Category Archives: iPhone 5c

Apple Commanded 42% of Global LTE Handset Market in Q1 2014

According to a report by market research company Counterpoint, global shipments of LTE smartphones grew 91% year-on-year in the first quarter of 2014, with Apple’s iPhone commanding a 42% lead over all other smartphones in the market.

Source: Counterpoint
Source: Counterpoint

- LTE smartphones reached its highest ever first quarter shipments contributing to more than a fourth of the total smartphones shipments globally in Q1 2014
- Apple was the leading LTE smartphone with 42% share inspite of its narrow portfolio leveraging its wider distribution reach and huge share in premium smartphone market

The report notes that Apple and Samsung’s higher market shares were attributable to “stronger performance” in key LTE markets such as the United States, Canada and Korea. USA, in particular, accounted for one-third of all LTE smartphones shipped globally in Q1.

However, Counterpoint expects Chinese OEMs such as Huawei and ZTE to significantly improve on their market share in the near future with the introduction of new LTE-enabled “sub-1000 yuan phones”. These brands are already among the top five fastest-growing smartphone brands in the market, the report notes.

Back in April, market research company Kantar released a report claiming that Apple had performed strongly in the first quarter, primarily due to strong sales of its iPhone 5s in Europe, Japan and Australia. However, the company’s largest growth in market share reportedly came from Japan, where the company had inked a deal with the country’s largest carrier, NTT Docomo, to offer the iPhone.

Consumers Holding Back on iPhone Purchases as New Models Loom

A survey by investment firm Piper Jaffray reveals that one-third of consumers in the United States plan to buy a new iPhone in the next three months. According to the results, 29% of consumers have expressed interest in purchasing an iPhone 5s, while 5% have opted for an iPhone 5c. The figures represent a steady decline from the past few quarters as consumers are presumably holding back purchases while waiting for new models to arrive.

iphone 5c

The aggregated percentage of 34% represents a 16% decline from last October when both models of the iPhone were launched, which is expected as users are presumably waiting for new models to be released in the coming months. According to numerous reports that have been making the rounds on the internet, Apple is said to be launching its next-generation iPhone in the third quarter of the year.

Source: Piper Jaffray (via Appleinsider)

“While our survey is U.S. focused, we believe the data suggests that the iPhone, particularly the highest-end 5s model, continues to have staying power given about a third of U.S. smartphone customers expect to purchase an iPhone in the next three months,” Munster said.

As seen from the above table, consumer purchase intent for the iPhone trails that of Android by 20%, but the investment firm remains bullish about Apple’s prospects given the iPhone’s continued strong international sales.

Apple’s upcoming ‘iPhone 6′ is rumoured to be launching in two sizes – 4.7-inch and 5.5-inch – this fall. Recent reports have indicated a thinner profile and upgraded processors and cameras for the new models, along with NFC integration for mobile payments.

Apple To Launch 8GB iPhone 5c In India By Early June

Last week, it was reported that Apple had reversed its decision to sell the iPhone 4 in India, shortly after introducing it in the market at the start of the year. Today, a Times of India report claims that Apple will launch the 8GB model of its iPhone 5c in the Indian market by early June, presumably as a replacement for the iPhone 4.

iphone5c

The company introduced the 8GB version of the iPhone 5c in March this year, but restricted the launch to selected markets including Australia, China and the UK. The model is not available on the local Apple Online Store here in Singapore.

According to the report, the model will be priced in the range of 35,000 Rs to 37,000 Rs (approximately S$750), with a buyback offer that would cut the price to 30,000 Rs. The introduction of the cheaper iPhone in the Indian market is part of a bid by Apple to wrestle market share from rivals Samsung and Sony, which currently dominate the lower-end market.

Apart from gaining market share, the latest move from Apple is also aimed at increasing its ASP in India, which is among the lowest due to the higher sales of entry-level models such as the iPhone 4 and 4S leading to a cascading effect on global financials.

The report notes that Apple’s market share in India was only 2.4% in the first quarter of the year, with rival Samsung commanding the largest chunk of market share at 38.9%.

Update on 23 May 2014: As predicted earlier, Apple has launched the iPhone 5c in India, according to a Times of India report. The company is offering the phone at Rs 33,500 (S$703) and is giving a free case worth Rs 2000 with every purchase for a limited time.

