Next-generation iPhones likely to focus on internal improvements.
Apple's Share of Worldwide Smartphone Market Slides as Samsung Continues to Surge
In the smartphone market, Apple's shipments of 26 million iPhones were up 27.5% year-over-year, but with the market growing at a 42% clip, Apple's share slid from 18.8% to 16.9%. Apple's share had registered at 24.2% in the prior quarter when the company was still riding high on the relatively new iPhone 4S that was expanding into new markets such as China.
Worldwide Smartphone Shipments in 2Q12 in Millions of Units (Source: IDC)
While Samsung has ceased releasing data on smartphone sales for competitive reasons, IDC's estimates peg the company at having shipped 50.2 million smartphones during the quarter, up 172.8% year-over-year and allowing Samsung to easily take the crown in a booming market that topped 150 million shipments during the quarter.
Apple posted an expected sequential decline last quarter, similar to years past. The quarter-over-quarter shipment decline came six months after it unveiled its latest iPhone. The decline is not unusual as iPhone shipment volume is highest in the first two quarters after its release. The company’s once-a-year release cycle usually results in two quarters of lower volumes leading up to the next-generation model introduction. Nonetheless, Apple made significant inroads into new markets and segments, including smaller regional carriers and prepaid service providers.Looking at the mobile phone market as a whole, Apple's performance looks a bit better, with the company's 27.5% year-over-year growth approaching Samsung's overall 29.7% growth as the feature phone business has continued to erode with the consumer shift to smartphones. The mobile phone market as a whole grew by only 1% year-over-year, meaning that the smartphone segment's strong growth was almost entirely offset by losses in feature phones on a unit basis.
Worldwide Mobile Phone Shipments in 2Q12 in Millions of Units (Source: IDC)
Apple's share of the total mobile phone market registered at 6.4% for the quarter, up from 5.1% in the year-ago quarter but down from last quarter's 8.8% share.