USA: Disappointing iPhone 5 sales see LG overtaking Apple in phone market
Apple has suffered another setback in its home market, with lower-than-expected sales of the iPhone 5 allowing rival LG to steal the number two spot in the US phone market in the peak December selling period.
That's according to figures released by Hong Kong-based Counterpoint Research, which also says Motorola and HTC gained US market share last month.
It's the first time there's been a Korean one-two in the States since Autumn 2011, when Apple launched the iPhone 4S and overtook LG. Strong sales of LG's Optimus G (above) and Nexus 4 smartphones, along with its strength in the 'feature phone' market, saw LG rise to a 13% market share in December 2012, overtaking Apple on 12%.
The market is still dominated by Samsung, which has a 33% share, but Apple's poor performance has also seen Motorola raising its share to 9%, and HTC to 8%.
The report comes among widely-reported claims that Apple is scaling back its requirements for parts for the iPhone 5, which has affected a range of companies including display manufacturers Sharp, Japan Display and LG Display.
Sources including the Wall Street Journal have reported Apple halving iPhone screen orders for the first three months of this year, while Reuters reported Sharp has reduced its output of panels for the iPad.
But analysts seem divided over the reason for the reported reductions, with suggestions running from poor demand to better manufacturing yields meaning less components are wasted, and even the imminent arrival of a new Apple iPhone model, already being talked of as the iPhone 6, rumoured to be on the way in the Summer.
LG says it had sold over a million of its Optimus G smartphones worldwide by the end of last year, but there are said to be shortages of the Google Nexus 4 smartphone (left) it makes.
It's apparently sold out in the States, and has seen ten times greater demand than was anticipated in European markets, including the UK.
LG is said to be increasing production of the Nexus 4 next month in order to meet the demand for the Google-branded device.
And it's also being reported that LG will launch an Optimus G Pro version in markets including Japan in the next few months, according to an apparent leak of specifications and teaser images.
It's thought that, with a Samsung Galaxy S IV on the way and the possibility of an iPhone 6, LG is keen to at least one more 'premium' smartphone on sale ahead of its rivals.
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Comments
This may be true Clare though did this information come from Apple itself of the media? As the media love the sound of doom and gloom as it gets people talking
How can the highest number of iPhone sales so far be classified as "poor performance?
Quite simply: if it failed to meet the sales expectations of both Apple and the market.
For example, one of the brands I work with has very clear targets to double the size of its business this year. Even if it sells 75% more product than in 2012 it will consider its sales disappointing
Andrew, I'm sorry but you only have to look at the emotive language used in this What HiFi story's headline ("Disappointing iPhone 5 sales") and text ("Apples poor performance") to conclude that this story is just another case of journalistic sensationalism.
How can the highest number of iPhone sales so far be classified as "poor performance?
Similar comments were made elsewhere last summer after a quarter where iPhone sales were up 54% on the same period in the previous year. 54% up and that's poor? I'm sure 99% of all the world's businesses would love that sort of growth?
I'm not in any way trying to defend Apple or any other company, but you only have to look at the freely availble facts to see how these stories are short in accuracy and heavy on spin.
Smartphone sales have exploded over the last 12 months benefitting Apple as well as the leading Android phone manufacturers, particularly Samsung, who have experienced phenomenal sales figures. if you want an example of poor sales performance, look at RIM, Nokia and HTC.
Indeed, but worth noting that report you link to concerns smartphones – not the total phone market, which was the subject of the news story above
Just to demonstrate how some of these "news stories" should be treated with a degree of caution and scepticism .
The Hong Kong - based company making this report is at odds with other reports.
For example this is today's news.....
http://www.kantarworldpanel.com/global/News/news-articles/US-iOS-Maintains-Lead-Among-US-Smartphone-OS-Sales
Reporting period is the 12 weeks up to 23rd December 2012.
Apple iOS sales take 51.% of the US smartphone market. 6.3% up on the same period a year ago.
Apparently this is iOS's highest ever sales share in the US.
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Thanks for that Andrew.
