Apple Losing Share as Global Smartphone Sales Top Feature Phone Sales for First Time

Photo of Paul Ausick
By Paul Ausick Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Galaxy S4
courtesy of Samsung
Global mobile phone sales totaled 435 million units in the second quarter of 2013, and of that total, some 225 million units, or 51.8%, were smartphones. That is the first time that smartphone sales have ever surpassed sales of feature phones, according to research firm Gartner Inc. (NYSE: IT).

By smartphone handset manufacturer, Samsung Electronics extended its market share lead to 31.7% of the global market, up from 29.7% a year ago, while Apple Inc. (NASDAQ: AAPL) saw its handset share shrink to 14.2%, down from 18.8% in the second quarter a year ago.

Smartphone sales grew fastest in the Asia/Pacific region, up 74.1%, followed by an increase of 55.7% in Latin America and 31.6% in Eastern Europe.

The Android operating system from Google Inc. (NASDAQ: GOOG) now claims 79% of the global platform market, up from about 64% a year ago. Apple’s share of the platform market dipped from 18.8% to 14.2%, as with the company’s handsets.

Microsoft Corp. (NASDAQ: MSFT) gained platform share, growing from 2.6% a year ago to 3.3% this year. BlackBerry Ltd. (NASDAQ: BBRY) lost nearly half its market share, dropping from 5.2% a year ago to 2.7%.

On the basis of total sales of smartphones plus feature phones, Samsung boosted its market share from 21.5% a year ago to 24.7% this year. Nokia Corp. (NYSE: NOK) saw its share drop from 19.9% to 14.0%, and Apple’s share grew from 6.9% to 7.3%.

Some observations:

  1. Apple’s declining share of the smartphone market was accompanied by a drop in the average selling price (ASP) in the iPhone 5. The company’s latest model is expected to be launched next month, and that will boost sales through the remainder of this year, but eroding ASPs are not a good thing for Apple.
  2. Microsoft’s Windows Phone platform grabbed a larger market share than BlackBerry 10. If more evidence were needed that BlackBerry is fading and that nothing short of a miracle will save it, here it is.
  3. Nokia is not among the top five sellers of smartphone handsets, and feature phone sales are disappearing as smartphones come down in price. Competition from Chinese phone makers like ZTE and Huawei promise further to erode Nokia sales, especially in developing countries.
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618