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back to article PEAK APPLE: 'iPhone sales STALL' at first sniff of fresh droid competition

Apple is experiencing a brutal slowdown in global iPhone sales as rivals wolf down an increasing share of the smartphone market, it's claimed. While Cupertino's competitors have performed well so far this year, Apple's own sales have spluttered along, according to a report from market research firm IHS iSuppli. “Apple’s iPhone …

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If it turns out that they really did electrocute that poor Chinese lass, then they can expect their remaning sales volumes to plummet in the very near future.

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Anonymous Coward

I think it is pretty unlikely. Lets not forget that a lot of kit gets abused, there's a lot of fakes about and then there's those who like to try to get a pay out.

Samsung's sales aren't great either. I think there's a general apathy to smartphones now. They're not really getting any smarter from a usefulness or time/effort saving perspective. If anything they are wasting time with the amount of features being added.

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@AC

"...and then there's those who like to try to get a pay out"

That is mostly American tradition... most other jurisdictions are more sensical when it comes to frivolous lawsuits

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WTF?

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Posted Thursday 18th July 2013 16:02 GMT

obnoxiousGit

If it turns out that they really did electrocute that poor Chinese lass, then they can expect their remaning sales volumes to plummet in the very near future.

--

Seriously ? You even didn't get that was an absolutely fake news ?

Of course an ugly looking girl couldn't have been electrocuted... right ? Please..

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Anonymous Coward

It's not apathy - it's just that by now pretty much everyone who wants one has one.

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Paris Hilton

The news said that differently beautiful girls are safe from malfunctioning electrical appliances?

Paris because .... you know you are unsure whether she would be endangered.

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@ Joerg

"Seriously ? You even didn't get that was an absolutely fake news ?"

Please show us exactly where it has been reported that this girl's death " was an absolutely fake news".

The ONLY thing "fake" here is your grip on reality.

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Trollface

Re: @ Joerg

You know that, if a JesusPhone is involved, only HEALING can occur.

Praise Be!

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Anonymous Coward

@obnoxiousGit

Nominative determinism strikes again.

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Re: @obnoxiousGit

Yes, and I happen to like it as well.

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Whilst I'm sure that we'll see phones heading towards slower growth as the market matures, I fail to see how "Samsung's sales aren't great either" - I mean, they're only the number one phone and smartphone company...

And note the article talks in terms of market share too, not just absolute numbers.

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Contradictory reports

Verizon for example reports their sales of iPhones up 41% year on year (and comprising 51% of ALL of their smartphone activations).

Lets wait until we see something other than guesses by industry analysts shall we?

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Re: Contradictory reports "Verizon for example reports...."

Yes, entirely correct - but in the US. This report appears to be addressing the global market - although I still take it with a large pinch of salt.

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Stop

Re: Contradictory reports

Remember that Big Red is just one carrier in one country where Apple offerings are relatively more robust in the marketplace. There is a larger market that must be taken into consideration

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Anonymous Coward

Re: Contradictory reports

Industry analysts, like journalists, seem to mostly be paid for quantity of people reading their output, not according to its accuracy.

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WTF?

Re: Contradictory reports

Weird reports...i recall this article

http://www.theregister.co.uk/2013/07/12/poor_iphone_sales_mean_verizon_could_owe_apple_14bn/

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Anonymous Coward

Re: Contradictory reports

Verizon are the largest in the US so it's pretty significant.

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Re: Contradictory reports

It is only in north america that Apple sells to massive isheep herds. In every other corner of the globe (where people truly do have independent intelligence) their sales are rightfully plummeting.

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Headmaster

Re: Contradictory reports

I believe the proper collective noun is iSheep FLOCKS

You're welcome

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Re: Contradictory reports

sigh

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404
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Re: Contradictory reports

Pretty much giving iPhones away, actually. It's the default deal now- sign up with Verizon, get a free iPhone.

Not surprising. Everybody has one (I'm saving my pennies for a Z10, but there it is)

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Stop

Re: Contradictory reports

The only iPhone they offer for free is the 4. They also offer many free Android phones (the Droid Incredible, the LG Lucid and the Samsung Galaxy Stellar to name 3), so no, that isn't the reason.

