iSuppli Reports 4% Sequential Market Share Loss For iPhones As HTC Shares Surges By 63%

Tyler Durden's picture

The latest news out of iSuppli is rather troubling for Apple: the market intelligence analytics firm confirms that the momentum behind the iPhone may be dwindling, while phones based on Android are benefitting majorly. According to the Q2 update global smart phone update, Apple saw a -4.0% sequential change in market share growth, while HTC was the big winner at +63.1%. From iSuppli: "In a sign of the growing momentum behind Google Corp.’s Android,
makers of handsets utilizing the operating system represented the
majority of the fastest-growing firms among the Top 10 smart phone
brands in the second quarter, according to the mobile and wireless
research firm iSuppli Corp."Could the Borg collective be dissolving? Or is it time for pictures of the iPhone 5 through 10 to be leaked?

From iSuppli:

Droid phone specialist HTC Corp. achieved industry-leading growth, with its smart phone shipments rising by a stunning 63.1 percent in the second quarter compared to the first. Meanwhile, on the strength of its Android-based Galaxy line of smart phones, Samsung Electronics posted the second strongest performance, with a 55.6 percent sequential rise. New Android licensee Sony Ericsson came in fourth in terms of growth, with shipments rising by 15.4 percent. Finally, Droid-focused Motorola Inc. ranked fifth, with an increase of 12.5 percent.

“Every brand that has put effort into designing smart phones using Google’s mobile operating system is riding the Android wave,” said Tina Teng, senior analyst for wireless communications at iSuppli. “From the spectacular growth of HTC and Samsung, to the steady advances of Motorola, Android is the secret sauce for smart phone growth for many companies in 2010.”

HTC on Center Stage
HTC’s Android success can be traced to wireless operators that want to showcase the capabilities of their upgraded networks by offering handsets with sophisticated features to subscribers. For example, U.S. wireless carrier Sprint Nextel Corp. is offering HTC’s EVO 4G, a feature-packed Android handset that can capitalize on the high speed of its WiMAX-based 4G network. To keep its momentum going, HTC is expected to offer an Android phone that supports Long Term Evolution (LTE)—the other major standard for 4G.

HTC’s share of global smart phone shipments in the second quarter rose to 8 percent, up from 5.3 percent in the first quarter, allowing the company to solidify its No. 4 position in the market.

Meanwhile, the share of No.5-ranked Samsung rose to 4.6 percent during the same period, up from 3.2 percent in the first quarter. The company’s advance is being driven by its Android-based Galaxy S smart phones, which are enjoying strong acceptance from consumers. In contrast, Samsung’s phones using its own bada platform don’t appear to be garnering as much interest. The company’s ranking in the global smart phone market rose one position from sixth place in the first quarter.

With its entry into the Android smart phone marketplace in 2010, Sony Ericsson’s share of shipments climbed to 2.5 percent, up from 2.3 percent in the first quarter.

Motorola’s Droid Success
While Motorola’s second-quarter growth was relatively modest compared to the high-flying results of HTC and Samsung, there are signs that the company’s decision to put all its eggs in the Android basket are paying off. On the strength of its Droid product line, Motorola now has experienced five consecutive quarters of growth starting in the second quarter of 2009—and has outgrown the overall smart phone market for the last four quarters.

Motorola’s Droid strategy is paying off. In North America, Motorola is benefitting from its advertising campaign with Verizon. Motorola also has been refreshing its smart phone portfolio constantly, keeping consumers interested in its product line.

However, even this success wasn’t enough to keep Motorola from slipping one position to sixth place, down from fifth in the first quarter because of Samsung’s prodigious growth.

Among the fastest-growing smart phone brands, the only one that cannot credit its success in the second quarter to Android was Sharp, which enjoyed the third fastest growth of 48.7 percent. Sharp only recently threw its hat into the Android arena in the fourth quarter; its advance in the second quarter was due to the company gaining market share in Japan.

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CashCowEquity's picture

Android bitchez......

