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Industry Analysis

Industry Analysis. Gadgets – The Smartphone Age. I love them ! Nielson estimates 64% of the US population now owns a smartphone and 80% of the recent phone purchase has been a smartphone iPhone G lobal market share Talk about its competitors What can Apple do to increase market share?.

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Industry Analysis

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  1. Industry Analysis

  2. Gadgets – The Smartphone Age • I love them! • Nielson estimates 64% of the US population now owns a smartphone and 80% of the recent phone purchase has been a smartphone • iPhone • Global market share • Talk about its competitors • What can Apple do to increase market share?

  3. iPhone’s Global Market share • What is the iPhone’s global market share? • 14% • What is Android’s? • 80% as of 2013 • Up from 53% in Q1 2011 (iOS was 28%)

  4. iPhone’s Global Market Share • Has the iPhone sales dropped?

  5. The Competition vs iPhone • Two different product philosophies • iOS – closed, controlled, optimal experience that Apple wants you to have • Android – Open, Unrestricted – 3rd party developers are free to improve the experience as they see fit

  6. The Competition - Android • Android Manufacturers are free to release new products as a market tester • eg. Bigger phones, water-resistant phones, phones with IR blasters

  7. iPhones • Premium device, boasts intuitive design • One device per year (except for 5C) • Older devices serve as the Entry level devices when new one comes out

  8. Emerging Markets & Europe • Apple has fallen significantly in market shares in emerging markets • People in India with GDP per Capita of $1,400 cannot afford a phone that is priced $700. • Europe market share fell to 20% where Android sored to 69%

  9. Apple’s answer • iPhone 5C • “Unapologetically plastic” – JonyIve • Cheaper to manufacture • More competitive price point • $549 still too much for unsubsidized emerging market (5C not doing so well)

  10. Possible solution • May be too risky to change philosophy • Premium phone for less price • Partially subsidized (or loss leader) strategy • Google Nexus 4 • Premium spec • $299 unlocked • $29 on contract • Price subsidized by Google

  11. Possible solution • New segmentation • 9 Million (possibly 5.5 million) iPhone 5S and 5C sold on first 3 days • Proved that there is still a big market for a smaller one-handed premium device • 30 Million Galaxy Note 2 sold • Develop a new bigger device with the same premium design

  12. Conclusion • Global market share may have fallen significantly but revenue still up • Samsung, Sony, HTC and LG creating new markets for themselves • Adapt to new market demands • No matter who wins, we win!

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