Expectations for iPhone’s market share
According to IDC, Google’s Android (GOOG) (GOOGL) phone shipments are expected to rise by 6.2% YoY (year-over-year) in 2016 to ~1.2 billion shipments. Currently, Android dominates the smartphone market with an 83.7% share, followed by Apple’s (AAPL) iOS at 15.3% and Windows (MSFT) at 0.8%.
IDC stated that Apple “continues to make inroads in China with development in Tier 1 cities and is actively trying to penetrate higher growth markets like India and Middle East. The larger screen iPhone 6 Plus and 6S Plus will continue to grow its share of all iPhones shipped, increasing from 26% in 2016 to 32% in 2020.”
iPhone revenues fell in fiscal 2Q16
Apple’s (AAPL) iPhone revenues fell by 18% YoY to $32.9 billion in fiscal 2Q16 from $40.3 billion in fiscal 2Q15. iPhone unit shipments also fell by 16% YoY to 51.2 million units from 61.2 million units during the same period.
But slowing iPhone sales also reflect a slowdown in the global smartphone market. Apple has struggled to maintain the exponential growth it experienced in the last few years in its flagship business segment. Fiscal 2016 has also been an “S” year for the iPhone, so this has generated limited consumer interest.
In the next part, we’ll discuss Apple’s performance in China in greater detail.