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Apple Delivers Greater Market Share for June, 2013 Quarter ~ Android is Loosing Share ~ With Apple’s 9 Million iPhone 5S + 5C weekend Apple’s Market Share likely to Surge (update) ๐ŸŽ๐ŸŽ๐ŸŽ๐ŸŽ๐ŸŽ๐Ÿ’ฐ๐Ÿ’ฐ๐Ÿ’ฐ

September 27, 2013

๐ŸŽ Apple Delivers Greater Market Share for Quarter ending June, 2013 ~ Android is Loosing Share. These figures are delightful for Apple as it gained +3.3% for the quarter ending in June as compared to the June quarter in 2012. Android on the other hand has begun a loss in share, down -1.1% and BlackBerry down -2.9%, for a total of negative 4.0% combined loss in market share for Android+BlackBerry. Extrapolating this further, it appears that Apple’s iPhone picked up most of its 3.3% gain in market share from the 4.0% combined lost of BlackBerry and Android.

๐ŸŽ AT&T is selling iPhones to 62.9% of its customers. AT&T’s retail efforts have been very helpful in Apple’s iPhone market penetration as for the June 2013 quarter AT&T increased its iPhone sales. AT&T is now selling the iPhone to 62.9% of all their Mobile Phone, an increase of +5.9%. Similarly, AT&T is only selling Android phones to 30.1% of its customers, representing a decrease of -5.7% of Android’s share at AT&T stores.

๐ŸŽ Apple Delivers Greater Market Share ~ Android is Loosing Share ~ With Apple’s 9 Million iPhone 5S + 5C weekend, Apple’s Market Share likely to Surge again in coming months. In my humble opinion, Apple’s attention to minute detail, the quality, the Apple iPhone’s ease of use, the Apple Ecosystem are in total, beginning to really sink-in to the minds of those Android folks that are tired of fighting with their smartphones.

๐ŸŽ It was reported recently by that it was receiving 5-Sale Commitment Acceptances per second, equating to 18,000 Android Sale Commitment Acceptances per Hour, during the Launch of Apple’s iPhone 5S, and 5C. This figure represents a 210% increase in Commitments Accepted by Samsung and Android users. Before this Launch, major USA cellular Carriers have been reporting that 26% of their Samsung and Android clients are Migrating directly to the Apple iPhone as soon as their 2-year contract terms expire. With Apple’s record breaking 3-Day weekend sale of 9 million iPhones, this Android Migration Percentage will surely surge. The migration by Apple customers to all other smartphone platforms is negligible by comparison.

๐ŸŽ Android’s Major problem, Google dropping Android, as its has a huge issue with Carriers using differing versions of the OS. The Android OS also has some significant financial liabilities with some of the “code” and “patent” infringement issues. Because of this Google is throwing in the Towel on Android for all of their Google Smart Phones.

๐ŸŽ Samsung also dropping Android from its smart phones too for a variety of other issues, mostly because over 50% of their existing Galaxy customers are trapped at lower versions of Android, for fear of their device “locking up” or loosing some of their favorite Apps, and Carrier fracturing.

๐ŸŽ In Sum, a Shake Up is Coming. The Smart Phone market is going to be shaken up quite a bit with both Samsung and Google dumping Android. As a result Apple’s iOS stable environment carefully maintained, will pay-off hugely, as folks flock to the iPhone. Granted the high technology of the smart phones is very important; however, like with the PC Computer industry, its all about the Operating System and the Software Apps.

๐ŸŽ Windows literally owned the PC operating system business, having over 85% market-share for decades. Today Windows OS8 is only being adopted by less than 10% of its installed user base, because its too cumbersome, slow, and Older Apps wont operate on it … Sounds familiar with the Android issues… fracturing.

๐ŸŽ Apple’s Solution. Come to the rescue for all those PC customers, with the iPad. Presently the iPad has a Small and Medium sizes. Soon the iPad will have a Large version. Apple providing Display sizes of 7.9″ 9.7″ and 12.9″ most of the Windows PC and Laptop users are covered. (The 12.9″ larger iPad rumored to be in the works)

๐ŸŽ iPad is “The Post PC” Choice, Combine:
1โƒฃ Three modern Hi Res Display sizes,
2โƒฃ Enhanced Processing & Memory Capabilities,
3โƒฃ World-wide Connectivity,
4โƒฃ Long Battery life,
5โƒฃ Very Nimble and stable iOS, plus a
6โƒฃ Huge array of incredible Apps… This all Adds-up to be
7โƒฃ The Destination for tens-of-millions of PC users will flock to, rather than spend money on any more Windows based PC. Apple called this phenomenon several years ago “The Post PC Era.” Apple is correct, PC sales globally is down about -10%.

