Will Apple iPhone 7 Drive Revenue in Fiscal 1Q17?



iPhone dominates holiday sales

Holiday device activation numbers seem to suggest that the recent slide in Apple’s (AAPL) iPhone sales may be more about tough economic times hitting consumers than about consumers losing interest in iPhones.

According to Flurry, a Yahoo-owned mobile research company, 44% of mobile devices activated between December 19 and December 25 were Apple’s iPhones and iPads. Samsung (SSNLF) devices accounted for 21% of mobile activations in that period, while Huawei handsets accounted for 3%. Amazon (AMZN) and LG each accounted for 2% of mobile devices activated.

Apple handsets accounted for 49.1% of mobile activations during the same period in December 2015, while Samsung devices accounted for 19.8% of activations.

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Apple struggles in China

According to research company Kantar Worldpanel, Apple’s market share in the United States (SPY) rose 6.4% YoY (year-over-year) to 43.5% during the three-month period ended November 2016. Kantar stated that the recently launched iPhone 7, iPhone 7 Plus, and iPhone 6S were primarily driving US sales. Samsung, in second place, had a share of 28.9%, and the Google Pixel had a share of 1.3%. Alphabet’s (GOOG) Android saw its share fall from 60.4% in 2015 to 55.3% in 2016.

Apple’s share in China (FXI) has been declining due to increasing competition from domestic players such as Huawei, Xiaomi, and Oppo. Apple’s share in China fell from 25.3% to 19.9% during the three-month period ended November 2016.

“The holiday period is always strong for Apple, but it remains to be seen if demand for the latest devices will level out in the first quarter of 2017,” according to Kantar business unit director Dominic Sunnebo.


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