Change of reign in sight in the land of smartphones? Thanks to the iPhone 15 that it will reveal this Tuesday, September 12, Apple could steal the crown from the giant Samsung this year. Office Counterpoint Research believes that Tim Cook’s firm is well positioned to deliver more devices to distributors than its Korean rival. If Apple succeeds, it would be a great feat in a very gloomy market. Global smartphone shipments are expected to reach their lowest level in ten years this year.
“The rapid growth phase of the market is now far behind us. The frequency of product replacement is reducing,” notes Jan Stryjak, associate director in charge of the Europe zone at Counterpoint Research. Experts from TechInsights are more reserved about Apple’s victory: the crown will remain with Samsung, at least this year according to them. “The race is tightening,” however, observes Neil Mawston, executive director and Smartphone market expert within the firm.
In either case, market developments prove Apple right. While the firm caused discontent when it raised its iPhones to the very symbolic mark of 1000 euros, its price scales no longer move many people today. Never mind that many customers only partially use the powerful capabilities of these phones. Never mind the existence of completely honorable alternatives at radically lower prices. The consistency of the Apple firm’s offering (a quality product, reliable, aesthetic and very easy to use) has convinced the masses to break the bank.
The iPhone, king of refurbished smartphones
The competition has also followed suit, and has long no longer hesitated to display such high prices. They would be wrong to deprive themselves of it. “While entry-level and mid-range devices are hit hard by declining demand, the premium device segment above $600 continues to grow […] and Apple is riding this market wave towards premium devices,” points out Jan Stryjak of Counterpoint Research. The group must, however, navigate two crest lines.
The first: the boom in reconditioned devices, these second-hand phones that are cleaned, checked and repackaged before resale. A trend that should benefit Apple, because it is the most popular brand in this market. The Apple firm has already put in place several measures on this subject, such as the repurchase of old models to finance the purchase of more recent versions. She could win big by developing them even further. But there is a delicate balance to find so as not to jeopardize sales of new products.
“Apple is well placed to take more control over this flow of second-hand devices. If it really wants to make a breakthrough in the field, it could even set up a subscription system which would give it great visibility on the flow of product returns,” argues Ben Wood of CCS Insight in a post.
Apple’s two other challenges in the smartphone market are “India and China”, says Neil Mawston without hesitation: “Apple must develop its presence in India, the most populous country in the world, while maintaining its position in China”. A narrow and winding road at a time when the technological war between Washington and Beijing is intensifying. While the United States is restricting China’s access to the most sophisticated chips and has placed TikTok in its sights, China has just responded by excluding iPhones from administrations and state companies. A tense climate not conducive to Apple business.