Apple is "wormy"

Cognitive Dissonance's picture


Apple the company and Apple the myth have become national security priorities. Apple is a major driver of the stock market, both in price and momentum. Not to mention the all important market psychology. Apple leads the great recovery of the US consumer from the depths of the greatest recession/depression. 

It's the Big (market) Lie we can all tell each other because it contains plausible factoids and figures. Didn't you see all those geeks camped out for 84 days waiting on the iPhone 4?

As with any cherished mythology, it's blasphemy to speak ill of the divine and anointed Apple.

Dburn's picture


This is the kind of thing that really gets developers motivated:


Ngmoco, one of the most popular and successful game developers for Apple's iOS mobile platform, has been gobbled up by Japanese social game developer DeNA for upwards of $400 million in a bid to form the world's largest mobile social games platform company.



Until you start seeing that happen for app developers on Droid, investment dollars will flow to those who make good selling apps for the iOS.

In fact I'm surprised that GS hasn't started up the next bubble and taken a bunch of these fledgling companies public in order to start the next bubble. Then people can compare Price to Downloads to value the company like the infamous Page views to Price or Price to sales ratios for the dot.bomb stocks. The only time the stocks stopped floating on nothing is when they showed real earnings and people said "wow 300x earnings? Fuck that. "

Lesson learned. Best to keep them guessing about future prospects than actually give them hard data to extrapolate the potential.

Major league bubble potential here. Too bad these guys laugh at the quaint good old days of 7% commissions and the after IPO opening of inflated commissions from their inside flippers paying them back for an allotment of going up 300%. Somehow that just doesn't measure up with keys to the US treasury anymore.

What the hell, who can blame the "money for nothing, congress for free" no risk atmosphere of TaxpayerGetsFucked Street.

Cognitive Dissonance's picture

The latest news out of iSuppli is rather troubling for Apple: the market intelligence analytics firm confirms that the momentum behind the iPhone may be dwindling,....

If you're correct, considering Apple is over 20% of the NASDAQ, this (see chart below) is about to end. And with it, the stock market pump. In fact, the Naz is looking very tired of late.


reading's picture

oh, don't start trying to bait Harry.  It'll be a long day around here.

HarryWanger's picture

Sorry CD. Although you are correct that the Naz would dump if AAPL goes down, it's doing just the opposite. Came roaring off the lows of the day as did AAPL. Best to not mess with the Naz until AAPL shows some weakness. Don't see that happening any time soon.

SheepDog-One's picture

Apple ultra-fanboy Harry I hope it crashes on your head, unforeseen global disaster, economic or otherwise, should do nicely. Man, nothing I hate more than these tech stock fanboys, same as the RIMM fanboys at $149, now scorched bagholders oh I pray the same befalls you.

HarryWanger's picture

Not a fanboy here. I don't have an iPhone or an IPad. I do have 6 macs for work and an iPod. Really couldn't care less about their products. I've been pointing out for weeks though that it's a great stock and will continue to run. 

firstdivision's picture

AAPL just set up their first stumbling block to falling off their iPhone high horse.  They filed a suit against Nokia for patent infringement.  Nokia has too much ammo to fire back (think about all the patents that Nokia has on cellphone technology...second only to Motorola).  AAPL may have set themselves up to fall off their sugar high.  This could end really bad for AAPL, unless they decide to withdraw their suit against Nokia.  Never rattle the cages of an animal that has you by the balls.

Jake Green's picture

Apple just copyrighted the phrase, "there's an app for that", how much is that worth?

SheepDog-One's picture

I dont know, wait let me ask my android phone...

snowball777's picture

It's not about the handsets anymore, TD. Take a look at the numbers for app sales revenue.

"Downloads from iTunes are usually twice as large as downloads from Android. If you look at the number one on iPhone and the number one on Android, it's a lot bigger on the iPhone."

Read more:

Verizon is getting sloppy seconds by flooding the market with flack, but that's a short-term game. Consider how many of the droid handsets are only using pirated apps or are making some leenooks n3rd sport wood without generating dime one.


