Newsletters
Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Computing Digital Life Discovery Space More Topics...
Advertisement
Free Gartner Report:
Drive innovation & collaboration
with the "Everyone's IT" approach.

View the research report
.
Apple/Mac
Average Rating:
Rate this article:  
Apple May Be Bumping Edge of Market, Analyst Says

Apple May Be Bumping Edge of Market, Analyst Says
By Adam Dickter

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

According to October numbers from ABI, South Korea's Samsung Electronics, now the world's leading handset maker, shipped twice as many smartphones as Apple in the third quarter, an increase of 20.7 percent year over year. Apple saw a bigger increase with its iPhone, 57.6 percent, but its handset total was 26.9 million compared with Samsung's 102.6 million.
 


Is Apple running out of new customers? That's an inescapable question as analysts estimate lower numbers for Apple's top-selling iPhone and iPad next year. Early indications also suggested Chinese consumers were largely shrugging their shoulders at the iPhone 5 launch, bad news for what was seen as a promising emerging market.

News reports that an analyst for UBS Investment Research lowered predictions of first-quarter iPhone sales to 48 million, down from 52 million and overall profit expectations two points to 40 percent caused Apple's stock price to drop, falling to 508.97, down 3.91 percent at closing Friday. UBS also saw the iPad mini cannibalizing sales of the more expensive iPad models.

iPhone Predictions Lower

ABI Research wireless industry analyst Mike Morgan told us he had already predicted lower volume for the iPhone, 39 million for the fourth quarter, 38 million for the first quarter of next year, 36 million for the second quarter and 33 million for the third quarter. His annual estimate for this year is 127 million, which will grow to 160 million iPhones next year.

"There is still growth but what we are seeing is the slowing of Apple's growth," Morgan told us.

"It needs to slow down and you can expect in 2013 to start to see that. Apple is starting to bump up against the edge of its addressable market. That's what happens when growth is no longer driven by opening new markets. It is now based on stealing market share from competitors, or on iPhone customers who upgrade. Whenever you move from growth to retention of growth it always slows down."

According to October numbers from ABI, South Korea's Samsung Electronics, now the world's leading handset maker, shipped twice as many smartphones as Apple in the third quarter, an increase of 20.7 percent year over year. Apple saw a bigger increase, 57.6 percent, but its total was 26.9 million compared with Samsung's 102.6 million.

Last month, Strategy Analytics said Samsung's flagship device, the Galaxy S III, outsold the iPhone 4S in the previous three months, although many customers were waiting for the iPhone 5, which will probably take the top spot in the next analysis.

But Morgan of ABI sees the market share of people who have been waiting to get their hands on an iPhone deteriorating.

"What's left is to spread to emerging markets where high-priced items are a very tough sell," he said. "I don't think they have that equation yet. The $150 Android phone isn't as good as the $600 iPhone [unsubsidized price], but it's good enough."

Not Different Enough?

The iPhone now accounts for about half of revenues for Cupertino, Calif.-based Apple, which once primarily sold computers. But Morgan notes that the refresh of a device in the past, the iPhone 4 over the 3GS for instance, generally became 90 percent of all iPhone shipments. "I'm starting to believe the iPhone 5 will not accomplish that."

One reason, he said, is that the 5 is compatible with long-term evolution data speeds, while not every area and not all carriers can accommodate that standard. Another is that the iPhone 5, though larger and faster, is not substantially different from its predecessor. Samsung tends to revolutionize its devices more between models.
 

Tell Us What You Think
Comment:

Name:

Ted:

Posted: 2012-12-16 @ 6:33am PT
Another manipulating the stock

JD:

Posted: 2012-12-16 @ 3:56am PT
Morgan of ABI? I've been following everything Apple, every day, for years, and I've never heard of him. Is he the guy who broke into Apple, Inc HQ in the middle of the night and saw their secret sales numbers?



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Apple/Mac
1.   Popular Mailbox App Comes to Mac
2.   Apple Opens China iCloud Data Center
3.   Android Crushing Smartphone Rivals
4.   Apple Bans Toxic Factory Chemicals
5.   Apple's Workforce Mostly White, Male


advertisement
New App To Manage Time Better
Helping to organize your busy life.
Average Rating:
Popular Mailbox App Comes to Mac
Takes to-do list approach to the inbox.
Average Rating:
Apple Bans Toxic Factory Chemicals
Cleans up China production of iPhones.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Chinese Hackers Nab Info on Millions of U.S. Patients
A group of Chinese hackers has stolen the personal information, including names and Social Security numbers, of about 4.5 million patients at hospitals operated by Community Health Systems.
 
Premier FBI Cybersquad in U.S. To Add Agents
After helping prosecutors charge Chinese army officials with stealing trade secrets from major companies and by snaring a Russian-led hacking ring, the premier FBI cyber-squad is getting a boost.
 
Apple Opens iCloud Data Center in China
Treading lightly, Apple acknowledged it has started to store encrypted iCloud personal data of some Chinese users on servers in mainland China, operated by the state-owned China Telecom.
 

Enterprise Hardware Spotlight
Compression, Deduplication Come to Violin Concerto 2200
Violin Memory has announced that data deduplication and compression capabilities are now available on its Concerto 2200 solution. Typically, users will experience deduplication rates between 6:1 and 10:1.
 
Cisco Axes 6,000 Employees in Restructuring Plan
Faced with declining profits, Cisco is laying off up to 6,000 employees in the months ahead -- a whopping 8 percent of its global workforce. That's in addition to the 4,000 jobs Cisco cut last year.
 
Web Slows, Have Internet Routers Reached The Limit?
If you encountered problems connecting to the Internet on August 12, you weren't alone. Networking experts blame the wide-scale slowdown on outdated routing systems that are reaching their limits.
 

Mobile Technology Spotlight
HTC Debuts Windows Phone Version of One M8 Smartphone
HTC is bringing the Windows Phone mobile OS to its flagship One M8 device -- the first time any mainstream flagship smartphone has been offered with a choice of operating systems.
 
RootMetrics Ranks Verizon Tops in Mobile Networks
Verizon Wireless is the top-performing cellphone service provider, according to a new report. In the first half of 2014, Verizon led on a nationwide and state-by-state basis -- and in metro areas.
 
Sprint Comes Out with Data Guns Blazing
As its new CEO promised, Sprint has rolled out a new aggressively competitive price plan. The shared data plans promise twice the high-speed data and at lower prices than AT&T and Verizon Wireless.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.