iPhone X Will Help Apple Beat Samsung in Q4: Report
Apple Inc. (AAPL) is set to overtake Samsung Electronics Co Ltd. (SSNLF) as the world’s largest smartphone maker in the fourth quarter thanks to robust demand for the Cupertino, California-based company’s new iPhone X, market research firm TrendForce has predicted.
The Taiwanese film estimated that Apple will grab 19.1 percent market share in the coming months, up from 11.5 percent in the third quarter. Apple’s release of the iPhone X, together with widespread availability of the iPhone 8, iPhone 8 Plus and discounted iPhone SE, is expected to play a key role in helping Apple to dethrone Samsung during the all-important holiday shopping season.
TrendForce predicted that Apple will reach 81 million units in the quarter, with the iPhone X taking up a third of sales. In contrast, Samsung’s shipments are estimated to fall 5 percent in the same period to 77 million units, bringing the South Korean giant’s market share down to 18.2 percent. Trendforce cites competition from the iPhone X, a lack of new smartphone launches and setbacks in China as key contributors toward Samsung’s anticipated fourth quarter decline. (See also: Why Samsung Stands to Gain If iPhone X Is a Hit.)
“Samsung is expected to slightly scale back the production of its high-end models in the fourth quarter as the brand is seeing the sales of its smartphones being squeezed by the strong demand for Apple's latest iPhone devices,” the market research firm said. “TrendForce estimates that Samsung's fourth-quarter total volume will come to 77 million units, a 5 percent drop from the third quarter.”
After Apple and Samsung, Chinese companies Huawei, OPPO and Xiaomi are predicted to be the largest smartphone players in the fourth quarter.
At first glance, Apple’s anticipated fourth quarter beating of Samsung represents quite an achievement for the company and the higher-end smartphone market in which it specializes. However, it also worth noting that Apple often beats its South Korean rival in the final months of year because it tends to launch new smartphones in the fall.
In the first three quarters of the year, Samsung, boosted by its own smartphone launches, comfortably beat Apple for market share. When the South Korean giant releases the new Galaxy S9 in early 2018, the balance could once again be tipped back in Samsung’s favor. (See also: Why Samsung's Stock Will Outshine Apple.)
iPhone 7 Bestselling Smartphone in Q3
Data from Canalys found that older smartphones were the bestsellers in the third quarter. According to the market research firm, Apple’s iPhone 7 shipped 13 million units in the period. In second place was the iPhone 6s with 7.9 million shipments, closely followed by Samsung’s Galaxy J2 Prime with 7.8 million shipments.
“Shipments of older devices, such as the iPhone 6s and SE, saw an uptick in Q3,” said Canalys researcher Ben Stanton. “The iPhone 7 also shipped strongly after its price cut in September. Apple grew in Q3, but it was these older, cheaper models that propped up total iPhone shipments. Apple is clearly making a portfolio play here. With the launch of the iPhone X, it now has five tiers of iPhone and delivers iOS at more price bands than ever before. This is a new strategy for Apple. It is aggressively defending its market share, but it will not compromise its rigid margin structure to do so.”
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