Apple’s iPhone SE picks up share in Germany as iPhone 12 launch looms

Apple has introduced a new iPhone SE

Apple has gained iPhone market share in Germany even as smartphone sales in that country fall as much as 27 percent – could this trend be global?

What the data claims

The latest Counterpoint data makes a series of claims concerning the German smartphone market:

• The market declined 27% y-o-y and 15% sequentially due to COVID-19, but is now bouncing back.
• iPhone SE 2020 became Germany’s biggest-selling mid-range device.
• Apple’s share grew from 16% to 23%
• Xiaomi sales climbed 250%.
• National GDP shrank 10.1%, consumer spending shrank 10.9%.
• Samsung retained a 37% share.

Dented demand

At the high-end, demand has been dented by the pandemic. The $800+ segment shrank to 7% from 19% while the $300-600 segment climbed to 30% from 23%. iPhone SE helped drive this change. Consumers also say they will wait longer for their next smartphone purchase.

The report concludes that as governments move to prioritise economies over human survival, demand may increase.

I’d warn that the inevitable second (and third) lockdowns which will arrive once many government’s inevitably fail to manage the pandemic effectively will likely put paid to any such recovery.

Is this global?

Signals are that Apple is weathering the pandemic relatively effectively.

Even with 85% of employees working from home it continues to introduce new products and services, and it’s quarterly results show that while it feels the damage, its business remains resilient enough to get through it.

What’s at stake is upgrades.

If the German experience is right, Apple has successfully encouraged iPhone users at the mid-range and entry-level markets to upgrade to the iPhone SE 2020.

That’s great, but it’s big push now will be the high-end devices which just aren’t selling in the same volume at the moment, according to Counterpoint.

However, with up to 40% of existing iPhone users now thinking about upgrading their device according to recent survey data, Apple’s challenge is to convince them to opt for the high-end devices, rather than the mid-tier.

What comes next

All eyes are now on Apple, which is expected to introduce its new 5G iPhone 12 family on or around October 13.

Please follow me on Twitter, or join me in the AppleHolic’s bar & grill and Apple Discussions groups on MeWe.