Dburn's picture



 No one has really figured out how to make money on the Droid set up except the chip makers and the carriers. Google doesn't make a dime on the O/S. Their stock doesn't show any of the above hoopla priced in because Schmidt himself inversely confessed that they haven't figured out how to monetize by saying "just think if we could figure out a way to get $10 per user, it could be a 10 Billion dollar add on to profit. Ok, lets give him that credit and divide by four and then look at Apples quarterly earnings now. Look at the cash flow growth. Google may one day figure all that out, but one has to question how many manufacturers will be clambering to be a "me too" HFT manufacturer by then,  and how far along will Apple be in developing vertical markets for both iPad and the iPhone by then? How motivated will Google be to make improvements on it's O/S. It has had a way of starting a lot of  shit and then losing enthusiasm for it much like Microsoft does.

Also I think the vertical markets is the one place people don't talk much about but where the greatest potential for growth is especially for the iPad.   .Lets not forget that Apple always seems to lower the boom on manufacturers that are years behind just as they complete a model that can be manufacturer, Apple has a new line out at 60% of the price with more power and features. They have already gotten the early adapter market. Sloppy seconds for the rest.


The prediction is that the smart phone market will be 270 Million smart phones  The fact that Apple still has a far larger installed base than HFT is not lost on developers. They have also loosened developer requirements. The care and upkeep of the Droid market place is like a sloppy seconds rubber store compared to the the iPhone store.

As far as monetizing: Apple gets $365.00 per phone from AT&T plus the cuts from the app store and content sales from itunes . There isn't a single HFT manufacturer who can look past the single sale of the phone for additional revenue. The 63% increase is coming off such a low base it's not surprising.

What could really stop this market cold is not Google. It's the carriers. They both started tiered pricing on Data. It takes them till month 17 on a two year contract to hit break-even before this started.  At first it seems ok at $15.00 . But at $10 + for each Gig, go to one of their calculators and assume you are using a iPad or a Droid phone as frequently as you do the desktop and you'll see a 10-20x increase in data charges. This could be the major buzz kill when parents start opening $400 Verizon and AT&T bills. Yet if we get past that the other weakness is Jobs himself. His ego , which causes people to hate him and the users and by extension hate the stock may be an impediment , but not much. The real impediment is if he gets sick. No one will be able to take his place. That and external forces will drop Apple, nothing else at this time is even on the horizon. The market is too big for their to be a single company dominating it like Microsoft does O/Ss.

What Apple has achieved is the holy grail for hardware and software makers and that's a big upfront chunk of cash and reoccurring fees . Tell me one HFT manufacturer who will not only have those advantages but have the cash and market size to buy parts in the quantity that Apple does.


One reason there are not many 10' LCD screens for upcoming competitors , if and when they get released,  for the iPad, is cost. Look at Samsung's projected price. It's equal to or more than Apples. The reason? Apple bought 10 Million LCD screens upfront. No competitor is going to be able to get approval for that kind of buy when the margins get thinner and thinner. In electronics, volume always means mean better pricing. So right from the get go, the HFT manufacturers are working on thinner margins. Then with every manufacturer coming out with a Droid phone they  have given the carriers the luxury they don't have with Apple, a Buyers market, which can only mean smaller subsidies. How long before the M& A starts?  Getting positioned for that may be a far better way to make money on smart phones than taking either side of Apple's stock right now.


The market projection of 270 Million phones is just a projection yet it still leaves a 150 Million phones to go or more. Apple, nor the combined total of all the HFDT manufacturers are going to be able to build that many phones anytime soon with Apple struggling to get 8-10 Million phones out a quarter. It's not like they don't have the cash with 50 Billion in cash and cash equivalents on their balance sheet.That's more firepower combined than all the HFT manufacturers who will soon tire of being a me too just like PC clone manufacturers fell one after another. The margins are horrible unless they get a large subsidy and there the carriers have negotiating power . The phones can barely be sold without the subsidy. On the other hand you have Verizon begging to get the iPhone and finally Apple is giving it to them but it has to adapt it's chip set and Verizon has to get it's network ready so it doesn't get whacked like AT&T did when all the iPhones come on-board. If Apple does an inventory build for the Verizon entry then the HFT numbers in terms of installed base are going to look pretty shitty , especially to the the developer market where thousands of used rubbers are sitting around in a disorganized shelf in the Droid market place with a real shitty smell coming from the store and most of the used rubbers free with the new ones sitting behind the used ones. 

