Apple’s iPhone continues to gain as industry slows
What’s better than one data point suggesting a particular story line? I have two – both of which show iPhone gaining ground across multiple markets, the US, Vietnam as its ‘unceasing’ sales continue.
Big in the USA
Apple grew 3% and has dominated over half the North American region for three consecutive quarters, wrote Canalys. While the market shrank 6% to hit 35.4 million, Apple grew 3% and it took 52% share – the top five biggest selling devices were all different models of iPhone. Samsung sales also increased 4%.
Following a rapidly recovered performance in 2021, the tide has turned in the North American smartphone market,” said Canalys Research Analyst Runar Bjørhovde.
“A combination of high inflation, decreasing consumer confidence, and an economic slowdown is shrinking demand in North America, which was previously the world’s most resilient market. Vendors are responding quickly to falling demand and are focused on reducing the risk of oversupply as they prepare for new launches in the second half of 2022. Most top vendors matched their shipments from Q2 2021, and the volume decrease was caused by the gap LG left remaining partly unfulfilled.”
“Consumer interest for low-end and high-end devices is sustaining the market, while the appetite for mid-range devices is vanishing fast,” said Canalys Research Analyst Brian Lynch.
And growing in Vietnam
Apple doubled shipments in Vietnam in Q2 22. This increase came as overall smartphone shipments fell 1% and reflected a move toward premium smartphones on the part of consumers. Around 3.2 million smartphones sold, of which iPhones accounted for 15.4%, so that’s around 492,800 iPhones shifted, according to Counterpoint.
Apple is benefitting as Chinese brands fail, with Samsung and Oppo still standing ahead of the company. Demand for budget devices was moderate during the quarter. High-end smartphone shipments saw big growth along with gaming-focused ones.
[Also read: Almost half of Android users are willing to switch – survey]
“Apple, at 115% YoY, saw the biggest growth during the quarter with Vietnamese people preferring premium smartphones. Apple is increasing its stores in Vietnam via official distributors, which is helping the brand to expand its customer reach,” Counterpoint said.
Research Analyst Akash Jatwala said,
“The premium price band (>$400) grew around 75% YoY driven by the iPhone 11, iPhone 13 Pro Max and Galaxy S series. Vietnam’s people are passionate about premium smartphones. Besides, Apple has recently reduced the prices of older iPhone models in Vietnam, making them among the cheapest in the world. Vietnam is becoming one of the major markets for Apple in Southeast Asia.”
This reflects statements from Apple CEO, Tim Cook, who last week noted that the company has seen no significant impact on demand for iPhones as a result of the macroeconomic gloom.
With growth in most markets and resilience in others, iPhone does seem to be bucking the overall industry trend.
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