Apple: market share of iOS dropped while revenue rose
The leading multinational technology company, Apple Inc. recently reported the second quarter results of its global market share on May 2, 2017. The results revealed that the sales volume of iPhone dropped over the first three months of the year. According to the Statista, the market share of Apple with the iOS in the UK rose in the second quarter than the first quarter. In May 2017, Apple’s market share was 49.21 percent. However, it dropped slightly over five percent market share since January 2016. The tech giant sold 50.8 million iPhones in the period, down 1% year on year from 51.2 million.
Apple is the second largest vendor of smartphones worldwide while Android is the first. However, according to Dominic Sunnebo, Business Unit Director for Kantar Worldpanel ComTehch Eurpe, Android faced a fall too. “While Android continued to make gains in EU5, growth slowed to just 0.9 percentage points between February 2016 and February 2017, while iOS gained 2.7 percentage points to capture 21.8% of smartphone sales,”said Dominic. EU5 stands for European Union Five (France, Germany, Italy, Spain, United Kingdom). Android’s share fell modestly in Great Britain, shrinking by 0.5% points to 55% of smartphone sales. Gartner also revealed that, during the first quarter, Android accounted for 86.1 per cent of the global market, while iOS claimed just 13.7 per cent.
The statistic shows the market share held by leading mobile operating systems in the United Kingdom (UK) from December 2011 to October 2016. In the United Kingdom, the leading mobile operating system as of May 2017, was Apple iOS with 49.21 percent. In second place was Android with a 46.94 percent market share. Android was surpassed by Apple in October 2016.
Although the iPhone market share was down, the revenue of it rose. It was up 1% to $33.2bn in the second quarter results. Revenue in Europe grew 10% to $12.7bn, and up 5% for the company overall to $52.9bn.
Tim Cook, Apple’s chief executive, said: “We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus.
“We’ve seen great customer response to both models of the new iPhone 7 Red Special Edition and we’re thrilled with the strong momentum of our services business, with our highest revenue ever for a 13-week quarter.”
According to Apple company, fewer iPhones was sold than a year ago in the first three months. Apple boss Tim Cook said it because customers were waiting for the new iPhone. Despite the falling of the sales, revenue of iPhones still climbed 1% to $33.2bn due to its bigger, more expensive iPhone 7 Plus.
The lost revenue in iPhone sales was offset by services, such as Apple Pay. The services recorded an 18% increase in sales. Apple says use of Apple Pay has grown 300 per cent in the UK in the last year, with 23 banks now supporting the service.
So, what else is the reason caused the fewer selling of iPhone?
1.Revenue from China dropped 14%. Mr Cook blamed this consequence on the currency fluctuations. China generates 25% of all Apple’s profits and is the company’s second-largest market. The iPhone has only a 14% share of the China market, according to research firm Gartner.
2.Dominance of Apple in smartphones being chipped away by Huawei, Oppo and other cheaper rivals.
Tim Coulling, senior analyst at Canalys, said the Chinese smartphone market was under the highly competition. Many brands produce the same specification smartphone as Apple but sale them in a cheaper price. As of the fourth quarter of 2016, Huawei is the third largest vendor of smartphones, with 10.6 percent of the market share. The company sold more than 45 million units to end users in that quarter.
3.Apple in China is too hungry to be accepted
The other scenario comes from Oppenheimer analyst Andrew Uerkwitz and his team. In a note titled “Fading ‘Reality Distortion Field,'” they said the unique dominance of certain Chinese apps hurts Apple. Those apps are fully functional on Android, which dominates China, but not on iPhone. Apple doesn’t allow Tencent users to use the tipping function inside WeChat, for instance. That won’t sound like a big deal to people in the West, but in China apps like WeChat are used almost ubiquitously. It has 1 billion users.