bankruptcy" situation like the one they had in 1997.

    I think everything goes in cycles, and that period where they were driven to near destruction was a period when Steve Jobs was not at Apple. It was only after he returned with a Microsoft bail-out that the company recovered.

    I'm not convinced that Apple know what to do now that Jobs has gone. I think he made the company what it is, and that has now been lost. This low cost iPhone will only cannibalise sales and damage Apple's reputation as a premium brand. Apple have allowed Android to become too strong in the market, and I don't think a cheaper iPhone model can do anything about that. If anything, Microsoft is the only one who can challenge Android now. I think Apple have sailed into troubled waters.

    i can see your point. windows phone is the only os to compete with android.

    ontopic:

    apple made a big mistake having ios closed source and very limited. samsung put it s money into android and as it turns out open system and customization won.
  • [Deleted User][Deleted User] Posts: 13,367
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    adi_carnat wrote: »
    i can see your point. windows phone is the only os to compete with android.

    ontopic:

    apple made a big mistake having ios closed source and very limited. samsung put it s money into android and as it turns out open system and customization won.

    I would think Google are quite concerned about Samsung's utter dominance of Android though.
  • alan1302alan1302 Posts: 6,336
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    Samsung has doubled the amount of devices it has sold year on year from selling 71.3 million devices compared to 45.6 million a year ago.]

    45.6 million doubled gets 71.3 million - bag to maths for you! :D
  • Zack06Zack06 Posts: 28,304
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    I would think Google are quite concerned about Samsung's utter dominance of Android though.

    I would agree with you actually. It's not healthy for Android to have Samsung with so much power in the ecosystem. HTC and LG are pretty much nothing compared to Samsung, and I think that scares Google a little.

    They seem to have drifted away from Samsung quite a lot. The new rumours are that they've taken away the Nexus 10 and given it to Asus to do this time. I think Google put up with it because Samsung was a driving force in the rise of Android, but then so was Motorola, which is now under Google's complete control. They didn't buy Moto solely for patents, it's clear that it was a very strategic decision by Google. I wouldn't be surprised if we saw Motorola being used as a pawn to try and curb Samsung.

    Google doesn't seem concerned about Apple any more, I think it's safe to say that it has gone well past the stage where the iPhone could pose any real threat to their market dominance.
  • alan1302alan1302 Posts: 6,336
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    This does show how poor the sales of other makes are compared to Samsung and Apple...LG were not really close but are in 3rd position.
  • alan1302alan1302 Posts: 6,336
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    adi_carnat wrote: »
    apple made a big mistake having ios closed source and very limited. samsung put it s money into android and as it turns out open system and customization won.

    Apple has made it's fortune since the Mac with a closed OS so it's not always a bad thing.

    Also are Apple after total market domination? They are at the higher end of the market so don't think they would ever have the highest market share. It would be like Jaguar expecting to sell more cars than Ford.
  • swordmanswordman Posts: 6,679
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    problem is it is not a good analogy is it, prestige is fine but when it becomes obvious that it is false prestige and that you get nothing extra for you money people question it and move away.
  • Everything GoesEverything Goes Posts: 12,972
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    alan1302 wrote: »
    45.6 million doubled gets 71.3 million - bag to maths for you! :D

    Copied from original article. Almost doubles would be a better description. And bag (bad) grammar to you :p
  • [Deleted User][Deleted User] Posts: 185
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    alan1302 wrote: »
    Apple has made it's fortune since the Mac with a closed OS so it's not always a bad thing.

