The latest market share figures from ComScore do not show any big movements at the top of the league tables (reports GSM Arena). Apple’s iPhone is still the most popular smartphone (with 41.9% of smartphone users sporting an iPhone) with Samsung in second place (on 27.8%). In terms of OS share, Android is leading, with a combined share of 52.1% of the US market, compared to iOS’ 41.9%. But what has to be extremely troubling for Samsung and is also a fact that analysts largely ignore is the fact that most of those Samsung phones sold out of their 27.8% are not their premium phones like the Galaxy S5 or the Note 3. They are the cheap phones often sold at or below actual cost with offerers. The fact that Samsung introduced their BOGO (buy one get one free) offer on the S5 not long after it was introduced proves just how desperate Samsung is to try and chip away at Apple’s dominance in the U.S. market.
Whenever I have asked friends that own Android friends why they chose their phones their inevitable reply was they wanted the larger display. If you only went by android comments off the internet you would expect to hear such things as the ability to customize, the ability to root, open source, or simply a hatred of Apple. But at least in my experience that is not the case, it was simply a matter of wanting a larger display. That I understand. I own an iPhone 5s but have at times wished the screen were larger. The one single safe bastion Samsung had to protect their dwindling market share is about to erode once Apple releases the iPhone 6 with a 4.7″ display. If one of the main reasons people chose a big Android phone was simply a large screen they are in big trouble. There is an additional possibility of a 5.5″ second iPhone model but that one seems a bit more iffy and unlikely.
Why a Large Screen iPhone will Destroy Android
Perhaps destroy is too strong of a word since people will still use those dirt cheap throw away Android phones that are largely used as flip phone replacements and no doubt the analysts will continue to look at that number and completely miss the big picture. You see Android is not a product, it is not sold. It is given away. Samsung competes with LG and HTC for customers just like they do against Apple. So it is really pathetic when people try and lump every single Android phone sold together regardless of price or the Android version it is running against the iPhone. The only figures that should matter are direct comparisons like the S5 and Note 3 vs. iPhone 5s and 5c sales. Neither Samsung nor LG or HTC are making any money off of their cheaper phones. And what little profit they make is likely about to get much smaller as the Chinese companies that you haven’t heard of yet but will in a few years slowly but steadily steal all their market share a the bottom end. Poor Microsoft with 3.4″ and Blackberry at 2.3% are now largely irrelevant. Do you remember what nearly all analysts predicted only a few short years ago about the new Windows phone displacing Apple and becoming #2 behind Android by now?
Apple Hires More Senior Staff Who Know How To Sell Watches
Following last week’s news that Alex Hsieh (the former lead engineer of Atlas Wearables) had taken a new role at Cupertino, Patrick Pruniaux has joined Apple from Tag Heuer (reports Reuters) in another staffing move that points to Apple bulking up on staff with experience related to wearable computing and accessories. Having worked for Tag Heuer for seven yeas, Pruniaux will leave the LVMH subsidiary on Monday.
The iPhone 6 with huge pent-up demand by current iPhone owners that have been waiting patiently along with possibly 50& of large screen Android phone owners switching to the phone they really want is just the beginning. The iWatch will likely be a huge hit as well but the Apple TV will probably begin to morph into what we have been expecting within the year. It will likely have an iOS app store and will appeal to casual gamers. Then there is the iOS in the home and car initiatives which can provide tremendous and nearly unlimited growth. Smart homes and smart cars are the future and consumers trust Apple far more than Google with their privacy violations and strong reliance on ads. Imagine opening your smart fridge and it is trying to push a brand of butter to you with an ad. No thanks. Android has largely become similar to Windows with the prevalence of malware. APPL will likely hit $115 a share by the end of this year once a few of these products are introduced.