Another setback for Apple and this time it’s the Brazilian market that gives Samsung’s smartphones a tighter hug than Apple’s iPhones. In a fresh report released by Counterpoint, Apple’s iPhone sales declined in the last quarter of 2018.
The overall Brazilian smartphone market shows signs of recovery, but Apple failed to bite a chunk from this burgeoning market.
Apple Stands at Fourth Position in Smartphone Market in Brazil
In the first quarter of 2017, Apple clocked 5.8% smartphone shipment market share, and in 2018, this figure came down to 5.7. For Samsung, the brand enjoys a purple patch as the company registered a 1.4% increase from 44.2% in Q1 2017.
The primary reason cited for Apple’s dwindling sales is the company’s decision to stop assembling devices in Brazil. However, one should not forget that Samsung has covered nearly half the share of smartphone market in Brazil.
Robust local manufacturing and high levels of marketing & promotion activities are believed as reasons why Samsung has edged out other companies.
Motorola is another mobile company that rules the roost in Brazil with 19.8% share in the smartphone market and a robust 20% year on year growth in the first quarter of 2018.
LG, like Apple, is facing fierce competition from Samsung and Motorola. LG witnessed decline annually but has managed to get the third position in the smartphone market with an 11.4% share.
Brazil is now recovering from the 2014 economic crisis, which ended in 2016. Probably, this is the reason why Samsung “kept the older generation series in the market, as they were still contributing to the majority of Samsung’s sales.”
Analyst Parv Sharma summarizes, “Samsung clearly dominates almost all the price bands except the USD > 500 price band. Samsung’s success is dependent on its J series, as the top four bestselling smartphones were from Samsung and had a share of about 22% of the smartphone market.”
Apple has to take some strong actions to improve its performance worldwide. The company is facing ‘executive exodus‘ in India following declining iPhone sales there.
In China, the world’s biggest smartphone market, Apple had to comply with cybersecurity laws and consequently, the company had to allow iCloud Data of Chinese Customers to be Controlled by Local Servers.
Though Apple has opened a manufacturing unit in India, Samsung has beaten the company by opening the world’s biggest mobile plant in India.
Apple needs to work on its pricing policy worldwide. Higher prices of iPhone X had a negative impact on the sales of the smartphone in the United States. However, there are many users, who think that the iPhone’s price tag is reasonable given its excellent features and security.
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