Apple crushes the smartphone market ... but it's a half-hearted triumph

The iPhone X is a success and Apple dominated the smartphone market early this year, chasing competition far from the podium. However, this domination is accompanied by a kind of breathlessness.

Until last Tuesday, the iPhone X was a smartphone in suspension, a walking failure. Analysts promised him a thousand deaths, a thousand descent into hell. The slow agony of the failed product that was expected in the firmament.

Then Apple announced its financial results and the flop became a beast of competition, a market killer, the dominant alpha. According to Apple, it has been flying over the weekly sales of the entire first quarter of 2018. Better, it is not only the best-selling iPhone ... but also the best-selling smartphone.

King of the world

The superiority over his brothers 8 and 8 Plus was explained quite simply for simple reasons of design and technology, despite a very high price. But it's not just the other iPhone that the X crushes, it's the whole market. Moreover, all the iPhone are essential and clear place.

According to Strategy Analytics, the top four places in the global bestseller rankings are occupied respectively by iPhone X, iPhone 8, iPhone 8 Plus and ... the iPhone 7, released last year.

The first Samsung smartphone, the Galaxy S9 Plus, slips into sixth place only, behind the Xiaomi Redmi 5A. The success of Apple is not only the success of a device, it is that of a range.

Are two iPhone better than three?

Nevertheless, behind this overwhelming omnipresence lies the shadow of a doubt. With 16 million units sold in one quarter, the iPhone X dominates, followed closely by the 12.5 million iPhone 8. The iPhone 8 Plus, bulky with its dated design, reaches 8.3 million units sold in three months. Still more than the Xiaomi and its 5.4 million units or the S9 Plus and its 5.3 million. Together, they account for 36.8 million smartphones. Good performance? Not necessarily.

Because last year for the same period, the iPhone 7 and iPhone 7 Plus accounted for a volume of 38.9 million units. The iPhone 7, alone, had sold 21.5 million units, the 7 Plus was also not left, with 17.4 million. Two results superior to those of the iPhone X.

Despite this, comparing the second fiscal quarter of 2018 (January to March) to its equivalent in 2017, we see an increase of about 3% in the number of iPhone sold. A flattering progression compared to the two previous years which marked a decline. But we are far from almost 40% growth between the second fiscal quarters 2014 and 2015. We must recognize that this quarter of 2015 remains the best second quarter in the history of the iPhone.

This rebound in the form of breathlessness is also part of the time when Apple offers a richer range (8 models in 2018 against 5 in 2017), with prices spread over a wider range (from 419 to 1329 euros in 2018 against 489 to 1129 euros last year). What, a priori, seduce more people or offset a trend decline ...

The best ... but is it enough?

Apple is the king with the iPhone X. However, it could have pulled too much on the price string. How else to explain that sales are not as good as on the previous generation for the same period? By the fact that the market is declining elsewhere? Hard to be satisfied.

Apple does not seem to care. Comparing his new smartphone star to a team that has just won the Super Bowl, Tim Cook said, "I think this is one of those situations where a team wins the Super Bowl. Maybe you would have liked her to win with more points, but it's still the winner of the Super Bowl. That's how we see things. "

IPhone X won the battle. But it only grew by 2.86% year-on-year in terms of volume. In contrast, in terms of income, the increase is 14.39%. That's what seems to look at Apple, ultimately.

It's hard not to feel that Apple missed the mark. Beyond the (debatable) promise that the iPhone X defines the smartphone of the next ten years, it has failed to make its flagship weapon to generate a new cycle of hyper-growth. As if the policy of small iterative hops had just encountered a first wall, the price.

Source:
Strategy Analytics

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