iPhone Launch Delayed, 3rd Quarter Market Share Overtaken by Xiaomi
'iPhone 12' Craze in Korea...Design, Price, and 5G Triple Threat
Suppressed Consumer Sentiment Stimulated, Apple Forecasts 4th Quarter Comeback
On the 30th, when Apple's first 5G smartphone, the iPhone 12 series, was officially released in Korea, customers were examining the products at the Apple Store on Garosugil, Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Reporter Han Jinju] Apple's iPhone 12, which entered the smartphone market a month later than usual, is making a remarkable impact. After ceding the third-quarter shipment volume to Samsung, Apple is expected to launch a full-scale counterattack starting in the fourth quarter.
According to market research firm IDC on the 31st, Apple's smartphone shipments fell from third to fourth place in the third quarter of 2020. iPhone shipments totaled 41.6 million units, a decrease of 5 million units compared to last year. The market share in the third quarter also dropped by 10.6 percentage points year-on-year, reaching only 11.6%. Samsung Electronics ranked first (80.4 million units, 22.7%), Huawei second (51.9 million units, 14.7%), and Xiaomi third (46.5 million units, 13.1%).
Apple's first 5G smartphone, the iPhone 12 series, was officially released in Korea on the 30th and is displayed at the Apple Store on Garosugil, Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@
The decline in iPhone shipments was directly reflected in Apple's performance. Apple achieved sales of $64.7 billion (approximately 73 trillion KRW) in the third quarter. Despite the decrease in iPhone sales, this was due to the expansion of service and iPad sales. The usual September release schedule for the iPhone was delayed by about a month, resulting in iPhone sales of $26.44 billion, down 20.7% from the previous year.
In the domestic market, pre-orders for the iPhone 12 are estimated to have reached 500,000 units. On the launch day, the number of activations exceeded 100,000 units in just one day. Particularly, the iPhone 12 Pro unlocked model is so popular that buyers have to wait until mid-November. The price was lowered compared to the previous model, and the design changed from rounded edges to squared edges, attracting attention. The pent-up consumer sentiment suppressed by the COVID-19 pandemic has revived, and the fact that it was the first iPhone released with 5G also contributed to increased replacement demand. Typically, the domestic market share of the iPhone series soars to 25% in the fourth quarter immediately after release, and there is keen interest in whether this figure can be surpassed.
On the 30th, when Apple's first 5G smartphone, the iPhone 12 series, was officially released in Korea, customers were examining the products at the Apple Store on Garosugil, Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@
The second wave of the iPhone 12 series is also anticipated. With the addition of the iPhone 12 Mini and iPhone 12 Pro Max, which will begin pre-orders on the 13th of next month, sales of the iPhone 12 series are expected to continue expanding. Market research firm Counterpoint forecasts that iPhone sales in 2020 will increase by 4% compared to the previous year. Compared to the iPhone 11 released in September last year, the iPhone 12's sales are expected to be about 1% higher by the end of this year.
Jeff Fieldhack, an analyst at Counterpoint, explained, "There will be significant pent-up demand from iPhone users who had postponed purchasing smartphones until 5G smartphones were released. Display size and price points will also stimulate upgrade purchases, and mobile carriers will actively use the first 5G iPhone in promotions to increase their 5G user base, which will greatly contribute to the increase in iPhone sales."
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