android

Tim Cook, the Apple CEO, once again told the investors that the secret behind iPhone’s sales success was the Android switchers.

But the statistics from the Apple’s earnings summary, and data from other independent market research firms, indicate a different story:

Тhe main reasons the iPhone is running out of the market – Tim Cook said that the sales would go down in the following quarter- was because the Alphabet’s Android phone system was resilient as the iPhone’s franchise had been weakened.

According to Kantar Worldwide, the Apple’s iOS lost a lot of market share in each single market except only in China in that last quarter. The trend was similar in the research carried out by investment analysts at the Raymond James.

This is what Cook said at the time:

He repeatedly said that over the last six quarters, Apple managed to set new records as many customers switched from Android to Apple Phones.

He also says that they were blown away by the number of Android switchers that they had in the last quarter. It was the biggest ever that they have ever recorded. And so they saw that as a big opportunity.

When iPhone 6 was launched in 2014, this statements from Cook were absolutely true. With their new format big-screen phones, the Apple was able to dislodge Android Phones- and more specifically Samsung-out of nowhere, as a lot of people switched to it. But from then, Apple has managed to establish itself and persuade a majority of the iPhone users with the old phones to move into using iPhone 6s or iPhone 6 lines.

Cook also emphasized that:

A large number of people who had an iPhone phone prior to the release of iPhone 6 plus and iPhone 6- and this was in 2014, September- that they are still using those old models and have not yet upgraded to the iPhone 6, 6s, 6 plus or 6s plus and they are about 60%. This simply means that 40% have upgraded while 60% have not.

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According to Kantar Publication on their new findings about Android vs iOS, the Android switchers may actually be declining, this is according to Carolina MIlanesi who is the chief of research at the Kantar Woprldwide ComTech:

The Apple earnings in the US have been on their highest from 2012, asserting the fact that the client retention is a non-issue. However, client acquisition from the Android has down-sided from 13% in 4Q14 to almost 11% in 4Q15. The contribution of first time smartphone buyers made to Apple’s general sales numbers rose from 20% to 11% during the same period.

Here are some of Kantar’s statistics for the Apple’s major markets in the world. It lost its shares almost everywhere except only in China:

The last and more surprising thing that Cook told the investors was about the Apple’s currency problems, was that the devalued international currencies hurt the Apple products made in, and sold against a strong US dollar. Luca Maestri, the Apple CFO had earlier own said that the higher prices were the ones that had dampened the demand of the Apple products. What he was referring to here was the 11% decline in revenues witnessed for in the following quarter.

Cook later elaborated that:

The numbers that Luca was talking about was only based on the side of the currency, and that was before looking through the effects of the increase in price would sometimes have on the business for given period of time. Simply cook meant that the economic effect would be very large.

In other words, when we analyze the words of both the two executives from Apple, we get to learn that the Apple products are very vulnerable when it comes to price competitions. For such a long time, the myth around Apple was that it did not compete on price, since its products are always superior, and its iOS platform was very special compared to that of Android, and because the Android products-are cheaper- cannot be compared to an iPhone.

This year is one of the most interesting years for Apple. iPhone is in a declining state already in this quarter, just like the Samsung has managed to pull back after a two year period from which Apple was the dominant one.