According to Apple's (NASDAQ:AAPL) latest quarterly financial results, Apple recorded a sharp decline in the number of sale of IPhone units and it seems to keep dropping in the coming months.
Although CEO Tim Cook blamed the iPhone declines on a weaker-than-hoped upgrade cycle relative to that seen following the iPhone 6/6 Plus launch as well as broader macroeconomic weakness. Cook pointed to high customer loyalty and record levels of Android switchers to iPhone as positives that bode well for the company's iPhone business over the long term.
As that has been said let me explain how apple is losing its market share to Samsung.
Looking at the previous year comparisons
Apple has a drop in sales of iPhone from around 61 million to around 51 million in the most recent quarter, approximately 16% reduction. In contrast, Samsung (NASDAQOTH:SSNLF) had sales in its "Mobile" group (smartphones, tablets, etc.) which was approximately 8% increase.
In 2016, Samsung aims to have increase in the sale its mobile division on high-end and mid-low-end phones respectively
Apple, have seen a decrease in the sales of iPhone, which creates downfall in the company’s revenue, still the demand iPhone unit declines. It's crystal clear that Apple is losing its customers to Samsung.
Samsung gains market share against Apple
Samsung is gaining market share on high-end mobile devices, which Apple previously enjoys. In fact, given that the Galaxy S7 does not seem to be well accepted than Apple’s current flagship phone, iPhone 6s in some key ways (display quality, camera, and weight),
However, Apple is not the only player in the premium tier of the smartphone market (although it is the largest). Samsung may be gaining market share over other vendors of Android-based smartphones i.e. HTC, LG, and others
As Apple has been losing share; will iPhone 7 be a big hit?
Accepted, Apple is working hard to regain its market share with its IPhone 7. Apple's CEO promised an amazing iPhone 7 with amazing features. The future market share remains unpredictable until Apple launches its IPhone 7. Apple is a company known for its advanced marketing strategy so it relatively unbelievable to think that they will keep losing their market share