Apple Launches iPhone Upgrade Event At U.S. Retail Stores

As reported earlier this week by 9to5Mac, Apple has launched an in-store iPhone upgrade event at its U.S. retail stores. Under the program, Apple Store employees have been given instructions to offer higher trade-in values for customers holding on to older iPhone 4 or iPhone 4s models.

iphone5s

Apple is getting employees to check customers’ eligibility for an upgrade, inform them about the iPhone Reuse and Recycling program and push recently increased trade-in values for iPhone 4s and iPhone 4. Apple is now offering up to $99 for an iPhone 4 and $199 for an iPhone 4s. With that value put toward the purchase of a new iPhone 5s, Apple is promoting the deal as being able to upgrade to an iPhone 5s for as little as $0.

Earlier today, iLounge posted images of a memo that Apple sent out to its retail store employees informing them of the program and how they can promote the upgrades to potential customers.

In addition, Apple has started sending promotional emails to customers informing them of the event and how they can get up to US$199 in credit when they trade in their iPhone for an iPhone 5s or iPhone 5c.

A sample of a promotional email sent to customers via 9to5Mac
A sample of a promotional email sent to customers via 9to5Mac

It is unclear, however, whether customers would be enticed by the upgrade offer, given that rumours of an imminent launch of the next-generation iPhone have been circulating on the Internet in recent months.

According to the rumour mill, Apple is said to be launching its next-generation iPhone in the second half of the year. Unlike previous generations, the ‘iPhone 6′ is heavily rumoured to be coming in two sizes – 4.7-inch and 5.5-inch.

Earlier reports had indicated a September launch for the 4.7-inch model and a delayed Q4 launch for the 5.5-inch model. However, a report by Reuters yesterday, citing Taiwanese media reports, claims that the 4.7-inch model will be launched in August instead, with the 5.5-inch model following shortly after in September.

iPhone Sales Jump 17% Year-on-Year For Second Fiscal Quarter

iPhone sales hit 43.7 million during Apple’s second fiscal quarter, beating the analyst consensus estimate of 38.2 million by a whopping 14%. The figure also represents a 17% year-on-year increase from Q2 2013.

iphone 5s

“We’re very proud of our quarterly results, especially our strong iPhone sales and record revenue from services,” said Tim Cook, Apple’s CEO. “We’re eagerly looking forward to introducing more new products and services that only Apple could bring to market.”

Apple’s newly-appointed CFO Luca Maestri noted during the company’s earnings call that sales for all three iPhone models (5s, 5c and 4s) were at all-time highs. Majority of sales were driven by developing markets. As noted by Appleinsider, sales of the iPhone 4s in the Greater China market played a significant role in the company’s impressive sales numbers.

Maestri noted that China Mobile, the world’s largest cellular carrier by subscribership, was especially helpful in the low end. Greater China sales of the iPhone 4S hit an all time high in quarter two as the halo iPhone 5s helped attract new customers. In Japan, Cook pointed out that iPhone now has a 55 percent marketshare.

Both India and Vietnam, two burgeoning markets, doubled overall iPhone sales, while Brazil, Poland, Turkey and others saw double-digit growth year-over-year. Cook said BRIC countries (Brazil, Russia, India and China) clocked in with best-ever sales, illustrating the iPhone’s growth potential in key developing regions.

Apple is rumoured to be launching the next-generation model of its iPhone in the second half of the year, with several reports pointing to two screen sizes for the device – 4.7-inch and 5.5-inch.

Internal Samsung Document Reveals That “Beating Apple is #1 Priority”

Yesterday, we reported that internal Apple documents released during last week’s ongoing Apple vs. Samsung trial revealed a growing concern within the Company that it was losing market share to phones with larger screen sizes than the iPhone. Today, Appleinsider and Re/Code have released new documents from the trial, this time detailing Samsung’s deep-seeded concern with regard to competition from Apple.

Taken from 9to5Mac.

The slide-deck appears to be from an internal Samsung presentation and is titled “2011 Summary & Lessons Learned; 2012 Business Forecast”.

The deck lists high-level initiatives for the company, the most glaring of which states that “beating Apple is #1 priority” and that “everything must be in the context of beating Apple”.

