Apple (AAPL) Smartphone Market Share Drops to Lowest Since 2011

on July 26 2013 9:53 AM
iPhone 5 models
iPhones are depicted. Reuters

Apple Inc.'s (Nasdaq:AAPL) second-quarter share of the smartphone market fell to its lowest level in almost two years, according to a Friday report from market researcher ABI Research.

Apple's share of the market fell to 14.6 percent for the latest quarter, which is the lowest level since the third quarter of 2011, even as premium smartphones like the iPhone and the Samsung Electronics Co., Ltd. (KRX:005935) Galaxy S4 performed relatively well compared to cheaper smartphones and ordinary mobile phones. Smartphone shipments represented about half of global mobile phone shipments for the quarter. 

ABI researchers explained Apple’s market share loss as due to Samsung’s successful Galaxy S4 launch, as well as the growth of cheap mass market smartphones.

As Chinese firms like Huawei Technology Co Ltd (SHE:002502), ZTE Corporation (SHE:000063), and Lenovo Group Limited (HKG:0992) produce more sophisticated smartphones, profit margins at Samsung and Apple will come under pressure, said ABI Research.

Still, Barclays PLC (LON:BARC) analysts wrote earlier on Wednesday that iPhone sales carried the latest financial quarter for Apple, showing stable margins and strong sales in markets outside of Asia.

Apple’s latest quarterly results, from Tuesday afternoon, showed declining sales of iPads and Macs.

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