The iPhone is back on top
Jaan is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Apple’s (NASDAQ: AAPL) iPhone is back on top in the USA according to the latest smartphone sales data from Kantar Worldpanel ComTech. The data covers the 12-week period ending Oct. 28, and puts the iPhone at 48.1% share vs. Android at 46.7% of the U.S. smartphone market.
This is no small achievement, given that Apple sells just three models, compared to scores of Google’s (NASDAQ: GOOG) Android models.
While the move to No. 1 is not reflected in Europe, the report notes that “However, [the iPhone] is now enjoying share gains in four of the five major European countries…”
According to the report, users are responding favorably to the larger screen size of the iPhone 5. But a huge factor is system loyalty, with 62% of sales to previous owners. Additionally, Android switchers provide 13% of sales, and 6% come from RIM’s (NASDAQ: BBRY) Blackberry owners.
Dominic Sunnebo, global consumer insight director at Kantar Worldpanel ComTech, comments:
“Apple has always managed to maintain loyalty levels far above the competition, and this has clearly played a part in driving sales of its new device. An impressive 92% of existing Apple owners in the US said they will choose an iPhone the next time they upgrade.
This comes as notes from IBM show that on Cyber Monday:
The iPad continued to generate more traffic than any other tablet or smartphone, driving more than 7 percent of online shopping. This was followed by iPhone at 6.9 percent and Android 4.5 percent. [emphasis added]
Additionally, ship times for the iPhone 5 have dropped to only 1 week on Apple’s online store. The company's manufacturing ramp-up apparently is close to meeting demand.
At the same time, ship times for the full iPad Mini line have lengthened to 2 weeks, showing high demand for the new product.
This all bodes well for Apple’s upcoming earnings. It seems we should be looking for new record sales.
With some analysts predicting iPhone sales of up to 50 million, and iPad sales also at record levels, the question now appears to be NOT “How many iDevices can Apple sell?” but rather “How many can they make?”
Malcolm Manness has a Masters degree in Computer Science, and worked for 14 years in development, technical publications and software quality assurance. He has been investing for 20 years. Currently, he does writing, and FileMaker Pro programming on contract.
His short fiction can be found (under pseudonym J. Seunnasepp) at http://50centflash.com/.
==== Understanding Apple series
You may love Apple and their products, or hate them to the core, but you cannot deny that Apple now has the highest market cap of any company, their products are trend setters, and currently they are trading at rather low multiples, especially regarding forward earnings.
Warren Buffet has the maxim: “Invest in what you know!” So, for those who want a unique perspective on Apple’s success, I have a series of articles Understanding Apple. I hope you will find them helpful and provocative.
Let me know what you think.
Related Article: Apple Physics: What goes down must go up.
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