I think we should bear in mind that most of these reports, eminate from so called leaks.
Let's wait and see what the actual figures are.
There are a number of reasons being put forward in the various speculation going on around the web, such as a run-down prior to the release of the next iPhone, or iPhones (plural !!). There's even talk of switching to new energy efficient IGZO displays, rather than the current LCD's.
It's all rather interesting.
"Japan Display, which operates six domestic plants, is expected to feel the biggest impact. A plant in Nomi, Ishikawa Prefecture -- a dedicated facility in which Apple invested heavily and that began operating last June -- is expected to temporarily reduce output by 70-80% compared with the October-December term.
"Sharp's Kameyama No. 1 plant in Mie Prefecture, a dedicated facility for iPhone 5 LCD panels, will slash output in January and February by around 40% from the October-December quarter, when it was near full capacity.
"The Kameyama No. 2 plant, whose customers for small and midsize panels extend beyond Apple, will cultivate demand for use in notebook computers to help pick up the slack."
(Nikkei.com, 14.01.13)
There have been various unsubstantiated stories and rumours fed to the press over the last few weeks, trying to talk down the share price ahead of Apples quarterly results being announced on the 23rd January.
There's a lot of speculation that it's the result of market manipulation prior to options expiring, because a lot of the hedge funds stand to benefit from a lower share price.
As with a lot of companies, Apples biggest sales period is the December quarter (Oct-Dec) that covers the pre-Christmas (Holidays) shopping period. sales then traditionally fall away in the following March quarter to about two thirds of the December quarter.
The report that said Apple had cut the order for iPhone 5 screens in half, assumed that sales were going to be far higher in the March quarter than what would be reasonably expected. They gave figures far higher than the December quarter, which would be nonsense.
It also only mentioned screen orders from LG, who are only one of the three suppliers of iPhone screens. No mention of any cut in orders from the other suppliers.
Also bear in mind that many phones produced in this quarter would be finding their way to the shops in the following June quarter, traditionally the lowest sales period prior to the launch of the next iPhone model. Logic would say that production and parts orders would be cut to much lower figures by then?
Could one then safely say there is no news story here, other than the very stong possibility of certain vested interests using "spin" for their own financial gain?
jjbomber
I don't think anyone is seeing the light, i think its now more then ever which really started from the Samsung Galaxy 2 that people have more of a choice, Android have pretty much caught up with a solid OS which hasn't always been the case and now there are some real quality phones on the market and to top it off they are alot cheaper than a mid / high range iPhone
Very True TnA200 Apple never cared about numbers sold it is all about profit per item. Apple was always seen many (obviously not by the haters) as a more luxury item that was built well and worked the way it should, though now Steve Jobs is no longer with Apple i think prioritys are changing slightly.
The phone market was led by Apple just as Steve Jobs predicted and over the last year others have caught up and overtaken Apple and now the market has been saturated with iPads, so how many more can people buy or want to buy when you look at such a costly device being renewed yearly whe the iPad mini is far more affordable and for screen size you get more inches for your pound.
As for the rumours of a cheap iPhone, my guess its basicly going to replace the iPhone 4s with a newish look and lightning connector when the iPhone 5 gets pushed down a place and the new iPhone takes its place in 2013
Stocks of Apples cinema display are running dry which hints a new one is on its way
Apple's share price has dipped below $500 on the news, the first time that has happened in a while. So clearly it is affecting profits and clearly Apple do care.
Orders for the ipad4 are down as well, which Apple claim is due to fans switching to the ipad mini.
It seems that some end users are starting to see the light and move to Samsung and LG. Other faithful Apple fans are continuing to read The Sun.
Did Apple EVER care about sales numbers? They care about profit margin and profit. Period. Otherwise cheap iPhones (and iMacs) would have been all over the market for years!
So I'm a bit tired of these constant sales figure related stories. Only (some) analysts and journalists seem to care about these things, end users care about the user experience and the eco-system in place to use the devices.
Can we get better headlines that tell a story? This is not The Sun and neither are the readers in that category. Thanks.