[NewsPoster]

The latest research data from Gartner shows Apple's first year-over-year decline in iPhone sales coincided with a reduced share of the global smartphone market. Although the global smartphone market grew by just 3.9 percent year-over-year, Apple was notable for going backwards. Although holding its position as the number two smartphone maker in the world, its market share slid from 17.9 percent to 14.9 percent. Whatever the exact cause of the decline, Gartner's data shows that Apple is not immune to the increasing rise of Chinese smartphone makers.


Like Apple, Samsung's market share also took a backward step, although it was not as sharp as Apple's. Samsung's share declined year-over-year by 0.9 percent to 23.2 percent, down from 24.1 percent. Chinese makers, however, generally enjoyed a promising quarter. Huawei was the biggest winner for the quarter, with an 8.3 percent market share, up from 5.4 percent, with Oppo also making a gain. It held a 4.6 percent share of the market for the March quarter, up from two percent during the same period last year. Xiaomi held steady with a 4.3 percent share.

"In a slowing smartphone market, where large vendors are experiencing growth saturation, emerging brands are disrupting existing brands' long-standing business models to increase their share," said Anshul Gupta, research director at Gartner. "With such changing smartphone market dynamics, Chinese brands are emerging as the new top global brands. Two Chinese brands ranked within the top five worldwide smartphone vendors in the first quarter of 2015, and represented 11 percent of the market."

Apple has forecast another difficult quarter ahead, placing at least some of the blame for its current challenges on the strong US dollar. With the dollar stronger against numerous currencies, Apple has put greater emphasis on retaining its overall margins by moving the pricing of its products up in line with currency movements in those countries and markets, rather than absorbing any of the costs by either keeping its pricing stable in global markets, or lowering them to help stimulate sales.

[Inkling]

What's a strong dollar got to do with products sold and assembled overseas with parts made overseas? Indeed, given that Apple hoards almost all its foreign income in foreign banks, a strong dollar is only relevant in ways that should raise Apple's domestic profits. It pays less in dollars for what it sells in the U.S. Methinks Apple has simply gotten addicted to high profits and, now that the smartphone market is more competitive, is facing pressures on those profits. Apple is living in the past and must adapt or suffer the consequencies.

[Spheric Harlot]

Originally Posted by Inkling 

What's a strong dollar got to do with products sold and assembled overseas with parts made overseas? Indeed, given that Apple hoards almost all its foreign income in foreign banks, a strong dollar is only relevant in ways that should raise Apple's domestic profits. It pays less in dollars for what it sells in the U.S. Methinks Apple has simply gotten addicted to high profits and, now that the smartphone market is more competitive, is facing pressures on those profits. Apple is living in the past and must adapt or suffer the consequencies.

This is not about how much money Apple is making; it's about how many people are buying their phones. Apple sells them for dollars, and a strong dollar means products are more expensive abroad.

[Steve Wilkinson]

Originally Posted by Inkling 

What's a strong dollar got to do with products sold and assembled overseas with parts made overseas? Indeed, given that Apple hoards almost all its foreign income in foreign banks, a strong dollar is only relevant in ways that should raise Apple's domestic profits.

For sure. For example, I'm trying to wait-out a currency adjustment for CAD store, and hoping CAD goes up with respect for USD before I purchase a couple of things. I don't see any reason the products *have* to be based on USD, and then so slow to react to currency fluctuations. Why not an average of parts and labour converted to whatever native currency where they sell? (i.e.: if it's mostly in China, some R&D in USA, then it would be some percentage China/USD -> CAD for the Canadian market. Currently, Apple just picks a point once per year or something and sets all the price-points against the USD.)

Originally Posted by Spheric Harlot 

Apple sells them for dollars, and a strong dollar means products are more expensive abroad.

Yea, but why? It's an international company, with much of the expense/labour, etc. not based in the US anyway.

Originally Posted by NewsPoster 

Apple has forecast another difficult quarter ahead, placing at least some of the blame for its current challenges on the strong US dollar. With the dollar stronger against numerous currencies, Apple has put greater emphasis on retaining its overall margins by moving the pricing of its products up in line with currency movements in those countries and markets, rather than absorbing any of the costs by either keeping its pricing stable in global markets, or lowering them to help stimulate sales.

Bingo, it's a choice they are making. They are choosing to base on USD to maximize their profit margins at the cost of reduced sales. It's probably because they think the brand is strong enough and their on top of the mountain. I guarantee if this continues too long, they'll adjust their strategy.

[DiabloConQueso]

So you'd rather be surprised every morning when you visit the online Apple Store, with prices different than they were the day before, due to fluctuating labor costs and currency strengths and weaknesses?

You'd want a MacBook Pro to be 2,000 CAD one day, then 1,900 CAD the next, and then 2,100 CAD the day after that?

I highly doubt you really would.

[Steve Wilkinson]

Originally Posted by DiabloConQueso 

So you'd rather be surprised every morning when you visit the online Apple Store, with prices different than they were the day before, due to fluctuating labor costs and currency strengths and weaknesses?

You'd want a MacBook Pro to be 2,000 CAD one day, then 1,900 CAD the next, and then 2,100 CAD the day after that?

I highly doubt you really would.

Actually, yes, given the current situation. Since most of what I deal with on a daily basis is priced in USD, the amount of money in exchange that I lose (very seldom gain) does, in fact, vary daily (hourly, by the minute).

I'm not saying Apple has to adjust prices in real-time (as most of my purchases are), but they could re-evaluate it a bit more regularly. For example, about a month or so ago, if I bought an iPhone SE, I'd lose like $75 CAD over what a direct exchange rate purchase from the US would be. Currently, I'd lose about $50. I'd rather save that $50.

[Spheric Harlot]

Originally Posted by Steve Wilkinson 

Yea, but why? It's an international company, with much of the expense/labour, etc. not based in the US anyway.

Do you think they pay Foxconn in yuan? Of course not. Apple's entire operations are built on long-term contracts in dollars, end-to-end.

[Steve Wilkinson]

Originally Posted by Spheric Harlot 

Do you think they pay Foxconn in yuan? Of course not. Apple's entire operations are built on long-term contracts in dollars, end-to-end.

I can wait until they properly adjust the currency again, then.