Apple No Longer A Top Two Smartphone Manufacturer
If I asked you to guess the top two worldwide smartphone manufacturers you’d almost certainly say Apple and Samsung in whatever order. That’s because these two have led the smartphone game for more than a decade. However, you’d only be half right with your guess. In Q1 Huawei (pronounced Wa-way) replaced Apple for the second highest global smartphone shipments behind Samsung.
Even though Apple and its iOS operating system are the dominant handset in the US, it’s really an Android world. In 2018 86% of all the smartphones in the world ran on the Android operating system, which makes it particularly easy for manufacturers like Samsung, Huawei, etc. to grow in developing markets.
The other reason Apple’s share of smartphone shipments is declining has to do with their focus on the premium market. Apple’s latest phones, the Xs and 10s, price tags start at $1,000, which makes it hard for all but the most affluent consumers to buy them. This trend is also why Apple is trying to pivot from selling devices to subscription services like Apple TV, Apple Music, etc..