Market intelligence firm Counterpoint Research suggests that the delay in launching the iPhone 12 last year may well have worked for Apple.
The company says there were two benefits to the delay …
Apple sales fell
Counterpoint’s title is that smartphone sales in Europe in 2020 fell 14% from the previous year, and that Apple was not immune, with sales falling 4% from 2019 levels.
2020 was a roller coaster year for the European smartphone market. The COVID-19 pandemic hit the region hard, resulting in supply and demand problems. Meanwhile, economic and employment concerns have led consumers to save rather than spend, and widespread blockages have meant that many consumers were unable or unwilling to visit retail stores and buy new devices.
Speaking about the general market, Counterpoint Research Associate Director Jan Stryjak said: “April was the worst month of the year, with sales falling by almost 50% compared to 2019. Reducing cases and reducing restrictions led to a recovery over the summer, but the virus came back with a vengeance. COVID-19 cases increased in September, leading to new blockages in Europe from November. The end of the year, therefore, saw the market drop again, despite Apple’s best efforts (see below). Overall, 2020 saw the European smartphone market shrink 14% compared to 2019. ”
But the delay in launching the iPhone 12 brought benefits
But he notes that Apple fared better than the market as a whole and believes that the delay in launching the iPhone 12 may have been good news, not bad for Cupertino’s company.
Apple may have declined slightly in 2020, but that doesn’t tell the whole story. The decision to delay the launch of the iPhone 12 seems to have paid off, for two reasons. First, it gave iPhone 11 and iPhone SE the opportunity to demonstrate remarkable longevity, selling continuously well in many markets throughout the year. And secondly, demand for the new device increased which, when finally released in October, sold spectacularly. In fact, the iPhone 12 was Apple’s most successful device launch to date and led Apple to a record high 30% share in the fourth quarter of 2020.
With many facing financial pressure through licenses or reduced hours, midsize and budget brands fared better.
Xiaomi was the biggest success story in Europe in 2020, becoming the third largest OEM in the region at the expense of Huawei […] Oppo entered the European market in 2018, but 2020 was the year in which it gained a lot of momentum. Partnerships with Europe’s largest operator groups – namely, Vodafone, Telefonica, Orange and Deutsche Telekom – mean that Oppo devices are stored on the operator’s vital channel across Europe […] Realme was the fastest growing brand in Europe in 2020, with sales increasing more than tenfold in 2019. Its strong value proposition led to good growth in markets more concerned with prices, such as Italy, Spain and throughout Europe Eastern.
Overall, Gartner said earlier this week that Apple had modest growth at the expense of Samsung.
Photo of Malte Helmhold no Unsplash
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