๐ŸŽ The “Propeller Heads” have been whining about Apple’s iOS being too “Closed and Controlled” environment… Well, what’s going on with Android is the very reason Apple maintains an important “code” and “operability” control over its iOS and their APi drivers. This structure is good for everyone, the Users, the Carriers, and the App Developers.

๐ŸŽ Apple has over 93% of the 500 million iPhone users on iOS6, quickly upgrading to new iOS versions without fear of loosing operability of their iPhones or their Apps; the balance of the folks (the 7%) likely have 5 and 6 year old iPhones that are already past retirement-age and functionally obsolete, as the hardware does not have the capacity to take on iOS6. Even with the iPhone, functional obsolescence is inevitable, as technology continues to improve exponentially.

๐ŸŽ Almost all the “Analysis” from the big Investment Banking Houses, many of which just passed puberty, albeit with advanced degrees, had the iPhone and a Apple “Dead in the Water” “over the hill, utility stock.”
๐ŸŽAlmost all the “Analysis” concluded that SmartPhone Sales have “Peaked” as everyone that wanted a smart phone already bought one, and the only thing left would be very marginal changes in carriers.
๐ŸŽ Almost all the “Analysis” missed the point, because the iPhone 5 continues to Grow in Sales by exceeding “analyst expectations by 20%.
๐ŸŽ Almost all the “Analysis” predicted 25.5 million sales for the Quarter, however, actual iPhone Sales were in reality about 31.5 million units.
๐ŸŽ Almost all the “Analysis” predicted that the iPhone had “Peaked.”
๐ŸŽ Almost all the “Analysis” predicted that the iPhone 4 and iPhone 4S would be the large majority of the iPhone sales because they are lower priced. Not true as over half the iPhone sales and growth came from the sales of the iPhone 5.
๐ŸŽ Almost all the “Analysis” said that Apple’s franchise products center on devices that rest in saturated (“the iPhone has Peaked”) markets for high-end smartphones. The facts are unit sales and Apple’s 93% to 95% loyalty rate among iPhone customers look like a strong and healthy franchise.
๐ŸŽ Almost all the “Analysis” spoke of Apple’s inability to profit at lower prices. The facts are iPhone’s average selling price fell significantly to $580, down $32/unit in the this Q3 alone; and yet, Appleโ€™s gross margin was near the 37% it placed at the high-end of the quarterโ€™s guidance.
๐ŸŽ iPhone pricing continue to trend downward with the lower-priced iPhone expected in September.
๐ŸŽ Apple iPhone unit sales are likely to trend up in the event that new products materialize. The reason should be clear by now.
๐ŸŽ Given a more level playing field as to pricing with Android competition, many people will migrate iPhone, as their contracts expire. In fact, 51% of Verizon smartphone customers did just that this past quarter, activated iPhones, and those Activations was a 41% increase over the previous period, despite the launch of Samsungโ€™s new Galaxy S4.
๐ŸŽ Apple’s iPhone 4 and iPhone 4S, last year’s iPhone models, are each out-selling Samsung’s new Galaxy S4. Therefore the iPhone 5, the iPhone 4S, and the iPhone 4 are each individually out-selling Samsung’s Galaxy S4.
๐ŸŽ Apple’s CFO Peter Oppenheimer and CEO Tim Cook both mentioned that Apple “is on tract to have a very busy Fall.” What could this reasonably mean. From reading all the “reports” from component suppliers, there are 5 likely new Products including a New Operating System, to come to market this year.

๐ŸŽ This list is what may cause Apple to have a Very Busy Fall:
๐Ÿ“ฑ New iPhone 5S,
๐Ÿ“ฑ Entry Level iPhone 5
๐Ÿ“ฑ New iPad, version 5
๐Ÿ“ฑ New iPad mini, with Retina Display
๐Ÿ“ฑ New Operating System iOS7
, this upload-able software upgrade is really a Big Thing, as it Improves the User Experience immediately for over 500 million iDevices. This is like getting a New Device, as this iOS7 upgrade is a massive improvement in both “look and feel.”