The slide goes on to state that the “threat from Apple is extremely real and urgent” and even lists predictions for Apple’s iPhone 5 features and projected sales.

The company then details its plans to strengthen the branding of its Galaxy range of smartphones and work with carriers to reach out to even more consumers.

Screen Shot 2014-04-08 at 12.22.33 am

While the intense rivalry between Apple and Samsung isn’t exactly news, this week’s trial has certainly given us an interesting insight into the internal discussions of both companies. According to Re/Code, the trial is expected to last a month, with court sessions scheduled for Mondays, Tuesdays and Fridays.

Internal Apple Documents Express Concern Over Declining Growth of iPhone

Several internal Apple documents have been released this past week as part of Apple’s ongoing trial with Samsung, with our report yesterday focusing on former Apple CEO Steve Jobs’ 2010 ambitions for an “Apple TV 2″. Today, Re/Code has released a new set of documents, one of which contains presentation slides for an Apple FY’14 planning meeting.

Apple’s latest smartphone models – the iPhone 5s (left) and iPhone 5c (right).

The slides, dated April 2013, paint a grim picture of growth rates for the iPhone, with one slide showing a year-on-year decline in unit growth. According to the slide, the growth rate for the iPhone declined from 107% in FY’09 to just 8% in FY’13.

The documents attribute the falling growth rate to three factors: 1) consumers wanting less expensive and larger screen-size smartphones, 2) carriers capping iPhone sales partly due to the high subsidies payable for each device and; 3) competitors ramping up their products, ecosystems and advertising to gain traction in the market.

The slides are a stark contrast to Apple’s product presentations, which typically paint a rosy picture of the overall future of the iPhone.

In one of the slides titled “Consumers Want What We Don’t Have”, it is shown that the smartphone market grew by 228 million units between 2011 and 2012, but majority of the growth came from phones costing less than US$300 and also phones costing more than US$300 but with screens that are larger than 4-inches, effectively excluding the iPhone.

In another set of documents containing email correspondence between Apple Senior Vice President of Worldwide Marketing Phil Schiller and a representative from Apple’s advertising agency, Media Arts Lab, Schiller praises Samsung’s pre-Superbowl advertisement, stating that he “can’t help but think these guys are feeling it while we struggle to nail a compelling brief on the iPhone”. He adds that “that’s sad because we have much better products”.

Apple is rumoured to be releasing two new models of the iPhone this year, one with a 4.7-inch display and another with a 5.5-inch display. The last update to the iPhone was in September 2013, with significant improvements including a fingerprint sensor and an upgraded processor, but Apple stopped short of increasing the screen size of the phone from 4-inches.

iPhone Market Share Now at 70% in Japan: Apple VP

Japanese TV programme TV Tokyo has published a short interview with Apple’s Vice President of Worldwide iPhone and iPad Product Marketing Greg Joswiak, as first spotted by Makotakara and 9to5Mac.

The interview is only 51 seconds long and in it, Joswiak speaks of the iPhone’s increasing market share in Japan, hitting approximately 70% currently. He attributes the spike to Apple’s unrelenting goal of creating great products and also the Japanese consumer’s focus on quality over cost.

When asked about the upcoming iPhone 6, Joswiak declines to give any comments, which is not unexpected given Apple’s well-known culture of secrecy.

Last September, Apple teamed up with Japan’s largest carrier, NTT Docomo to offer the iPhone to consumers in Japan.

Watch the interview here:

Apple to Shift to Automated Production Lines for iPhone Batteries

According to a report from Taiwan-based Digitimes, Apple is looking to move to automated production lines for iPhone batteries beginning this year.

The US-based tech giant is currently heavily-reliant on manpower from China for its production needs, but is looking to shift to automated production in the face of rising labour costs owing to shortage of manpower and high turnover rates, the report states.

“Apple has already automated its Mac Pro and iMac production lines. Other than materials and final assembly, manpower is not required for the rest of the manufacturing.”

However, it is unlikely that Apple would shift its manufacturing outside of China in the short-term, given that most of its supply partners are still located in the Mainland.

Apple is rumored to be launching its upcoming iPhone 6 in the second half of the year, and if the report is to be believed, the move might help to reduce production defects with the new iPhone, a significant issue which plagued the launch of the previous iPhone 5.

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