Smartphone Market Share - Q2 18 - Huawei takes over #2 spot
IDC released it's 2018 Q2 Worldwide Quarterly Mobile Phone Tracker report yesterday and there is one interesting change to note.
First WW sales in Q2 of 2018 were down 1.8% to 342M units in Q2 with the biggest drop being outside the top 5 in the "others" category where sales fell 18.5%.
Samsung is still #1 WW but saw year over year unit sales fall 10.4% to 71.5M units and a 20.9% market share. Sales of the new Galaxy 9/9+ are not as brisk as expected.
But the big news is that Huawei surpassed Apple as the #2 WW OEM with a whopping 40.9% year over year sales increase to 54.2M units and a 15.8% market share. Even with the rejection by US Telco's - that's a remarkable feat and shows that the growth potential outside the US is still huge.
Apple sales were nearly flat @ 41.3M units a 0.7% increase over 2017 and carry a 12.1% share.
The other Chinese OEMs did well also - #4 Xiaomi saw a 48.8% sales volume increase to 31.9M units and at that pace may push Apple to #4 by the end of the year. #5 Oppo's growth was smaller @ 5.1% but still sold some 29.4M units.
As I've stated in earlier posts on this subject - it is very possible that all 3 of the Chinese OEMs could pass Apple in unit sales and market share in the coming years.
Apple has ignored the "sweet spot" in the smartphone market at the $250 - $300 price point where a lot of the world shops. And so while Apple makes huge profits on their high end phones - they're missing an important part of the market and it will impact some their "market leadership" perception - especially overseas.
As Apple reported their Q3 18 results - iPhone revenue actually grew some 20% on effectively flat unit sales. How you might ask ? - higher prices. But this approach will become challenging - how much more can Apple charge for a phone and expect folks to buy them ? And will the higher price offset any potential volume drops.
iPhone revenue is nearly $30B of the $53.2B for all of Apple or 57.2%. Revenue for other devices like iPads actually fell by 5% and Mac units sales fell by 13%.
Where Apple did see substantial growth is what they call Services (31% increase y/y) - so iTunes, etc and the "Other" category (37%) that covers watches, ear buds, beats, etc.
Both of those last two areas combined for $13.3B or about 25% of total revenue. But it would take a remarkable change for these two areas to over take the iPhone's importance to the company.
I can't say 100% that Apple is overly concerned about it's market share ranking as marker for success - but if they continue to drop down the ranking then the potential impact is the perception of them being a market "leader".
First WW sales in Q2 of 2018 were down 1.8% to 342M units in Q2 with the biggest drop being outside the top 5 in the "others" category where sales fell 18.5%.
Samsung is still #1 WW but saw year over year unit sales fall 10.4% to 71.5M units and a 20.9% market share. Sales of the new Galaxy 9/9+ are not as brisk as expected.
But the big news is that Huawei surpassed Apple as the #2 WW OEM with a whopping 40.9% year over year sales increase to 54.2M units and a 15.8% market share. Even with the rejection by US Telco's - that's a remarkable feat and shows that the growth potential outside the US is still huge.
Apple sales were nearly flat @ 41.3M units a 0.7% increase over 2017 and carry a 12.1% share.
The other Chinese OEMs did well also - #4 Xiaomi saw a 48.8% sales volume increase to 31.9M units and at that pace may push Apple to #4 by the end of the year. #5 Oppo's growth was smaller @ 5.1% but still sold some 29.4M units.
As I've stated in earlier posts on this subject - it is very possible that all 3 of the Chinese OEMs could pass Apple in unit sales and market share in the coming years.
Apple has ignored the "sweet spot" in the smartphone market at the $250 - $300 price point where a lot of the world shops. And so while Apple makes huge profits on their high end phones - they're missing an important part of the market and it will impact some their "market leadership" perception - especially overseas.
As Apple reported their Q3 18 results - iPhone revenue actually grew some 20% on effectively flat unit sales. How you might ask ? - higher prices. But this approach will become challenging - how much more can Apple charge for a phone and expect folks to buy them ? And will the higher price offset any potential volume drops.
iPhone revenue is nearly $30B of the $53.2B for all of Apple or 57.2%. Revenue for other devices like iPads actually fell by 5% and Mac units sales fell by 13%.
Where Apple did see substantial growth is what they call Services (31% increase y/y) - so iTunes, etc and the "Other" category (37%) that covers watches, ear buds, beats, etc.
Both of those last two areas combined for $13.3B or about 25% of total revenue. But it would take a remarkable change for these two areas to over take the iPhone's importance to the company.
I can't say 100% that Apple is overly concerned about it's market share ranking as marker for success - but if they continue to drop down the ranking then the potential impact is the perception of them being a market "leader".
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