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Has iPhone X taken a big bite out of Apple?

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Sushant Talwar
Sushant TalwarDec 06, 2017 | 17:18

Has iPhone X taken a big bite out of Apple?

When Apple unveiled the iPhone X on September 13, it did so with the knowledge that the "futuristic" device announced to celebrate the tenth anniversary of the first iPhone could reinvigorate the fortunes of the company. Placing all its bets on the iPhone X, the tech giant announced the phone will launch at a higher price and a date later than that of the iPhone 8 and 8 Plus. 

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Looks like the gamble didn't pay off. 

According to a report by research firm Kantar WorldpanelApple lost a good chunk of share in eight major smartphone markets around the globe during the period August-October 2017 as it worked to get its stocks ready for the grand entry of the iPhone X in early November. The report echoes numerous projections by analysts and industry experts who had earlier warned that Apple could lose market share if it waits too long before bringing the device to the market.

Data shows that Apple recorded a 7.6 per cent drop in market share for iOS in the United States as opposed to the numbers recorded last year during the same period. Similar trends were also seen in Great Britain where iOS dropped 8.5 per cent from 2016 and was followed by Japan (down 6.9 per cent), Germany (down 1.6), France (down 0.6), Italy (down 0.5), and Australia (down 0.2). 

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The reason behind the drop

Apple launched the iPhone X in the beginning of November, instead of September when it launched the iPhone 8 and iPhone 8 Plus, and, according to Dominic Sunnebo, global business unit director for Kantar Worldpanel, it is this decision that hurt Apple's market share.

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“It was somewhat inevitable that Apple would see volume share fall once we had a full comparative month of sales taking into account the non-flagship iPhone 8 vs the flagship iPhone 7 from 2016... This decrease is significant and puts pressure on the iPhone X to perform. Considering the complete overhaul that the iPhone X offers, consumers may be postponing their purchase decisions until they can test the iPhone X and decide whether the higher price, compared to the iPhone 8, is worth the premium to them."

Apple's loss is Android's gain

The loss in market share for iOS, however, has come as good news for Google's Android operating system, which has benefited from Apple losing ground in the market. Android grew at 4.3 per cent in the big five European markets, 8.2 per cent in the US, and 7.5 per cent in Japan during the same period. 

But as pointed out by the research firm, Apple's decline is not all because of its decision to bring the iPhone X later than the other two iPhones but also because of the continued growth of Chinese brands such as Huawei, Xiaomi and Oppo, which gained in market share during the three-month period.

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Light at the end of the tunnel for Apple

But, even as Chinese smartphone manufacturers look to eat into Apple's share in its core markets, it's in China – the world's biggest smartphone market – where iOS is finally making some inroads as it grew at 0.5 per cent. Considering how Apple has been working hard to improve its share in the country, this will come as good news for the company. 

And as for Apple's declining share in US and major European markets, the next set of data could very well project a comeback for the company.

The iPhone X has been out for merely a month but already looks to be eclipsing the sales figures for the iPhone 8 and 8 Plus. A report from TrendForce pegs strong iPhone X demand to help push Apple ahead of Samsung in the fourth quarter of 2017 to become the world's largest smartphone maker.

Apple will desperately be looking for this projection to turn out right, otherwise, the iPhone X, with its price tag and delivery delays, could very well turn out to be a very expensive gamble for Apple, one it could take a lot of time to recover from. 

Last updated: December 06, 2017 | 17:40
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