    Also are Apple after total market domination? They are at the higher end of the market so don't think they would ever have the highest market share. It would be like Jaguar expecting to sell more cars than Ford.

    yea , but jaguar is expected to make cars that have at least the features of ford.

    not saying that iphone should sell as much as smsung , but I am saying that because of the limitations of ios sales have gone down and android has gone up , just because android is an open minded system and has far less limitations than ios.

    not being able to modify the so or the features on YOUR device is kinda communism and unfortunately apple has this stupid idea that the customer who buys a ios device has nothing to say or do when it comes to customization and freedom of applications.

    on android you can even change parts of the os that are basic (like the keypad) with 3rd party apps , you have widgets and endless possibilities to customize... you can also use the 10 year old bluetooth system to transfer files to any device...

    and the fact that ios sales are down makes perfect sense and it s reflected in apple copying a lot in ios7 from android and wp.
  • calico_piecalico_pie Posts: 10,060
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    Number of smartphones listed on Samsung website - 44.

    Number of smartphones listed on Apple website - 3.

    And according to every other report, sales for the last quarter were up 20% compared to the same quarter last year.
  • calico_piecalico_pie Posts: 10,060
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    adi_carnat wrote: »
    not being able to modify the so or the features on YOUR device is kinda communism

    I've read some funny things on the internet in my time, but that's right up there! :D
  • calico_piecalico_pie Posts: 10,060
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    Did you even read the article? Samsung has not doubled its market share at all. It has double Apple's market share. Samsung's market share increased by 2%.

    Is there any breakdown of the sales figures for Samsung? It'd be interesting to see how those 71.3m sales are distributed across their range of phones.

    I don't know about sales figures, but there was a story recently about how Samsung had for the first time generated more profit than Apple.

    Trouble was, to arrive at that figure, the author did the following:

    1. Included figures for Samsung phones, tablets and computers.

    2. Only included the iPhone, and even then crudely based it on 50% of Apple's profits, ignoring the fact that the iPhone has a larger profit margin than anything else they do.

    For the record - not a pissing contest, just another example of misreporting when it comes to Apple.
  • alan1302alan1302 Posts: 6,336
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    adi_carnat wrote: »
    yea , but jaguar is expected to make cars that have at least the features of ford.

    not saying that iphone should sell as much as smsung , but I am saying that because of the limitations of ios sales have gone down and android has gone up , just because android is an open minded system and has far less limitations than ios.

    not being able to modify the so or the features on YOUR device is kinda communism and unfortunately apple has this stupid idea that the customer who buys a ios device has nothing to say or do when it comes to customization and freedom of applications.

    on android you can even change parts of the os that are basic (like the keypad) with 3rd party apps , you have widgets and endless possibilities to customize... you can also use the 10 year old bluetooth system to transfer files to any device...

    and the fact that ios sales are down makes perfect sense and it s reflected in apple copying a lot in ios7 from android and wp.

    You don't think Android sales are up because they make cheaper handsets?
  • [Deleted User][Deleted User] Posts: 185
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    alan1302 wrote: »
    You don't think Android sales are up because they make cheaper handsets?

    for sure that is a factor , BUT android sales are up and ios DOWN because ios is primitive compared to android.

    and it s not like apple gonna change their principles are they?
    infact , in 3 4 years time , they will find out that these close principles will end up bad for them.

    a while back people were buying iphones and itabs just because there were apple products... now people actually realized why is it logical to buy a droid.

    apple did it to themselves by being very arrogant and denying anything non apple. I mean , they are so closed minded they won t even let u use your bluetooth for sharing with a non ios device. that is pathetic and stupid because you cannot force the whole world to buy your products just for the sake of sharing. People were lile... OK , you limit my freedoms , I go to samsung... it s that simple.

    Real story:

    -Have a friend with an iPad... cannot do anything with it. Cannot even connect his ipad to his computer to copy music. everything is itunes and COSTS money. it just does not make any sense to have a device with ios. it s just to restrictive.

    don t get me wrong , I like the iphone 5 for example as a piece of physical engineering ... only if it would come with some proper os like android.
  • calico_piecalico_pie Posts: 10,060
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    All of the above is one theory.

    Another is that Samsung make 44 smartphones compared to Apple's three, and they cover a much larger range of designs and price points.
  • kidspudkidspud Posts: 18,341
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    adi_carnat wrote: »
    Real story:

    -Have a friend with an iPad... cannot do anything with it. Cannot even connect his ipad to his computer to copy music. everything is itunes and COSTS money. it just does not make any sense to have a device with ios. it s just to restrictive.
    .

