Apple Prevails While Worldwide Smartphone Market Declines

Apple Prevails While Worldwide Smartphone Market Declines

A new report from Kantar World Panel lays out how Apple is surviving through its strong brand name while the worldwide smartphone market continues to decline 

A new report from Kantar World Panel has shed some light on how Apple, Inc. (NASDAQ:AAPL) is cashing in on the strong user base and loyalty for its products throughout the world. The iPhone maker experienced growth in shipments in U.K., US and Australia with 5.6%, 5.2% and 3.8% respectively.


Subsequently, as per the data provided by Kantar World Panel, Samsung still holds the crown for the largest number of shipments for the first quarter of 2017. This is partly due to the introduction and launch of the company’s latest Galaxy flagship phone, the S8. Moreover, since the Korean smartphone manufacturer has phones that range from low to high cost that explains the lead in smartphone shipments. 


Moving over to the premium offerings by Apple, the company has 51.6 million iPhones shipped in the first quarter of the year, a 0.8% year over year growth in shipments. Trailing behind Apple, Chinese brands Huawei, Oppo and Vivo take the rest of share of smartphone shipments around the world. 


A point to note however, with this data is the fact that Apple experienced a decline in shipments in China and Japan with an 8.6% and 1.7% decline respectively. Apple introduced the iPhone to China in 2014 to great success however, it lost out on market share due to local Chinese brands winning the popular vote with their low-cost, powerful offerings. Kantar World Panel states that Chinese iPhone sales only accounted for 12.4% of the local market, the lowest levels since 2014. On the other hand, the iPhone 7 still managed to account for a 3.8% market share of all phones sold in the country in 1Q17.


It is interesting to note that while the worldwide smartphone market experiences decline, Apple’s strong brand name is helping the company get ahead against the competition. The iPhone maker has experienced declining iPhone sales in the recent quarters and the services sector side is being driven by the strength in users. Moreover, the introduction of iPhones on the high-end and the launch of the iPhone SE has helped Apple cover up both sides of its average selling price, helping bringing in more revenues per iPhone.


Additionally, a new report from 9to5Mac has stated that the iPhone SE topped the recent American Satisfaction Index for May 2017. The low cost offering from Apple, which was released last year, was poised to retain customers who were still loyal to the four inch iPhone form factor.


It is without a doubt that Apple’s brand is one that is now a household name where it’s also considered to be a status symbol. With an ever declining smartphone industry, Apple’s growth, albeit a small one is just a precursor to what is yet to come.