Apple crushed Samsung in the U.S. over the holidays

Steve Williams

Site Founder, Site Owner, Administrator
By Brad Reed | BGR News

Although Samsung rules most of the world in terms of total smartphone sales, here in the United States it’s still having a tough time consistently beating Apple. Counterpoint Research passes along its latest report showing that Apple’s iPhone surged past Samsung’s smartphones in terms of market share in the U.S. over the holiday season, growing from 31% to 43% over the span of just a month. Samsung, meanwhile, saw its market share dip from 34% to 30% over the same period as sales of its popular Galaxy S4 and Galaxy Note 3 devices were overrun by sales of the iPhone 5s among holiday shoppers.

Counterpoint research director Neil Shah credits Apple’s more aggressive sales strategy that included holiday gift cards at Apple stores as a key driver for iPhone adoption this past December.
“What we saw was a little bit surprising but essentially ‘calculated aggression’ from Apple to ward off competition by offering so many discounts and giveaways for just a three month old portfolio, a very hard deal to resist for consumers,” he says. “Effective promotions also helped Apple correct iPhone 5c inventory, bringing it to a manageable level compared to the start of the quarter.”

Counterpoint’s press release follows below.
Apple Floors the Competition in the US during December 2013
Hong Kong, Seoul, Mumbai and London – January 27, 2014 — According to the latest research from Counterpoint’s Monthly Market Pulse December report, Apple’s smartphone share in the US soared during December, a key month in the holiday season quarter. Samsung held the top spot in November boosted by healthy uptake of its new Galaxy Note 3 but Apple topped the sales charts in the crucial December month.

Apple benefitted from the late November Black Friday deals as numerous retailers sold the iPhones at a discount and the momentum continued until the Christmas season. For example, Black Friday gift cards were given out along with iPhone purchases and in addition some retailers like BestBuy, Walmart, Fry’s shaved off the price for iPhone 5s and 5c models by US$30 to as much as US$85. Sprint also had an aggressive offering for the iPhone 5c, lowering the price tag by US$100 for certain customers.
The timely marketing promotions for its refreshed iPhone portfolio helped Apple boost sales during December as the Cupertino vendor topped the market with an impressive 43% market share during the month, its highest point in 2013. As a result, Apple & Samsung combined captured almost three-fourths of the US smartphone sales during the December month.

Commenting on Apple’s performance, Neil Shah, Research Director at Counterpoint Research explains, “Without any more constraints from the supply chain, aggressive promotions, support from the retail and operator channels and unprecedented consumer demand across US, iPhone 5s sales jumped more than 25% sequentially. Effective promotions also helped Apple correct iPhone 5c inventory, bringing it to a manageable level compared to the start of the quarter.”

Mr. Shah, further added, “What we saw was a little bit surprising but essentially “calculated aggression” from Apple to ward off competition by offering so many discounts and giveaways for just a three month old portfolio, a very hard deal to resist for consumers.”

Ludolf Ebner, Partner at Counterpoint Research, notes, “Apple’s year-end holiday quarter promotions were not just confined to the US but were also seen across many developed markets including Europe, where sales also jumped sequentially during December.” Mr. Ebner, further comments, “Healthy supply-demand in Q4 2013 has helped Apple lower the channel inventory leaving sufficient room to control the channel sales in 2014; unlike the situation in early January 2013 when the channel inventory had almost doubled slowing down Apple’s sales growth during the Jan-Mar period of 2013 in USA.”

Meanwhile, the third largest smartphone vendor in US, LG, saw its share slip to 10% in December after a healthy uptick in October & November. It was however better off than other brands like Nokia or HTC. After a good traction for its low-cost ‘Moto’ portfolio in October, November, Motorola, saw its sales dipping a bit in December, partly due to the limited availability of Moto G stocks across the channels during the month.
 

amirm

Banned
Apr 2, 2010
15,813
38
0
Seattle, WA
Yeh, looks like there is not a lot of celebrating going on:

Apple Inc. AAPL -7.99% reported selling fewer iPhones than projected at year-end and said revenue in the current quarter might decline, sending its shares down sharply in after-hours trading.

The results highlighted new dynamics and intensifying competition in the smartphone market. Apple continues to target the market for high-end phones, even as demand accelerates for lower-cost models, particularly in emerging markets. But Apple is resisting the urge to release a truly low-cost phone that could crimp profitability.

"Our objective has always been to make the best, not the most," said Apple Chief Executive Tim Cook on a conference call with analysts.

The Cupertino, Calif., technology company said it sold 51 million iPhones in its fiscal first quarter ended Dec. 28, up 7% from the year-ago period, after the company introduced two new models in September. Sales of iPhones, however, fell short of analysts' expectations for 55 million units. In North America, iPhone sales fell, Mr. Cook said.

The results may fan concerns about Apple's growth prospects after its first decline in annual profit in more than a decade. Apple also is facing questions about whether it can repeat its innovative success with a new product category—as it did with the iPhone in 2007 and iPad in 2010.

Apple shares fell 7.8% in after-hours trading, to $507.40. In 4 p.m. trading, shares rose 0.8%, or $4.43, to $550.50.

Last year, Apple introduced a lower-priced model, the iPhone 5C, along with its flagship iPhone for the first time ever. The new 5C provided consumers with a wider range of prices for new iPhones, but it was only $100 cheaper than the 5S and customers continued to opt for the premium 5S.

Strategy Analytics said Apple's global market share in smartphones fell to 17.6% in the fourth quarter of 2013 from 22% a year earlier.

Apple sold 7% more iPhones, but that lagged behind the 34% increase in world-wide smartphone sales.

For the first fiscal quarter ended Dec. 28, Apple said net income was essentially unchanged at $13.1 billion. Earnings per share increased 5%, to $14.50, from $13.81, as Apple's share count declined because of its aggressive buyback program.

Revenue grew 5.7% to $57.6 billion from $54.5 billion in the same period a year earlier.

The company is looking toward a newly signed contract with China Mobile Ltd. 0941.HK +0.20% , the world's largest wireless carrier with more than 750 million subscribers. Mr. Cook said the full impact of the China Mobile deal may take time as the carrier extends its 4G wireless service from an initial 16 markets to 300 by year-end. Apple said sales in Greater China, which includes Hong Kong and Taiwan, rose 29% in the December quarter.

Read the rest here: http://online.wsj.com/news/articles/SB10001424052702304007504579346930941243534
 

About us

  • What’s Best Forum is THE forum for high end audio, product reviews, advice and sharing experiences on the best of everything else. This is THE place where audiophiles and audio companies discuss vintage, contemporary and new audio products, music servers, music streamers, computer audio, digital-to-analog converters, turntables, phono stages, cartridges, reel-to-reel tape machines, speakers, headphones and tube and solid-state amplification. Founded in 2010 What’s Best Forum invites intelligent and courteous people of all interests and backgrounds to describe and discuss the best of everything. From beginners to life-long hobbyists to industry professionals, we enjoy learning about new things and meeting new people, and participating in spirited debates.

Quick Navigation

User Menu

Steve Williams
Site Founder | Site Owner | Administrator
Ron Resnick
Site Co-Owner | Administrator
Julian (The Fixer)
Website Build | Marketing Managersing