Tag Archives: Apple

Apple Wins Class Action Law Suit – iPod Updates Were Genuin Improvements

Apple has won the class action law suit which could have resulted in the Cupertino company paying $1 billion.

The jury took only three hours to rule in favor of Apple. Consumers and retailers were looking for compensation as they claimed Apple abused their dominant position in the digital music space as they ensured iTunes music could only be played on the iPod and they also blocked other services with ongoing updates which Apple has said all along were simply updates to improve the iPod.

The jury agreed and also dismissed claims that the Apple strategy resulted in inflated prices for the iPod.

Apple said the following in a statement:

“We created iPod and iTunes to give our customers the world’s best way to listen to music,” Cupertino, California-based Apple said after today’s verdict. “Every time we’ve updated those products — and every Apple product over the years — we’ve done it to make the user experience even better.”

Samsung Market Share Continues To Decline, Xiaomi Soars

Samsung continues to see their smartphone market share decline. The Galaxy S5 has sold well below expectations and the South Korean giant has also struggled in China where Xiaomi took the number 1 spot from Samsung earlier this year.

The latest numbers from research firm Gartner reveal that Samsung continues to struggle while the growth continues for Xiaomi.

In the third quarter of 2014 overall smartphone sales increased by 20% thanks to demand in emerging markets.

Smartphones which account for 66% of total mobile sales are gaining traction in emerging markets, especially since the price difference to feature phones continues to decrease.

Samsung is still the largest smartphone maker but has lost almost 8% within a year. Xiaomi has seen the largest growth and are now the 4th largest smartphone manufacturer as market share increased from 1.5% to 5.3%. Huawei holds the third spot but Xiaomi is expected to overtake Huawei as they are growing quicker and are only 0.1% behind. Considering Xiaomi is only for sale in a number of regions the future growth potential is enormous.

Apple sales grew 26% in the third quarter thanks to the new iPhone 6 and iPhone 6 Plus. Gartner expects Apple to have the best quarter ever in terms of iPhone sales during the fourth quarter.

Worldwide Smartphone Sales to End Users by Vendor in 3Q14 (Thousands of Units)

Company

3Q14

Units

3Q14 Market Share (%)

3Q13

Units

3Q13 Market Share (%)

Samsung

73,212.4

24.4

80,356.8

32.1

Apple

38,186.6

12.7

30,330.0

12.1

Huawei

15,934.9

5.3

11,665.7

4.7

Xiaomi

15,772.5

5.2

3,617.5

1.5

Lenovo

15,011.9

5.0

12,882.0

5.2

Others

142,891.6

47.5

111,445.0

44.5

Total

301,009.9

100.0

250,297.0

100.0

Source: Gartner (December 2014)

“Over the holidays we expect record sales of the iPhone 6 and iPhone 6 Plus, but we should not underestimate the Chinese vendors and local brands,” said Annette Zimmermann, research director at Gartner. “Chinese players will continue to look at expanding in overseas emerging markets. In Europe prepaid country markets and attractive lost-cost LTE phones will also offer key opportunities for these brands.” Gartner expects sales of smartphones to reach 1.2 billion units in 2014.

In terms of OS market share it is no surprise that Android is dominating with 83.1%. iOS holds 12.7% while both Windows and Blackberry declined.

Worldwide Smartphone Sales to End Users by Operating System in 3Q14 (Thousands of Units)

Operating System

3Q14

Units

3Q14 Market Share (%)

3Q13

Units

3Q13 Market Share (%)

Android

250,060.2

83.1

205,243

82.0

iOS

38,186.6

12.7

30,330

12.1

Windows

9,033.4

3.0

8,916

3.6

Blackberry

2,419.5

0.8

4,401

1.8

Other OS

1,310.2

0.4

1,407

0.6

Total

301,009.9

100.0

250,296.8

100.0

Notebook Shipments Increased 10% In November

Notebook brands have recently adjusted their strategies in order to limit the impact tablets and smartphones have had on sales.

It seems that the strategy is going to work out for the holiday season. While overall notebook numbers are expected to see a small decline, in November it actually increased by 10%.

The two main reasons are strong HP enterprise sales and high demand in the low-cost consumer segment.

HP ordered 4 million units from ODMs, which is a 60% increase from the previous month.

All seven major vendors being Apple, Lenovo, Samsung, HP, Asus, Dell and Acer are expected to make further adjustment when it comes to their product offering which should shake things up in this space.

Source: Digitimes

iPhone Market Share More Than Triples

The iPhone 6 has given Apple a record third quarter but if we look at the latest research figures and taking into consideration that Apple has made it available in a lot more countries during this quarter, it is pretty certain that Apple is going to report record iPhone sales.

According to analyst firm Kantar Group, the iPhone has gained a lot of market share in the U.S., Japan, Germany and Great Britain.

In Great Britain the iPhone market share more than tripled from 8.5% to 31%. In Japan it also almost tripled from 17% to 48% while market share in the U.S. increased to 41.5%, up from 32.6%.

In Germany the market share was up 5.1% to 16.9%. According to the report some other regions in the EU decreased and so did the market share in China but could be down to the late launches and the fact that a majority of the market in those regions is in the entry level space.

Some positive news after the class action law suit has made headlines in the last few days.

Firefox Coming For iPhone And iPad

Firefox is one of the most popular browsers but it isn’t available for iOS. The reason is because Apple doesn’t allow Firefox to its own web engine, so the company has always said it would not release a Firefox version for iOS which would force them to run Apple’s engine instead.

Firefox manager Lukas Blakk wrote on Twitter “”we need to be where our users are so we’re going to get Firefox on iOS”.

Chris Beard, the new CEO of Firefox, seems to be making a number of strategic changes, just last month it was announced that Yahoo will be the default search engine, replacing Google.

Steve Jobs Emails Shown As Evidence In Class Action Law Suit

The class action law suit which could cost Apple $1 billion started yesterday and emails from Steve Jobs were used as evidence to show that Apple apparently abused the marketing leading position they had in the digital music space.

Plaintiffs’ attorney Patrick Coughlin showed an email from 2003 in which Steve Jobs wrote “We need to make sure that when Music Match launches their store, they cannot use iPod”.
In another email from 2005, Steve Jobs simply said “We need to change things here” when he became aware of a Real Player introducing a program which would enable users to buy music anywhere and play them on the iPod.

The attorneys argue that by locking the iPod, Apple was able to charge an unfair high price and it also stopped users from considering music players from other brands when upgrading as they could not move their purchased music with them.

iPad Sales Will Continue To Decline, Android To Dominate Tablet Market For Years

While Apple had a record quarter last time around, iPad sales continued to disappoint and decreased by 13%.

According to market research firm IDC that trend is going to continue. For the first time since the launch of the iPad it will see a year over year decline which is not surprising if you look at the last few quarters.

Currently the iPad has 27.5% market share which is forecasted to decline to 24.5% by 2018. Android is dominating the space with 67.7% market share but will also experience a slight decrease to 64%.

What Apple and Google leave on the table will benefit Microsoft. During the last earnings we already pointed out that strong demand for the Surface Pro 3 has increased tablet revenues to almost $1 billion and if IDC is right that will multiply as they predict the market share to increase from 4.6% to 11.4%.