It had 13.6% of the world market in the first half of this year, down from 14.8% for 2014, although its share typically rises with full-year results due to strong sales in December. With the exception of fiscal 2015, Apple has not increased its market share. Nevertheless, a trio of Chinese smartphone makers - Xiaomi, Oppo and Vivo - accounted for roughly a quarter of the global market in the first half of 2018, according to data from research firm IDC, up from just 8.9% for all of 2014 and almost 20% last year. The company also has customer satisfaction and loyalty rates that are unparalleled in the mobile phone industry, said Ben Bajarin, an analyst with Creative Strategies. Apple has for more than a decade insisted that its gadgets should not be judged on their specs alone, an argument that sales data suggests Apple made successfully.
The company's executives have warned investors in the past against fixating on sparse data points from its large supply chain. "The phone landscape is rapidly changing and I think manufacturers are missing a trick by going the $1,000 route."Īpple declined to comment on its strategy, or the share moves among its suppliers. "You can get a lot of phone for a lot less," he said. Hal Eddins, chief economist for Apple shareholder Capital Investment Counsel, said phones like the OnePlus 6T are roughly comparable to Apple's high-end phones for almost half the price. Without volume growth in promising overseas markets such as India, Brazil and Russia, the worry among analysts and investors is that Apple has at least parts of its strategy wrong with too much emphasis on its premium brand and the high prices that go with it, more than $1,000 for its top models. That, in turn, could hurt the growth of Apple's services revenue, said Bernstein's Toni Sacconaghi. Wall Street analysts have expressed concerns that slower overall smartphone sales will make it harder for Apple to hold smartphone market share as people put off buying its generally more expensive phones. That, at least in part, requires a growing base of device owners driven by its iPhone, which analysts believe accounts for about two-thirds of the 1.3 billion Apple devices in use around the world. But it now faces fierce competition from mid-priced phones from makers such as Xiaomi Corp.Īpple has often stated its plan to increase its revenue from paid services, such as Apple Music and iCloud. For the past year, investors had largely been willing to overlook stagnating unit sales of the iPhone because average selling prices kept rising.
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