Once the concept of "free" starts with software as in open source , it attracts a certain kind of customer that won't buy anything or seldom does and that's if they can find it.

Guess where the developers are going to put the most resources? It isn't the quantity of applications it's the quality they actually sell and make a profit on for the developer and Apple which is why no one manufacturer nor Google is seeing stock growth like Apple right now. If the market continues up , Apple will lead the way. If their numbers are good , the short covering will be intense this earnings season.

Finally , just as a benchmark, look at Amazon's Kindle. A more or less single use device that is affordable. I have one. I've spent 4x as much with Amazon then I have for years. They are incredibly convenient. It's in black and white and requires a reading lamp. Yet, look at what Amazon has done. They aren't even in the hardware business yet they have their customers buying it outright and then look forward to reoccurring revenues.


Both Amazon and Apple are so far ahead in creating the devices and the all important aftermarket sales , that it's hard for me  seeing Apple getting crushed in a growth market. People store a lot of shit on those phones. So when the 2 Year contract is up, they will upgrade because data transfer and a compelling price will make it worthwhile. A two year upgrade cycle is much faster than the 3-5+ refresh cycle for computers. Desktop computers have gotten so powerful and featured out , people are keeping them a lot long as are corporations. This is so new that a 2 Year upgrade cycle with a large installed user base has already created the critical mass for Apple that the other manufacturers can only dream about. You can bet they are concerned about Google hitting them up for a Microsoft OEM like charge for the O/S too.

For now, and as long as the market stays elevated which could be until next month or next year, Apple will have some dips, but no company sitting almost 20% of it's market cap in Cash is going to come crashing down like many people think. Also compare it's forward PE to any of the other growth stocks and the price appreciation too and then ask yourself is this a rational analysis or one based on emotion. "Apple should come down because I hate it?" How many shorts have gotten their asses toasted using that logic for a trade?

I think LPS should come down hard but my PUTs are dying. I don't own Apple products, I'm neither long or short the stock and no I am not a paid poster/blogger . Shit , they don't need one now. Every fund out there has to buy it.They have put together a hell of a business plan and have had a lot longer to work out the kinks of large volume sales in terms of service and support with their own retail outlets in most major population areas.

Try to get service and support from a manufacturer working on 18% or less.


Hokay, lets see the junk. HAHAHAHA




Panafrican Funktron Robot's picture

You're missing the point, open source OS means that the scrubs get to make software at a fraction of the cost of the developers your mentioning.  This will eat a gigantic hole into the margins of those developers (and by extension, Apple), because guess what?  Nobody is going to want an overpriced iPhone with limited, expensive apps when they can get a cheaper phone with free or low priced apps that are, in many cases, just as good or better.  You're wildly underestimating just how big the developer community is, and just how many of them are willing to produce quality apps for peanuts. Keep in mind, it's not just Android that's open source, Symbian is too as of February 2010, and Symbian is almost half the total market right now.  Even RIM is going to get a lot cheaper and easier to develop for as they integrate QNX. 

But, this will fall on deaf ears, because you've bought the marketing line that has been sold to you by the All Mighty One.  Have fun with that.

climacus's picture

Good analysis Dburn. The apps are what make the platform. Apple had this thoroughly figured out during their Mac vs. Windows years. They also understand that third-party app developers are not just mom and pop computerclub shareware authors, but co-conspirators in bringing value to the platform to achieve network effects. Apple *get* the dynamics of building and nurturing a software platform. Google is an advertising company looking for ways to spy on your cellphone data traffic and access patterns. Which explains why they are so narrowly-focused on getting as many phones out as possible. They only care about your eyeballs. If all you ever do with your Android phone is use 3rd party apps, they make zero money off you.

reading's picture

If you sell less handsets, eventually you will sell less apps.

e1618978's picture

If Apple does release a Verizon phone in the spring, it will give them a boost - they are handicapped by a single provider right now.