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Re: Contradictory reports

Verizon isn't a global network mate. I think if you google sales results per quarter for iphones via country you will see their strongest performance is in Americas, but weaker in Europe, Japan, APAC regions, hence the lower figures on a global rate vs the other manufacturers.

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Big Brother

iOS7

And all this is before the royalties to Google are due when they cough up to lifting wholesale Androids look and feel.

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FAIL

Re: iOS7

I didn't know Eadon had a brother.

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150million over 134million is a huge increase... what stall ?

And every single year the quarter before a new model gets released obviously there is a drop in number of units sold.

Now, the press trying to spin things up telling that Apple would be losing market to Google while still selling 150million iPhone over 134million the previous year... that is just kinda silly.

Also, the iPhone 5s is going to sell in the 40-50million range during first quarter.. Apple will have sold 100million units in less than 6 months.

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Headmaster

Re: 150million over 134million is a huge increase... what stall ?

It is not difficult to distinguish between relative share and absolute units sold.

Try to keep up!

iFonnery seems to be stuck at 20% of the total market. So it shall be.

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Re: 150million over 134million is a huge increase... what stall ?

I was going to post the same thing. Most companies in most industries would be ecstatic with a >10% growth in sales, it only looks bad because they were doing 100% a couple years ago.

As for "being stuck at 20%", they're actually stuck at a bit under 10% - that's their share of the OVERALL mobile market. The "smartphone market" has no meaning since in a few years all phones will be smartphones. The thing is, almost all the additional growth in the "smartphone market" will be low end devices.

The high end has been saturated by iPhone, Galaxy S and the like, along with a pittance of Windows and RIM devices. There is little growth to be had in that high end, not just for Apple, but for Android as well. Android's market share will continue to grow, but it'll all be the low end devices that are replacing feature phones all over the world. Idiot analysts will say Apple is doomed as their "smartphone market share" falls from 20% to 10%, not realizing that they are still seeing a single digit amount of growth in overall sales each year, and still making huge wads of cash.

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Re: 150million over 134million is a huge increase... what stall ?

Yep, must be tough for Apple to get by with only 20% of the global market. Oh, and that's the profitable 20%, too. Where did it all go so wrong?

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Stop

Re: 150million over 134million is a huge increase... what stall ?

I'm not entirely sure Apple cares about their market share nearly as much as everyone else seems to.

I'm pretty much entirely sure that they don't care about their overall market share when you include feature phones and "actual" phones.

What Apple, I suspect, do care about is money. Are they making more money than they were before (selling more units and recouping dev costs etc), and do they think that that trend will continue.

I suspect that industry analysts, tech reporters, and commentards (not excluding or excusing myself here) care more than they do.

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Re: 150million over 134million is a huge increase... what stall ?

For years after 2007, Nokia Symbian was number one, the sales were increasing, and in fact increasing faster than Apple's (even though that's comparing just some of Nokia's phones too all of Apple's phones). Even just one single model of large number of Nokia smartphones is still the best selling model of smartphone - the 2009 released 5230. But what did we hear from the media? Years of "Nokia are doomed, they are plummetting, Apple are leading" all based on the fact that Nokia's *market share* was falling, and Apple's was increasing.

So you know what? It's payback time. Now that Apple's share falls whilst other platforms increase, this is what's going to happen.

(And 150 million phones a year? Sorry, still less than Nokia and Samsung.)

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Re: 150million over 134million is a huge increase... what stall ?

True, though they are simply being bitten by the thing that promoted them for years - the ill-defined category of "smartphone" has also meant that for years, 100% of Apple sales have been compared to a fraction of Samsung and Nokia's.

Also note that Apple sales do include lower end phones - as when a new model comes out, the older generations are still on sale for years.

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Re: 150million over 134million is a huge increase... what stall ?

The whole flop versus "runaway success" is annoying anyway. Apple get praised for coming 3rd with 10% of the market after 6 years, and selling 1 million in 76 days. Other companies are regarded as a "flop" or "failure" because they didn't become number one in 6 months, or sold 100 million in 6 months.

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Re: 150million over 134million is a huge increase... what stall ?

And I'm pretty sure that most people don't care about their profit as much as Apple do.

That's the point. Why should we care about that? People care about other things - the products, the popularity. Never in the most heated Linux vs Windows argument did someone go "But look how much money Bill makes!"

It seems entirely reasonable that analysts, journalists and commentards write about what people in general care about, not what Apple care about.