    It might be a real story, but only because your friend does not know how to use the device. I copy music to my iPad all the time and have never used iTunes.

    Maybe that is why you have your views. You don't actually know what it can and cannot do.
  • ACUACU Posts: 9,104
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    calico_pie wrote: »
    All of the above is one theory.

    Another is that Samsung make 44 smartphones compared to Apple's three, and they cover a much larger range of designs and price points.

    The number of models made has nothing to do with it. Nothing was stopping apple from making more models. They chose not to. Samsung choose to cater to a larger market, thus were bound to make more sales. Its no surprise that Samsungs sales and thus android were going to overtake apple and thus iOS at some point.
  • calico_piecalico_pie Posts: 10,060
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    ACU wrote: »
    The number of models made has nothing to do with it. Nothing was stopping apple from making more models. They chose not to. Samsung choose to cater to a larger market, thus were bound to make more sales. Its no surprise that Samsungs sales and thus android were going to overtake apple and thus iOS at some point.

    Of course the number of models has something to do with it.

    You even contradict yourself within a single post.
  • calico_piecalico_pie Posts: 10,060
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    adi_carnat wrote: »
    Real story:

    -Have a friend with an iPad... cannot do anything with it. Cannot even connect his ipad to his computer to copy music. everything is itunes and COSTS money. it just does not make any sense to have a device with ios. it s just to restrictive.

    That's a great story.

    If we ignore the fact that of course you can copy music from a computer to an iPad.

    I mean honestly, is there no limit to the nonsense people seem to believe about Apple?

    Did you at no point think to yourself "That can't be right. Its 2013 for goodness sake. Surely you can copy music from a computer to an iPad!"
  • alan1302alan1302 Posts: 6,336
    Forum Member
    adi_carnat wrote: »
    Real story:

    -Have a friend with an iPad... cannot do anything with it. Cannot even connect his ipad to his computer to copy music. everything is itunes and COSTS money. it just does not make any sense to have a device with ios. it s just to restrictive.

    don t get me wrong , I like the iphone 5 for example as a piece of physical engineering ... only if it would come with some proper os like android.

    So let me get this right…your ‘friend’ has an iPad that they can’t do anything with. They can’t connect it to his computer. Are you sure this is not you? 

    Also there are 1,000s of free apps available for the iPad so obviously you and your ‘friend’ no nothing about it.

    A proper OS like Android…yes, because iOS and Windows Phone 8 are not ‘proper’ they are just figments of my imagination and I can’t do anything with them because I am like your ‘friend’. Millions and millions of people with iPhones and iPads who can’t do anything with them. People sepnd the money but then can’t do anything with them. And have to pay out money for stuff that is actually free.
  • paulbrockpaulbrock Posts: 16,632
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    Zack06 wrote: »
    This low cost iPhone will only cannibalise sales and damage Apple's reputation as a premium brand.

    I do wonder how big this market of people that want an iphone but can't afford one actually is.
  • calico_piecalico_pie Posts: 10,060
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    Zack06 wrote: »
    Apple have large cash reserves which I believe are to prevent another "bankruptcy" situation like the one they had in 1997.

    I think everything goes in cycles, and that period where they were driven to near destruction was a period when Steve Jobs was not at Apple. It was only after he returned with a Microsoft bail-out that the company recovered.

    I'm not convinced that Apple know what to do now that Jobs has gone. I think he made the company what it is, and that has now been lost. This low cost iPhone will only cannibalise sales and damage Apple's reputation as a premium brand. Apple have allowed Android to become too strong in the market, and I don't think a cheaper iPhone model can do anything about that. If anything, Microsoft is the only one who can challenge Android now. I think Apple have sailed into troubled waters.

    In the same way that lower cost desktops, laptops and iPods damaged the brand?

    Or is there something different about a lower cost phone?
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