Tuesday, August 13, 2019

Apple loses more ground in smartphone market place




SAN FRANCISCO: Apple lost more ground in the smartphone market that declined last quarter, with a sales tracker who said the tech giant was kicked off the list of the top three sellers by a Chinese rival.

Apple dropped to fourth in global smartphone sales, sending 35.3 million iPhones in the second quarter compared to 36.2 million units sent by Oppo, according to an IHS Markit report this week.

South Korean consumer electronics titan Samsung held first with 23 percent of the market, after having sent 75.1 million smartphones, China's Huawei sent 58.7 million smartphones to claim 18 percent of the market, IHS Markit calculated.

"Apple continues to face challenges in terms of unit shipments, a trend that is unlikely to be solved soon," IHS smartphone research and analysis director Jusy Hong said in an online publication.

While Apple, based in California, has been aggressively promoting iPhones, today's generation smartphones have "super premium" prices, while a few-year-old models are still expensive compared to Android devices, he said The analyst

Other smart phone market trackers, such as Counterpoint Research and International Data Corporation, concluded that while iPhone shipments sank in the second quarter, Apple remained third in terms of global shipments.

Meanwhile, Huawei experienced an increase in smartphone shipments despite general market contracting and commercial tensions between the United States and China, market trackers reported.

The rise of Chinese rivals

Huawei, considered the world leader in super-fast fifth-generation equipment, or 5G, and the world's second largest smartphone producer, has been blacklisted by U.S. President Donald Trump amid suspicions that It provides a backdoor for Chinese intelligence services. The company denies those charges.

"The effect of the ban did not translate into the drop in shipments during this quarter, which will not be the case in the future," Counterpoint associate research director Tarun Pathak said in the company's market report. .

"In the coming quarters, Huawei is likely to be aggressive in its local market and record some growth there, but it will not be enough to compensate for the decrease in its overseas shipments."

The combined global smartphone market share of Chinese firms Huawei, Oppo, Vivo, Xiaomi and Realme reached a new high of 42 percent in the second quarter, according to Counterpoint.

"These brands have expanded aggressively outside of China and have achieved growth that compensates for saturation in their local market," Counterpoint research analyst Varun Mishra said.

"Their strategies and product portfolios are more aligned with local needs and preferences, which is one of their key strengths."

Apple has struggled to stop relying on iPhone sales with a focus on services, digital content and related devices.

In the quarter that has just ended, Apple for the first time earned less than half of its revenue from the iPhone, the company's profit and cash engine for a long time.

Apple managed to increase its overall revenue, although by a modest one percent, to $ 53.8 billion, even when iPhone revenues fell almost 12 percent in the period from April to June.

The company generated strong growth from digital content and services, including Apply Pay and Apple Music, along with portable accessories and accessories such as Apple Watch and Air Pods.

Apple has stopped reporting on iPhone unit sales, but chief executive Tim Cook said during a earnings call that there was a "strong customer response" to iPhone promotions and financing programs.

Apple saw its sales improve in China's crucial market, which included a double-digit increase in service revenue driven by strong growth in the App Store there, according to the company.

The sale of iPhones in that country was driven by factors that included price movements by Apple and exchange and financing programs, Cook said.
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