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This may be a sign of how iPhone demand is faring amongst the competition

The latest iPhone may not be the rockstar Apple thought it would be. The Cupertino, California-based company slashed its orders for iPhone 5 screens by about 50 percent for the first quarter of 2013, and cut orders for other iPhone components as well.

This may be a sign of how iPhone demand is faring amongst the competition. Rival hardware makers like Samsung, whose devices are coupled with Google's Android operating system, have stolen much of the smartphone market share in the U.S.

For Q3 2012, Android was the No. 1 mobile operating system with a market share of 72.4 percent (compared to 52.5 percent in Q3 2011). Apple's iOS followed far behind at 13.9 percent (compared to 15 percent in Q3 2011).

As far as hardware goes, Samsung led the Q3 2012 market share at 22.9 percent (compared to 18.7 percent in Q3 2011) and Apple sat in third place at 5.5 percent (compared to 3.9 percent in Q3 2011).

Apple recently slipped behind in China's smartphone market as well. Apple, which previously held the No. 4 spot in the Chinese mobile phone market, slipped to No. 6 in Q3 2012 due to its low number of shipments, according to research firm IDC. Out of China's 60 million mobile phone shipments in Q3, Apple's iPhone accounted for less than 10 percent.

Apple's iPhone 5 was released in September 2012 with new features like a 4-inch screen and 4G LTE connectivity. It's available in either black or white, and is priced at $199 for the 16GB model, $299 for the 32GB model, and $399 for the 64GB model with two-year contracts.

Sources: CNET, The Wall Street Journal



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Apple in China
By name99 on 1/14/2013 7:14:34 PM , Rating: 2
quote:
Apple recently slipped behind in China's smartphone market as well. Apple, which previously held the No. 4 spot in the Chinese mobile phone market, slipped to No. 6 in Q3 2012 due to its low number of shipments, according to research firm IDC. Out of China's 60 million mobile phone shipments in Q3, Apple's iPhone accounted for less than 10 percent.


Meanwhile in the REAL world, the world where what matters is profits and revenues, we have that
- Apple's revenues in China in 2009 were $769 million, 2012 they were $22.8billion.
- The growth rate was 250% 2009 to 2010, 350% 2010 to 2011, 83% 2011 to 2012.
- Apple's China revenue is now about 3/5 of its US revenue. Soon (within two or three years probably) Apple's revenue will be basically split in three equal portions: US, China, and Other (mainly Europe).

I don't think Apple are as worried about their China strategy as you are --- but thanks for the concern.

IF Apple are reducing their screen orders (and that's a big if) the reason is probably that they really do have a plan for a lower cost "third world" phone. This would probably be (IMHO) essentially an iPhone3GS with
- single core A6
- 512MB RAM
- a baseband that can handle basic HSPA+ but no more (like Rel 5). Even this may be more than makes sense --- would depend on the state of HSPA+ deployment around the world.
A phone like this would be a good match to local conditions, but ALSO would be a good match to Apple's developers --- basically more of what they've already been handling for years, and with enough RAM to be able to handle a few more years of iOS updates.




RE: Apple in China
By Cheesew1z69 on 1/15/2013 7:16:02 AM , Rating: 2
In the real world, the only people who care about profit are shareholders...


"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay














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