31/01/2017

Apple Taking Advantage of Faltering Samsung

According to KantarWorldPanel, the global insight and analytics giant, smartphone sales in the UK show a dramatic decline in Android handset sales leading up to the festive season. Both Android and Apple made slight gains but this was predicated on the decline of Microsoft’s Windows Phone sales.

Kantar, using data from Great Britain, France, Germany, Spain and Italy – the so-called EU5 – illustrated the dominance of Android with 72.4% of all sales relating to Android handsets. However, 24.6% is a rise year-on-year for Apple during the same period. The success of the iPhone 7 and 7plus along with the legacy 6 handsets all point towards a growing popularity. It should be noted that Samsung made the biggest decline and this was partially due to the brand-damaging Samsung Note battery debacle. The brand saw it lose premium sales to Apple during this season.

Android is experiencing an unusual phenomenon – insofar as Android has suffered the sixth consecutive period of decline in the US/EU5 whilst experiencing the same period of growth in China – the world’s biggest smartphone market. This dichotomy illustrates Google and the Open Handset Alliance’s focus. Apple’s failure to win big in China has seen it focus on legacy/traditional markets. However, China and the emerging BRICS nations play a pivotal role in global sales trends.

Gartner argues that 2017 will be a pivotal year in the smartphone industry. The shift from American dominance to Chinese will begin to set in and this will mean that Western brands will place more focus on the Eastern markets and vice versa Eastern brands will flood into Western markets – we are already seeing Huawei, OnePlus and other premium Chinese brands start to focus on the high-end marketplace.

However, smartphone sales, Gartner argues, in 2017 will decline as a peak consumer event will occur. The 3.3bn mobile phones in circulation in the Western world will begin to create an issue in terms of update/lifecycle awareness that manufacturers will begin to understand and will result in handset updates occurring less frequently than current trends. This will be a massive impact on the supply chain and wider sales channels within the smartphone sector.

These developments will create a new, more nuanced, sector that will see global brands battle for global market supremacy. What we saw in 2016 was the traditional markets being dominated by traditional platforms whilst emerging markets saw massive gains for local newer manufacturers. This change will be a paradigm shift in relation to smartphone retention and sales theories. The impact will herald a new epoch of smartphone ownership and brand loyalties.

However, as always with big changes the demand for used smartphones will grow as the grey market will continue to maintain strong yields on nearly new and older smartphone models. When you upgrade, you can still make money from your old handset. Why not visit CompareandRecycle.co.uk today to find out how much money you could make from selling your unwanted phones today – search from hundreds of recycling vendors and get the best quote for your device.

Andrew

Andrew

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