Apple Losing its Market Dominance at all Angles
As shown by different research companies in Q1 2014, Apple (AAPL) is gradually losing its target audience to rival firms that are using the Android platform,. The company shipped 43.7 million units of iPhone and16.4 million units of iPad during the first quarter. According to research firm IDC, iPhone and iPad both shed more market shares they held a year earlier.
Elsewhere, another research company, Opera Mediaworks, has revealed that iOS is no longer the leading platform in terms of the size of the audience. According to the data, the number Android users who interact with mobile ads outnumber their iOS counterparts.
iPhone Shipment Increase but Apple Sheds Market Share
iPhone saw double digit sales growth in Japan and multiple developing markets such China, Brazil, Indonesia and India. Though Apple’s Smartphone market share dropped to 15.5% in Q1 2014, it is the first time the company has shipped 43.7 million units in a quarter.
Apple trails Samsung Electronics Co. (005930), which is still enjoying the top spot, thanks to its competitive pricing and the increasing capacity of the Google Play app store. The latter now controls 30.2% of the market, down from the 31.7% it had a year earlier. However, this figure compares well with the last quarter’s 28.8%. During the Q1 2014 quarter, the company shipped 85 million Smartphone units, up from 69.7 million in Q1 2013.
Since both Apple and Samsung market share dropped, but their respective shipment increased, it is obvious that other industry players are eating into their market shares.
Samsung threatens Apple’s Tablet Market Dominance
While Apple is still the dominant brand in the tablet world, Samsung is working hard to dethrone it. The Q1 2014 results showed that iPad sales dropped to less than a third of all the tablets sold in that period. In Q1 2013, the company had more than 40 percent of the tablet market in its grip. Only Samsung made substantial gains in the global tablet market, rising from 17.5 percent a year earlier, to 22.3 percent in Q1 2014. This represents tablet shipments which rose from 8.5 millions to 11.2 million units. So while Apple’s CEO Tim Cook still believes iPad has a great future, the company needs to worry more about Samsung, which is literally poaching its customers.
Apple is not just losing its tablet market; almost all its businesses are under pressure. Until recently, Apple’s iOS was the leading operating system for mobile advertisers since it delivered not only the quality and a glossier platform with deeper engagement, but also a large target audience. Of all these four primary factors, the Google’s Android platform is now at par with iOS on two and has surpassed it in one.
According to Opera Mediaworks data, the traffic that resulted from 64 billion ads supplied to 500 million Smartphone and tablet users, 42.83% are Android users and 38.17% are from iOS. This was previously 31.26% and 44.53% respectively. However, on monetization of these users, iOS still leading with 52.7%, up from the previous 49.23%; Android on the other hand stands at 33.46, up from the previous 26.72%.
Google’s Android platform is an open source used by numerous developers, but iOS is only available to Apple. The number of developers at Apple cannot outwit the thousands of developers working on the Android platform. This is why the Apple’s Smartphone and tablet mark has been gradually dropping down. While iOS is losing ground to Android, Apple still pockets the lion’s share of the revenues from advertisement, because it is going it alone as a technological giant in the Smartphone and tablet arena.