Apple iPhone profits and share slide again as Samsung sales rise

LG, Lenovo, ZTE nipping at iPhone's heels.

What would Steve Jobs do?

Apple (NASDAQ:AAPL) needs new iPhones, fast, say analysts. Its competition is squeezing from both sides. Although the smartphone market continues to grow, Apple isn't seeing the benefit: A rising tide doesn't seem to be floating Cupertino's boat.

In IT Blogwatch, bloggers cut through the boring numbers.

Your humble blogwatcher curated these bloggy bits for your entertainment.

Jay Alabaster compares Samsung and Apple marketshare statements:

Samsung Electronics said sales and profits soared in the second quarter...up 50 percent from a year earlier. Sales were up 21 percent. ...strong quarterly gains in every division except its core mobile business [where] increased marketing costs and competition hurt its profitability...even as its sales increased.


Apple said profits were down 22 percent during the the company did not have a major product launch. [But] Tim Cook said new products will be released later this year.  MORE

Wait. iPhone profit down 22%? Ouch! Strategy Analytics’ Neil Mawston and Neil Shah talked to Ina Fried:

The current iPhone portfolio is under-performing and Apple is at risk of being trapped in a pincer movement between rival 3-inch Android models at the low-end and 5-inch Android models at the high-end.


The smartphone industry’s shipment growth rate, which is higher today than a year ago, is being driven by surging demand for 4G models in developed regions like the US and 3G models in emerging markets such as India.  MORE

John Ribeiro has the IDC view on the broader markets' sizes:

52.3 percent growth in the smartphone market with 238 million units shipped in the second quarter. ... Apple's sales could accelerate globally if it launches a lower-cost iPhone.


The worldwide mobile phone market grew 6 percent over 432 million units.  MORE

But "Kasper Jade" sounds stunned:

The amount of growth [in] the worldwide smartphone market was the five quarters. ...shipments were up 10 percent.


Samsung retained a dominant lead [with] 30.4 percent...on shipments of 72.4 million. ... Apple came in second with 31.2 million iPhones shipped...a 13.1 percent market share. [But] the two companies' year-over-year growth rates trailed the market average. ... Coming in third was LG, which shipped 12.1 million units to take 5.1 percent of the market, up 108.6 percent. ... Lenovo, which showed the most growth with a 130.6 percent year-to-year jump, managed 11.6 million units for a 4.7 market share. Finally, ZTE [has] 4.2 percent of the market on 10.1 million units shipped, up 57.8 percent.  MORE

Had enough numbers? Tatasha Lomas seems to yell, "No mas!":

More proof, if proof were needed, that Apple needs a low cost iPhone. ... Neil Mawston...agrees that is a requirement for Apple to drive extra volume. [But] Cupertino’s top priority should be a new type of flagship to compete with Samsung’s phablets, he said.


“Apple’s first priority should be a premium-tier phablet with a 5-inch screen. ... Apple is losing profit share to Samsung partly because of a lack of presence in the phablet segment. Apple’s second priority should be a lower-cost iPhone to win back some of the customers it is losing to cheaper Android models. ... A 5-inch iPhone would generate extra value for Apple, while a cheaper iPhone would deliver extra volume.”  MORE

Computerworld Blogs Newsletter

Subscribe now to the Blogs Newsletter for a daily summary of the most recent and relevant blog posts at Computerworld.  

Shop Tech Products at Amazon