• Gartner: iPhone Driving Fewer Overall Smartphone Sales



    Achieving a first in mobile, Gartner says smartphone sales grew 46.5% in the second quarter of 2013 to exceed feature phone sales for the first time in history.

    Worldwide smartphone sales to end users reached 225 million units, while sales of feature phones to end users totaled 210 million units (a decline of 21 percent year-over-year for feature phone sales).

    Despite the growth of this red-hot global smartphone market, Apple's share dipped better than 4 percent. Even though Apple sold 3 million more iPhones in Q2 of 2013 (vs. Q2 of 2012), it wasn't sufficient to keep pace with the overall growth of the smartphone market and, in particular, Samsung's mammoth expansion.

    Samsung maintained the No. 1 position in the global smartphone market, as its share of smartphone sales reached 31.7 percent, up from 29.7 percent in the second quarter of 2012.
    “While Apple’s ASP demonstrates the need for a new flagship model, it is risky for Apple to introduce a new lower-priced model too,” says Anshul Gupta, principal research analyst at Gartner. “Although the possible new lower-priced device may be priced similarly to the iPhone 4 at $300 to $400, the potential for cannibalization will be much greater than what is seen today with the iPhone 4. Despite being seen as the less expensive sibling of the flagship product, it would represent a new device with the hype of the marketing associated with it.”

    To review additional information in the new Gartner report - "Market Share Analysis: Mobile Phones, Worldwide, 2Q13" - click here.

    Source: Gartner
    This article was originally published in forum thread: Gartner: iPhone Driving Fewer Overall Smartphone Sales started by Michael Essany View original post
    Comments 15 Comments
    1. bigboyz's Avatar
      bigboyz -
      I feel the iPhone 5C is going to be a huge hit with consumers. Affordable, color options, possibly lighter and thinner. Would be the first time we have two "new" iPhones for sale at the same time as well. The second quarter may have been weak but I have a feeling quarters 3 & 4 will make up for it.
    1. Silverado1987's Avatar
      Silverado1987 -
      Quote Originally Posted by bigboyz View Post
      I feel the iPhone 5C is going to be a huge hit with consumers. Affordable, color options, possibly lighter and thinner. Would be the first time we have two "new" iPhones for sale at the same time as well. The second quarter may have been weak but I have a feeling quarters 3 & 4 will make up for it.

      Agreed. People can talk crap about the cheap and plastic but hell People still buy samsungs.
    1. politicalslug's Avatar
      politicalslug -
      Here is why the analyst is wrong: unlike the competition, Apple knows what it's doing. Any budget model they release will have a profit margin wide enough, and price low enough, to more than negate any cannabalization of its flagship model.
    1. confucious's Avatar
      confucious -
      Why would anyone want a cheap iPhone? If you want cheap crap, buy Android.
    1. dsg's Avatar
      dsg -
      ^Agreed, also if you want colour on your iPhone buy a coloured case
    1. Schnedi's Avatar
      Schnedi -
      Quote Originally Posted by confucious View Post
      Why would anyone want a cheap iPhone? If you want cheap crap, buy Android.

      and here someone stupid enough to compare a device (iphone) with an operative system (android). Lol...
    1. dsg's Avatar
      dsg -
      that's just weak semantics as Android comes on most other devices

      Edit: not to mention you new exactly what he/she meant
    1. politicalslug's Avatar
      politicalslug -
      I just re-read the title of this article. How is iPhone driving fewer overall smartphone sales when the article explains that not only are more iPhones being sold, but overall smartphone sales are growing and now command more sales than feature phones. The article content is the exact opposite of the article title. Is M.Essany just stupid or so desperate for page views that he'll put anything down as news?
    1. Colwood's Avatar
      Colwood -
      I'd get the 5c over the 5s , currently using a iphone 3G and iphone 5
    1. bigbaba's Avatar
      bigbaba -
      Did the iPod mini and then nano cannibalize sales of the classic? Yes. Did Apple sell more iPods in total though? Yes. Personally I didn't like the Classic iPod and didn't purchase one until the nano came out. I wanted something smaller and cheaper at the time.

      Something needs to be done to combat the cheap junk that the other companies spew out. At the end of the day, consumers want something new and shiny that has fresh marketing.
    1. yatezy's Avatar
      yatezy -
      Quote Originally Posted by confucious View Post
      Why would anyone want a cheap iPhone? If you want cheap crap, buy Android.
      Because not everyone wants to pay through the nose for a phone. There will be people who want in on the iOS ecosystem but don't want to pay Apples prices.

      Even when subsidised on contract you have to pay a fortune for the phone. I got an S3 on a 2 year contract and paid exactly £0 for it on the week it came out.

      I paid £70 for my 3GS with a 2 year contract just before the i4 came out. And before the quality of the phone gets slated I'm sure the HTC One would for far cheaper subsidised than the iPhone yet beats it on quality, internals, power etc.
    1. confucious's Avatar
      confucious -
      Quote Originally Posted by yatezy View Post
      yet beats it on quality, internals, power etc.
      You are kidding, aren't you? Or do you mean compared to the 5C?
    1. tridley68's Avatar
      tridley68 -
      Quote Originally Posted by confucious View Post
      Why would anyone want a cheap iPhone? If you want cheap crap, buy Android.
      So true thanks for the laugh.
    1. yatezy's Avatar
      yatezy -
      Quote Originally Posted by confucious View Post
      You are kidding, aren't you? Or do you mean compared to the 5C?
      Nope not kidding, it's cut from aluminium, has a full 1080p screen, a quad processor, excellent camera and so on so forth.

      The new i5s will have a finger sensor over it, which realistically, most people ain't probably that bothered about. And the HTC beats it everywhere in looks.

      And you can probably get it for free on contract.
    1. jOnGarrett's Avatar
      jOnGarrett -
      Quote Originally Posted by confucious View Post
      You are kidding, aren't you? Or do you mean compared to the 5C?
      what makes you think he's kidding? the One absolutely destroys the 5 in ever way. the 5S or whatever its going to be called will have the same display, same sound, same OS and a minor bump in processor speed and camera MPs.
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