Samsung and Apple lose ground Huawei

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UNITED STATES (VOP TODAY NEWS) — Samsung and Apple are increasingly losing their share of the smartphone market under the onslaught of Huawei, as consumers are deterred by the high prices that are inherent in their premium models, according to a new Gartner study.

The largest manufacturer is Samsung with a share of 17.3%. Koreans sold 70.8 million smartphones for the designated period. In second place is Apple, which controls 15.8% of the global market. Huawei, ranked third, is only 1% behind (14.8%). The top five also included the OPPO and Xiaomi with a score of 7.7% and 6.8%, respectively.

Apple retained second place in market share, but recorded the largest decline in demand for mobile devices – from 17.9% to 15.8%. In the fourth quarter of 2018, the company sold 4.5 million iPhones. This is 8.5 million less than in the same period in 2017.

Gartner sees two reasons for the decline in demand for Apple smartphones: a fall in demand for iPhones in China and user interest in older models.

Bernstein analyst Tony Sakkonagi spoke earlier on this topic, saying that, for example, iPhone owners have begun to use them longer. Over the past year, the average period of ownership of the iPhone has increased to four years. The expert believes that Apple itself has tripped, starting a massive program to replace the batteries of smartphones iPhone at a reduced price. Thus, she breathed new life into used smartphones, after which those who thought about the upgrade decided to keep their smartphone for a while.

Expert Gartner noted that the Apple iPhone and Samsung Galaxy lines only get “gradual and minor improvements” in each device update cycle. They cost about $ 1 thousand, so consumers prefer cheaper devices with comparable characteristics offered by Huawei and other Chinese brands. Anshul Gupta adds that people are increasingly just as “proud” of using a Chinese-made smartphone, like Apple and Samsung products.

The new Samsung phones are also too expensive: the entry-level Galaxy S10e costs from $ 749, which may attract more buyers with a limited budget, but the Galaxy S10 costs $ 899, and the price tag on the Galaxy S10 + starts at $ 999. And this is the basic configuration. If you choose a model with increased RAM or disk storage, the price, of course,

People used to stand in long queues for new phones, because the gadgets had radically improved cameras, clearer screens and high data transfer rates – all of these functions are fundamental to a modern smartphone. But now there is a slowdown in this kind of innovation. CNBC notes that often people just want their smartphone to work longer.

Samsung introduced phones with brighter displays, fingerprint scanners that hide under the screen, and a feature that allows you to charge cordless headphones by placing them on the back of the phone. These are nice little things, but why would anyone with a Galaxy S8, where a good display and face recognition, want to spend another $ 850 or $ 999 to get the same, but a little better?

Tim Cook in his letter to investors called the fall of the Chinese market as one of the reasons for the revision of the forecast Apple. Apple reported a reduction in shipments in China in the fourth quarter by 19.9%, but was able to remain among the top five mobile gadgets in the country in sales. Xiaomi showed the worst results, showing a 34.9% drop in shipments compared to the same period a year ago. Total shipments in China fell 9.7% to 103 million units.

“Apple is really losing ground on several fronts, especially when it comes to emerging markets such as China,” said Anschul Gupta, senior research director at Gartner, told CNBC. In flagship smartphones Huawei, Oppo or Vivo, you can find the same functions as Samsung and Apple flagships, but the first ones are significantly cheaper. ”

Analysts note the stagnation of global smartphone sales: in the final quarter of 2018, end users worldwide purchased 408.4 million devices, which is only 0.1% more than in the same three months of 2017.

“The demand for smartphones in the initial and middle price segments remained high in all markets, but sales of high-end devices in Q4 2018 continued to slow down,” comments Anshul Gupta. According to the expert, the slowdown in innovation in the premium category, together with rising prices, forced users to postpone the purchase of expensive devices, which led to a virtually zero market growth in the past quarter.

The demand for the iPhone has weakened in most regions, with the exception of North America and the mature markets of the Asia-Pacific region. The most pronounced drawdown was observed in China, where the market share of Apple fell to 8.8% from 14.6% in October-December 2017. At the end of last year, iPhone sales decreased by 2.7% and amounted to a little more than 209 million units, counted in gartner.

Samsung’s flagship models, such as the Galaxy S9, S9 + and Note9, also failed to spur demand for South Korean vendor smartphones. In addition, in the middle price category Samsung continued to push Chinese brands Xiaomi and Huawei. As a result, quarterly Samsung sales fell 4.4% to 70.78 million units. Due to weakening demand in China, Western Europe and Latin America for the entire 2018, Samsung registered a decline in smartphone sales by 8.2% to 295 million units.

Analysts call 2018 the year of Huawei. In the final quarter, the company sold more than 60 million smartphones, having improved the result a year ago by 37.6%, which allowed it to become the fastest growing smartphone manufacturer among the top-5 brands. Huawei’s positive dynamics persisted throughout the year, which allowed it to narrow the gap with Apple. Annual sales of Huawei smartphones totaled almost 203 million units.

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