๐ŸŽ What will likely not appear this year: (A) no iPhone with a 5″ Display, (B) no iWatch, (C) no iTV, at least not yet.

Designs can be Copied; However, Excellence and Discipline cannot.

๐ŸŽ In July of 2012, shares of Apple were trading in the low US $600 range and were about to embark on a rather sudden ascent to $700. The party, however, didn’t last long as Apple shares quickly began a steady decline, hitting a 52-week low of $390 this past April.

๐ŸŽ In an effort to explain why Apple stock was falling so precipitously, we were treated to a host of analysts and talking heads who were quick to proclaim that Apple had peaked and that it had, seemingly overnight, lost the ability to innovate.

๐ŸŽ Verizon today announced its earnings for Q2 2013. As expected, the carrier reported strong results with $5.2 billion in profit and $29.79 billion in revenue. Verizon added 1 million new customers and now has 100.1 million retail connections.

๐ŸŽ Verizon confirmed it activated 7.5 M smartphones, 51% of which were iPhones. This brings Verizon’s quarterly iPhone activations to approximately 3.87 million units, which is up from the 2.7 million it activated in the same quarter last year. This represnts a 143% increase in iPhone activations YoY. It is right on par with the 4 million activations it reported in the opening quarter of 2013. Recall it was not until later in 2010 that AT&T’s iPhone exclusivity expired, which let Verizon join the party.

๐ŸŽ An oft-heard refrain, absurd as it may be, was that everyone who wants an iPhone already has one and that Apple would face many challenges trying to sell more iPhones in an increasingly crowded marketplace. The absurdity is that (A) there is a stampeed of "Non-Smart Phone" owners (presently 40% of the cellular customers use "dumb-phones in the USA) that moving to Smart Phones, and (B) there are 26% of the Android Users that are migrating to iPhone very month, as their contracts expire.

๐ŸŽ But then a funny thing happened. Last week, Verizon reported its earnings results from Q2 2013 and the results were better than what most analysts were expecting. Last quarter, Verizon activated 7.5 million smartphones, of which 3.8 million units were iPhones. Put differently, nearly 51% of all smartphones Verizon activated last quarter were iPhones.

๐ŸŽ That’s pretty impressive, but the folks on Wall St. don’t care so much about product share as they do about overall growth. To that end, the 3.8 million iPhones Verizon activated this past quarter far eclipsed the 2.7 million units it sold during Q2 of 2012. Year over year, iPhone activations on Verizon grew by 40.7%.

๐ŸŽ And yet, somehow, that little tidbit was inexplicably glossed over by those who are so quick to paint a doom-and-gloom scenario for Apple based upon some sketchily sourced second-hand rumor about iPhone production emanating out of a manufacturing plant in Asia.

๐ŸŽ Apple is set to announce its earnings for the quarter gone Today, at 5pm eastern, and it remains to be seen how iPhone sales will measure up to the year-ago quarter. Indeed, many analysts are predicting that Apple’s year-over-year growth will be somewhat stagnant in that regard. And that may very well be the case.

๐ŸŽ After all, Verizon is just a single carrier and its recent results many not be representative of iPhone activations across all carriers.

๐ŸŽ I’m more positive, as Verizon was late to the iPhone Party, as were their sales associates, selling Android and BB almost exclusively. So here we are only several years later and Verizon is now selling More iPhones, than all the other phones combined, in the stores. IB Analysts not recognizing these facts is amazing to me.

๐ŸŽ BTW, I am not an Apple stakeholder so my opinions are not economically skewed.

๐ŸŽ That notwithstanding, it’d be nice if the investment banking analysts who get paid to keep up with Apple products, profits, pace, and the industry, paid as much attention to potentially good news as they do to potentially alarming news.

๐ŸŽ In Business as in Sports, everyone "hates" the Winner, and seems to cheer-on the under-dogs. IMHO, Apple IS actually Better, it delivers Better Products in every product category, and therefore should do Better business-wise.
However, the "Line to Stardom is Not a Straight Line UP."

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