Android Gains On Buffett's Apple, Research Firm Says
One of Warren Buffett’s biggest positions, Apple, lost some of its iOS market share to competitors on the unavailability of the iPhone X for purchase in October, a research firm said Tuesday.
Apple’s operating system for the iPhone, iOS, dropped 7.6% to 32.9% of the market in the three months ending in October from 40.6% in the same period the previous year. Meanwhile, the share of phones running on Android jumped 8.2% to 66.2% from 58%, Kantar Worldpanel ComTech said.
iPhone share also fell 4.3% in the five largest markets in Europe and 7.5% in Japan. China was a bright spot, where market share eked a 0.5% gain in the past three months to 17.4%.
“This decrease is significant and puts pressure on the iPhone X to perform. Considering the complete overhaul that the iPhone X offers, consumers may be postponing their purchase decisions until they can test the iPhone X and decide whether the higher price, compared to the iPhone 8, is worth the premium to them,” Dominic Sunnebo, global business unit director for Kantar Worldpanel ComTech, said.
Apple’s highest-end model iPhone X launched on Nov. 3 and sold out within minutes when Apple allowed preorders a week before, despite the $999 starting price, which is $50 more than the previous most expensive iPhone, research firm IHS Markit said.
The difference maker in cost compared to other iPhone models relates to the X’s superior screen and facial recognition technology, enabled by a TrueDepth sensing system. Otherwise, it has the same platform components and similar architecture to the iPhone 8 Plus, IHS reported.
More data from Kantar WorldPanel ComTech suggested there is pent up demand for Apple’s new flagship. As of October, 35.3% of Apple’s base in Europe and the U.S. had owned their iPhone for more than two years. That increased from 30.1% a year earlier.