Lost My Shorts's picture

I recently purchased some Apple products in the USA for an overseas friend, and was astonished by the treatment you get in Apple stores.  It doesn't matter if you know exactly what you want to buy and have your credit card in hand.  They just ignore you, or tell you to wait until not sure when.  It's like some fashionable Hollywood restaurant where you're not a-list enough to be served and they are hoping you will go away.

People in the cult probably don't mind that, but there would be an upper limit to sales.  I am not surprised that normal people (still the majority) jump at the chance to buy a competing product and avoid that bullshit.

shushup's picture

It's not like that in the Atlanta stores.

They are always very very busy. You take a number and wait your turn. The employee's work very hard and give you the help you need when it's your turn.

quadcap's picture

It's like that in Apple stores I've been in as well.  The employees take your name, let you wait in the store so you can play with all the cool AAPL stuff, then they call you up, so they can explain to you why your phone doesn't work: "It's not a phone, really, it's a computer.  It keeps crashing, you see, because of the apps you've downloaded.  It's kind of like Windows, you see."



dwdollar's picture

Many humans enjoy thinking they're part of some elite insider club.  Apple knows how to capitalize on this behavior.

lilimarlene1's picture

I quit my job about a year ago. Yeah, quit. Yeah, I know. Anyway, when there I finally got my way and got an Iphone. It was nice. Crappy call reception. I wasn't that much of an app user.

So, when I quit, I needed to get something to replace my Iphone.

I got an Eris. An HTC, Droid Eris. It's great! I took to it right away, and now I even use apps (pandora - hey, I'm a girl).

Anyway, next up: I gotta economize, so I just got rid of FIOS. I went back to a slightly (hardly noticible) slower connection via Time Warner's internet service, digital broadband.

I have basic cable for $16.99 and change per month. I have internet for $36.00 per month, too.

But what I am waiting on is Google TV. I can get the logitech box for 3 bills. I can get all kinds of custom programming.

It will be, in many respects, my computer. I'll be able to send stuff to it via  my droid. Heck, the Droid will act like a hand set with it. Hmmm...I just realized that.

Anyway, Google rules with that, I think.



PicassoInActions's picture

You can sale used Sinfull fruit phone 2 years later for almost the same price as new.

You can give away your htc or any other phone practicly for free after 3 mnonth on the market.

Apple is not going anywhere till some1 will take out that SOB ISteve.


WIndows mobile 7 is going to take some front running for some time, starting in about 4-6 month from now.



Maos Dog's picture

Apple is not going anywhere till some1 will take out that SOB ISteve.


Steve Jobs will NEVER die..

Apple board will either make an animatronic Steve Jobs or stuff him like Lenin...

shushup's picture

So why isn't APPL down today?

Shareholders must not be too worried about it.


SheepDog-One's picture

Wait, you assign super intelligence to Apple shareholders why exactly?

SheepDog-One's picture

RIMM shareholders were also the coolest and smartest kids on the block too at $149 a short time ago.

Internet Tough Guy's picture

And Intel, Nortel, Qualcomm, and...

HarryWanger's picture

They're not worried because AAPL sells a dozen other products that are crushing competition. iPads are selling by the millions and their Mac line continues to take market share from PC's. There's still a lot of growth left here.

carbonmutant's picture

CashCow stole my line ... lol

HarryWanger's picture

Let's see, indices down nicely and AAPL, oh, it's up. This is isn't news. People buy all the useless iGadget stuff to fill out the orbit. iPads selling by the millions. Why? Who knows. AppleTV, with not a great review to date, sold out immediately. Why? Who knows.

