Apple's iPhone 5s #1 Worldwide Smartphone And Quadruples Chinese Share

Counterpoint Technology Market Research released its October smartphone market share survey results which shows the iPhone 5s as the leading smartphone worldwide. It also found that Apple quadrupled its share in the Chinese market and that is before it has partnered with China Mobile . (Note that my family and I own Apple shares).

iPhones were 3 of the top 4 best selling smartphones worldwide

Counterpoint’s market share data is based on sell-out or sales surveyed at major mass retailers and distributors across different markets in 33 countries. Its latest survey showed that the iPhone 5s remained the top selling smartphone worldwide for the second month in a row despite lead-times of at least 2-3 weeks. With lead-times shortening through November and now at 24 hours on Apple’s websites I believe the 5s will retain the top spot for at least a few more months.

Counterpoint’s Neil Shah notes, “Apple's iPhone 5s helped Apple surpass Samsung in the US as well as maintain its leadership position in the Japanese smartphone market during October”. From a site I found in Japan that tracks smartphone sales the iPhone was in the first 9 positions last week, which is another indication of how well it is doing.

Samsung captured 5 of the top 9 positions (#3, 5, 6, 7 and 9) to solidify its dominance with Google ’s Android platform. Counterpoint’s Peter Richardson notes, “Galaxy S4 sales continued to lose its mojo after enjoying roughly 9 months of flagship lifecycle. Whereas, Galaxy Note III sales rose fast during the month as the phablet became the fifth best seller only after 40 days of launch which is exceptional performance for a device perceived to be niche.”

Source: Counterpoint’s Monthly Market Pulse, October 2013

iPhone’s share in China jumped from 3% in September  to 12% in October

iPhone’s saw a significant jump in share with the introduction of the 5s and 5c. Its share had been declining from about 5% in April to a low of about 2% in August before it took off in October to reach 12% and make Apple the number three smartphone vendor in China.

Commenting on Apple’s performance in China, Counterpoint’s Tom Kang notes, “Although the iPhone 5s didn’t attract long queues outside Apple retails stores as the iPhone 4S did a couple of years ago it definitely was more successful compared to what the iPhone 5 registered in terms of overall sales in a month. Also, with a China Mobile deal on the horizon, Apple iPhone 5s at all three carriers will for sure ignite a ‘price war’ boosting the overall iPhone 5s sales in China. This might allow Apple to even reach the No. 1 smartphone player in December or January in China.”

With a China Mobile announcement looking like it will happen next week there are estimates ranging from 10 million plus to almost 40 million iPhones that could be sold by China Mobile in the first year. My estimate is that an additional 15 million iPhones could be easily sold in the first year that would generate $8.3 billion in revenue and $3 of EPS.

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