Apple’s U.S. iPhone sales grow to highest level in nearly two years as Samsung falters

“Research firm Kantar says that [sales of] iOS phones rose to a level that equated to a 40.5-percent market share in the three months ending in October,” Ed Oswald reports for Digital Trends. “This was its highest share of the market since the quarter ending January 2015, and up nearly seven points year over year. The iPhone 7 was the top-selling phone, commanding a 10.6-percent share.”

“Another key finding was that Android appears to be struggling in the U.S., seeing a 5.6-percent market share drop,” Oswald reports. “The platform in general has seen a market share slip every year since 2012. One potential reason for the decline could be the end of phone subsidies. Traditionally, Android phones were more heavily subsidized than their iPhone counterparts, putting Apple’s devices at a premium.”

“Another reason could be Apple’s change in strategy generally over the same period to expand its line, either by merely continuing to manufacture older models or by introducing budget versions like the 5C and iPhone SE at cheaper prices,” Oswald reports. “Either way, it’s good news for Apple. Even more good news is that Kantar believes the loss of the traditional headphone jack is all but a non-issue for consumers as it hasn’t had a huge effect on sales overall.”

Read more in the full article here.

MacDailyNews Take: There’s only one aspirational smartphone. The wannabes are what people settle for when they aren’t thinking, don’t know any better, or mistakenly think sticker price equals the total cost of ownership.

SEE ALSO:
KGI expects Apple to see all-time record iPhone demand in 2017; wireless charging on all next-gen iPhone models – November 29, 2016
Apple’s iPhone, MacBook top Christmas gift wish list – November 29, 2016
Apple reaps 106% of smartphone industry profits – November 21, 2016

13 Comments

  1. Where are all the whiners who hated Apple for doing away w their beloved earphone jacks???

    Yes, all you who bitched, moaned, kvetched and predicted doom & gloom for Apple?

    Have you figured out you were wrong, yet, geniuses?

    How about coming clean and admitting it? Didn’t think so…

      1. Why didn’t those people who had their Samsung phone recalled buy a different Android handset instead? I have heard that there quite a few other Androids on the market and there are plenty of people who insist that some of them are every bit the equal of iPhones.

        I think that the impact on Apple of Samsung’s debacle is being greatly overestimated. Anybody who needed to buy a replacement for a Samsung would be much more likely to buy a different Android. The only benefit for Apple would be the relatively small proportion of Samsung users who had become disillusioned with the hassles arising from Android and who had decided to go for the real thing instead. Those people would have switched to Apple in the near future anyway.

        If Barry’s theory is correct, Samsung can look forward to a complete sales recovery within a few months, but I believe that Samsung’s recalls with their phones and household appliances will increase awareness that Samsung builds down to a price, rather than up to a quality and tries to evade responsibility for serious problems created ( i.e. refusing to pay for fire damage caused by exploding phones or igniting washing machines ).

        I don’t see Samsung recovering quickly from those issues because sales will inevitably be reduced and at the same time, profit margins will be eroded by the increased advertising promotional expenses that will be necessary to support sales.

    1. Yes, you are absolutely correct. Apple will cease to operate because of the small number of MacPro machines it sells each year vs. the quarter of billion iPhone that customers buy annually.
      I understand the frustration about lack of new Mac models across the full product portfolio. However, a drop in sales for a very small part of the business will not affect Apple’s future as much as Apple’s continuing success in the mobile market.
      The biggest long-term concern is the large share of revenue relying on iPhones since that dominance can end quickly. It may be that services continues to grow but that itself is largely reliant on iPhone usage.

    1. Forget market share, Apple’s iPhone is still making the most money by far

      Even though Android’s share of the smartphone market recently reached 88% — setting a new record in the process — Apple doesn’t seem to mind too much given that the company still commands the lion’s share of the profits across the entire industry. Per a recent research note from BMO Capital Markets analyst Tim Long, Apple’s profit-share now checks in at an astounding 103.6%.

      IOW: A lot of that 88% Android market share is due to companies BUYING market share by not just giving away their phones. They’re taking a LOSS on their phones. That doesn’t last very long. No profits, no company. Bye-bye!

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