Apple will post a blow out Q once again. The stock will stall somewhere in the low to mid 300's but until then there's still a good 20% to be made rather quickly here.

Maos Dog's picture

I just got my Apple TV, it's 99 bucks, and lets me stream youtube and netflix directly to the HDTV via an HDMI port *very* easily. I was not able to do this before Apple TV

Now I can pour myself a big drink and watch those 40 min videos like this:

In the comfort of my living room.

Just saying....

HarryWanger's picture

Can do the same and much, much more with a simple Blu-Ray player. Or, if you want a lot of other features go for the WD box or the new Boxee Box. Both will actually stream any internet content.

But as with everything Apple, it's got the logo and people blindly follow. That's exactly why this stock will continue to run higher and higher.

SheepDog-One's picture

Wow Harry you sound just like these 2 dopey secretaries I always hear in the coffee room on their breaks informing each other how great their Apple stock is because their daughters have em too along with all the other cool kids and how its going to make them so rich. I hope you all are left holding the bag suddenly and big time.

patience...'s picture

So you two "dopey" secretaries are sitting on nice returns and your sitting on your android.

I'd be pissed too.

SpaceHerpes's picture

What did you pay for that blue ray and why would anyone buy physical media?

channel_zero's picture

Why buy physical media?

You fail to see the benefits of playing the content you bought on any device you own?

And then, there's the paying for content you never consume.

You have been duped into renting what belongs to you.

Cognitive Dissonance's picture

Harry, is it just possible that Apple might be cooking the books, with the blessing of the US government? I mean, considering how important Apple is to the NASDAQ index and all, might the company be seen as important to the Ponzi and thus a national security priority?

Intelligence Czar Can Waive SEC Rules

Now, the White House's top spymaster can cite national security to exempt businesses from reporting requirements.

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.


Dirty Dick's picture

It would be statistically impossible for Apple to not be losing market share. Apple is guaranteed to continue to lose market share on paper because the ratio of android handsets versus apple is 10-1. There are 10+ phones on the market with availablility of to be sold on all carriers platform.  Apple has one handset on one carrier in the US. When they launch a CDMA handset the the market share loss will improve.


This has no impact on Apples earning because they have more upside for future sales than any other carrier, due to the fact they are just now opening their product up to all of the other carriers in the US.


shushup's picture

And yet another beautiful V shaped recovery sponsored by APPL, GOOG, PCLN, AMZN, BIDU and NFLX.

Fat Ass's picture

So what?  Apple pioneered the iPhone and google copied it.  In 5, 10 (15, 20, 25 etc) years Apple will pioneer the Next New Thing as well -- others will copy that too.

Yes - Apple is probably wildly overpriced (what else is worth owning? Apple is an Actual Company that makes Actual Stuff - who else can say that today?) and generally the stock market is shit etc.

rockmofo's picture

This data doesn't include sales from iPhone 4, which came out at the end of Q2, is a great phone and a huge success.  By Q2 the iPhone 3GS was far from being the best phone on the market.  Look for apple to win back market share in Q3 and Q4.  


However, in the long term, I think that Android's business model will result in it being the dominant platform.

channel_zero's picture

Only in the U.S. is the 600lb gorilla of mobile invisible. 

It's Nokia geniuses.  Every single article everywhere mentioning the iPhone has no mention Nokia's 50%+ WORLDWIDE 'smart phone' market share.

Apple has single-digit presence with a feature-weak, closed product.  Oh and here comes Google with another single-digit presence!

Is this the end of Nokia's dominance?  Apple's fanboys wish it were so...

DoctoRx's picture

An even-handed comparison between Android and iPhone

Yet (obviously) there is much more to AAPL than the iPhone.  A declining mkt share of an exploding market for the iPhone sounds like a winner for years to come; meanwhile AAPL perhaps selling at 15X CY 2011 earnings, still a classic GARP stock.  I can't see why anyone would short this stock w/o neg inside info on Steve J's health.  Owning almost any stock at today's valuations is however a dubious proposition.