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If I had a heart

it wouldn't bleed for Apple.

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"[A]n 'astounding' number of smartphones hit the market this year (...)"

So production keeps ramping up, even as the market is all but saturated.

Suddenly I am reminded of 1984.

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Re: "[A]n 'astounding' number of smartphones hit the market this year (...)"

Apart from the fact I was still in my diapers, what else happened in 1984?

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Big Brother

Re: "[A]n 'astounding' number of smartphones hit the market this year (...)"

Obama fought Evil and won, he was then elected president "for life". Everything changed! Old Posters using the then in-vogue "Obamification" style can still be found.

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Joke

... in 1984 ...

the PC market was saturated with competing platforms .. Mac .. IBM XT/AT .. Commodore ..

all the people that really needed computers pretty much had them .. growth was getting stagnant ..

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Re: "[A]n 'astounding' number of smartphones hit the market this year (...)" (@An(other) Droid)

Ummm, the Macintosh was introduced and sold very quickly, then sold very slowly. Tommy Cooper died live on stage. The GCSEs were introduced. If just 1,900 voters had felt differently, Reagan would have been the first candidate to carry every single US state (though Nixon's reelection was more successful if you discount the electoral college). Frankie Goes to Hollywood were massive. Jet Set Willy was released.

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Re: "[A]n 'astounding' number of smartphones hit the market this year (...)"

Apart from the fact I was still in my diapers, what else happened in 1984?

We were at war with Eurasia. We were always at war with Eurasia.

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Anonymous Coward

So 'essentially flat' means up 12%?

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Headmaster

No.

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WTF?

"So 'essentially flat' means up 12%?"

Exactly, I am going to ask my boss for 12% and see if I can spin that as "flat"

Really, the journalist/analyst who wrote this tripe should ashamed, and the editor that allowed it be fired.

the anti-Apple spin from people who intend to profit by talking the shares down knows no apparent end.

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Holmes

Peak Apple == Pear

Seriously, we are into Conspiracy Theories now?

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If I sold 150 Mio. gadgets…

with Apple's margins I'd be well made up.

Okay, this is the tech industry so growth rates not in three figures are considered disappointing. I think iSuppli has been reasonably reliable in the past though I think market saturation is probably more of a pressure than the competition. Once the novelty has worn off of having a good smartphone so does the desire to get another. Android devices like the SII and later Nexus' are more than enough for most people.

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Re: If I sold 150 Mio. gadgets…

Basic smartphones are now lowering in price and pushing out feature phones, so the size of the smartphone market is increasing while that of the feature phone market shrinks. That doesn't mean that the value of the market has changed much, just that it's being counted differently. The numbers that Apple, Samsung, HTC et al. are *really* going to care about is how much profit was made; and the overwhelming majority of that profit comes from the high-end devices. The 'trouble' is that a 2-year-old high-end smartphone is absolutely fine, so people are sitting out their 2 year contracts rather than upgrading early, so while the addressable market is growing, the frequency of repeat business is tailing off; published sales of the Galaxy S4 look like it is going to sell a-bit-but-not-much more than the S3 did (10-15%?), but the marketing push has front-loaded that (i.e. more sales immediately post-launch but a quicker fall-off).

So, breaking news: after 5 years of crazy growth, the market is maturing. With the most profitable part of the market saturated, lower-margin markets must be tapped to continue profit growth. The trickiest thing is to avoid cannibalising too much of your high-end, high-margin market by introducing a new cheaper - sorry, more affordable - product but Apple have form on managing this fairly well and I've heard just one or two isolated rumours about a cheaper iPhone...

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Meh

Re: If I sold 150 Mio. gadgets…

My company, a relatively big one in its space, rewards people with iPhone 4s on fully paid tarifs (what's the plural of 4s anyway). It's not working anymore. Not working in the sence that people go meh.

Maybe, as some have suggested, it's because smart phones are old hat. However, i think it's also an iPhone issue. Sure, they're not 5, but you'd expect a modicum of excitedness.

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Anonymous Coward

Franchise?

Since when has the iPhone been a franchise?

Any report that describes a poduct as a franchise should be shredded without further reading.

(unless it refers to a real franchise of course)

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Devil

Like Jehova's Witnesses pushing iPhones on every corner, forever.

True. A cult is one step beyond.

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