Since it released the iPhone 6 and iPhone 6 Plus in September, Apple has continued to dominate the smartphone market, taking in a whopping 92 percent of the industry's profits in the first quarter of this year, according to a new report from the investment advisory firm Canaccord Genuity.
With Apple selling less than 20 percent of all smartphones worldwide, that figure reflects the price premium that the company's fans are willing to pay for its iPhones.
Earlier this year, Canaccord Genuity put Apple's take of global smartphone revenues at 93 percent, so the latest sales represent a slight drop. However, Apple is likely to continue enjoying a strong presence in the market for some time to come, according to the new report.
With Apple expected to release new iPhones later this year, the firm continues to give fans new reasons to want to update their devices. By contrast, results from Android smartphone companies such as Samsung and HTC were "disappointing" in the most recent quarter, according to the Canaccord Genuity report.
Appealing to Apple and Android Fans
Apple's strong sales are set to continue, as only 20 percent of iPhone owners had upgraded to an iPhone 6 or iPhone 6 Plus through the end of June, said Canaccord Genuity's managing director Mike Walkley in his analysis. Apple set a new sales record during the first weekend the Apple iPhone 6 and 6 Plus were on the market.
In addition to attracting existing Apple aficionados who want to upgrade their devices, the iPhone 6 and iPhone 6 Plus are also siphoning off a number of Android smartphone owners, Walkley noted.
"[W]e anticipate continued high-end smartphone market share gains for the larger screen iPhone 6 devices as our surveys indicate a greater mix of Android smartphone consumers are switching to the iPhone 6 smartphones than during iPhone 5 series launches," he said. By the end of 2015, the number of iPhones in consumers' hands is likely to exceed 500 million, he added.
Lowered Overall Smartphone Expectations
In the second quarter of this year, the iPhone 6 and iPhone 6 Plus were the top selling smartphones across all four leading U.S. mobile phone companies, Walkley said in the report. The overall sell-through share was close to 50 percent, he said.
Even the release of competing, larger-screen Android devices didn't appear to make any dents in sales of the new generation of iPhones, Walkley added. In fact, while iPhone sales are expected to continue going strong, Android smartphone sales will likely be weak, leading Canaccord Genuity to lower its overall smartphone sales estimates for 2015.
Worldwide smartphone sales are on track to reach 1.39 billion by the end of the year, according to Canaccord Genuity. That's down from the previous estimate of 1.45 billion
Posted: 2015-07-13 @ 3:48pm PT
The Canaccord Genuity analyst who qualified the results of Samsung and HTC as "disappointing" should take economics 101. Both companies are decent market participants. With the temporary exception of new features introduced on flagships only, most of the smartphones market is a commodity business driven by high volumes and low margins. No doubt there will be consolidation, but that is natural at this stage in the market. Other than the marginal innovation segment, the anomaly is Apple, buoyed by people who buy the brand. Apple should open a tattoo parlor, its margins will soar further. I love Apple as a shareholder. As a consumer, I'll stick to $200 commodity smartphones.
Posted: 2015-07-13 @ 12:19pm PT
Apple's motto should be "with us you pay more and get 92% less, we're glad you still don't get it".
Posted: 2015-07-13 @ 12:12pm PT
Which basically means that Apple gouges your money.
And you get 92% less quality and functionality when you buy an iPhone than any other phone in the industry!
Poor Apple customers!
When will they get it???????