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Huawei takes hit in second quarter 2019, iPhone loyalty is down

By nanoguy ยท 8 replies
Jul 18, 2019
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  1. A year ago, the smartphone landscape looked as if Huawei had the right ingredients to dominate the market, after managing to move past Apple in the number of devices shipped. And despite the trade war between the U.S. and China, the Chinese company has been inching closer to Samsung, who currently still holds dearly to its top spot.

    In its latest report, Kantar notes that while Huawei did manage a modest growth in the second quarter of 2019 when compared to the same period last year, it's overall share is down almost 2% in Europe. More telling is the fact that the brunt of it happened in the last two months when the Trump administration sent mixed messages about its stance on the Huawei ban. That, along with news that it would lay off hundreds of U.S. workers likely left Huawei fans and potential buyers hanging until they get a better idea of the situation.

    Samsung, Apple, and Xiaomi sold more phones in Europe as a result but didn't manage to replicate that in the U.S., where Google and Motorola have continued to make gains. The latter in particular sold its Moto E5 Plus and G6 Plus very well through Verizon, which is why it now holds 8.1% of the U.S. market.

    Apple's iOS share dropped a little in both Europe and the U.S. - where it was slightly more noticeable at 2.4%. About one in three phones sold in Q2 2019 in the U.S. was an iPhone, and one in five in Europe. The three best-selling iPhones in America were the XR, 8 and XS Max, with iPhone XR taking the crown at almost 8% of total smartphones shipped. In China, Huawei with its Honor subbrand sells one in every two phones, while Apple has also reached a respectable share of 19.7%.

    Huawei isn't the only one feeling the pressure of trade tensions, as Apple also stands to lose about a third of its profits if China were to ban its products, which are moderately successful in the country. On another note, trade-in site BankMyCell says - via Cnet - that iPhone owners are increasingly looking at Samsung's Galaxy line for their next purchase.

    The analysis was made between Q4 2018 and Q2 2019 and shows that Apple brand loyalty is down from 92% to 70%, which arguably is still a respectable figure. One in every four people trading in their iPhone X moved to an Android brand, while just a little under 8% of Samsung users switched to an iPhone. It's also worth noting the study is using data from a relatively small sample of 38,000 people, but it does paint a familiar picture of Apple neglecting some of their users with a renewed focus on services that squeeze additional revenue from its loyal users.

    To put things in perspective, Gartner says the whole smartphone market is set up for a disappointing 2019, estimating that 68 million fewer smartphones will be sold this year. With 5G expected to become commonplace in 2021, and foldable phones set to reach a modest adoption level in the next few years, it's hard for most people to justify upgrading to a newer phone - even as the wealth of great choices make it the best time to do so.

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  2. wiyosaya

    wiyosaya TS Evangelist Posts: 4,129   +2,420

    Surprise, surprise! When flagship phones have price tags in excess of $1,000, I would think that the genius analysts would have predicted this. I bought a Moto X4 on sale for 1/2 off at $200 a few months back, and even that is way more than I need.
     
    Andromadus, p51d007 and Evernessince like this.
  3. jobeard

    jobeard TS Ambassador Posts: 13,020   +1,561

    Proves there is Price Sensitivity.

    Pricing will have an adverse effect on 5G acceptance too -- just watch.
     
    p51d007 and wiyosaya like this.
  4. Evernessince

    Evernessince TS Evangelist Posts: 4,098   +3,655

    Yep, even budget phones are more then enough nowadays. The only reason I have an S10 is because I need to take good pictures for work and it was covered as an expense. Otherwise it's not any faster then my last 2 phones.
     
    p51d007 and wiyosaya like this.
  5. p51d007

    p51d007 TS Evangelist Posts: 2,016   +1,281

    People are FINALLY wising up to the fact that smartphones are WAY more powerful and have WAY more features, than is worth the price consumers pay for them. They are tired also (USA) of the pay a little each month...FOREVER.
     
    wiyosaya likes this.
  6. QuantumPhysics

    QuantumPhysics TS Evangelist Posts: 1,389   +1,020

    "iPhone loyalty is down"

    #1 The new iPhone won't even be released for 3 more months.

    #2 Just because people can't afford something doesn't mean they aren't loyal to it.

    Just wait till those APPLE CREDIT CARDS become available and affording the newest iPhone is doable in several dozens of easy payments of $19.99
     
  7. nismo91

    nismo91 TS Evangelist Posts: 1,004   +73

    I'm using 3-yo flagship (LG G5) and I see no reason to upgrade. yes it's not as fast as it used to but it is still a capable device even by today's standard. I couldn't care less about not getting android updates. it's just the battery that needs replacing. oh wait a minute, you can replace the battery yourself!

    to be honest I've been looking at some phones for upgrade but now every phonemaker seems to have put absurd price on everything. if my phone were to break I really don't know what I should get.
     
  8. captaincranky

    captaincranky TechSpot Addict Posts: 15,076   +4,083

    I would think this crappy and archaic Pentium dual core E6300 rig I'm using will outperform all but the most high end handset. Not to mention it's going on ten, and the screen still isn't cracked.

    If it won't beat a iPhone 10 in a 2 device race, too bad. I still won't call anybody without them having a toll free or local number, and my $10.00. a month landline works just fine for that.

    One thing the cell phone can claim as a "triumph", is that you can call your drug dealer when you arrive directly out his front of his house, and get "served" almost immediately. Hey, that's worth at least fifty bucks a month, right? But sometimes you need that fifty to feed your habit, and that's where it gets tricky.

    I think they should get a few of the simpler cell phones, and see if chimpanzees could be trained to use them. It's all in the name of science, and we still (IMO) have a lot to learn about the stupefying effect of the cell phone, acting in concert with any number of social media sites..

    I think humans and the great apes are the only animals on the planet to be "self aware". That's a pretty low bar if you think about it All the monkey has to do is recognize itself in a mirror, and all Kim Kardashian has to do to pass the test, is take a selfie everywhere she happens to be.

    I wonder if there is such a thing as, "being too self aware".. :rolleyes:
     
    Last edited: Jul 19, 2019
  9. captaincranky

    captaincranky TechSpot Addict Posts: 15,076   +4,083

    60 months (give or take), @ 20% interest, and it's all yours.
     

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