Apple’s smart moves start to pay off in India

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iPhone XS in India
Apple is working to lower hefty iPhone prices in India, which are sometimes higher than US prices.
Photo: Apple

Apple has a slender percentage of Indian handset sales, but there’s cause for optimism. We spoke with Anshika Jain, an analyst at Counterpoint Research, to see whether the changes Apple has been making to its business practices in India started to bear fruit during the second quarter of this year, and what they might mean for the future.

Apple Watch shipments shot up 49% last quarter

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Apple Watch in Singapore
When you see someone wearing a smartwatch, there’s a good chance it’s made by Apple.
Photo: Apple

Apple’s wearable is turning into a real success. Shipments of Apple Watch grew 49 percent in the first three months of this year.And it makes up the lion’s share of all smartwatches.

This company’s revenue for this product category grew 30 percent last quarter.

iPhone shipments dropped a ‘staggering’ 30% last quarter

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iPhone XR Spectrum ad
Those iPhones aren’t floating upward.
Photo: Apple

Although Apple no longer reports the number of iPhone units it sells, the company did admit there was a steep decline in handset revenue in the first three months of this year. Analysts are out with their exact estimates, and the number of iPhones shipped last quarter could have dipped as much as 30 percent.

AirPods absolutely dominate the wireless headphones market

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airpods
They may be small, but AirPods are a big hit.
Photo: Ste Smith/Cult of Mac

AirPods aren’t just a massive hit for Apple, they’re a giant in the overall “wireless hearables” market. According to new research from Counterpoint, AirPods made up a massive 60 percent of the overall market in Q4 2018.

It would have been even bigger, too, if customers hadn’t been waiting on Apple’s updated AirPods 2 at the time!

AirPods most popular brand in ‘hearables’ market

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AirPods sales
35 million pairs of AIrPods sold in 2018.
Photo: Ste Smith/Cult of Mac

Apple sold some 35 million AirPods last year. That makes the wireless earbuds, which had a rocky rollout, the most popular “hearables” device in the U.S., according to Counterpoint Research.

But Apple has competition within earshot from Sony and Samsung, both of which are only a couple of percentage points off in market share and are expected to grow.

Apple completely dominates premium smartphone sales

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iPhone X
Sales of the iPhone X were vastly higher than the equivalently-priced Samsung Galaxy Note 9.
Photo: Ste Smith/Cult of Mac

Samsung sells more phones than Apple, and its high-end devices like the Galaxy S9 get lots of attention. That means Samsung sells as many top-tier models as Apple, right? Nope, not even close.

Apple sells close to twice as many premium phones as its top rival. In this case, “premium” is any handset costing over $400. Which is a fairly low bar.

Apple loses marketshare but still makes the most money

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Apple profits
Apple can afford to lose some marketshare because of how profitable it is.
Illustration: Cult of Mac

Apple is the headline in two new studies. One seems alarming as it shows Apple’s share in the smartwatch market has declined by 14 percent.

But the second study shows Apple as the biggest money maker in the smartphone market by a long shot. Thanks to iPhone X, Apple held 62 percent of the market share in Q2. Its closest rival, Samsung, has suffered double-digit sales losses and is a distant second at 17 percent.

The most popular Apple Watch probably isn’t the model you’d expect

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Apple Watch
Apple Watch Series 1 continues to rule the roost.
Photo: Jim Merithew/Cult of Mac

The Apple Watch Series 3 is easily the best Apple Watch so far, but you wouldn’t know it from sales. Although Apple continues to lead the smartwatch industry, a massive 9 out of 10 Apple Watches sold are the older Apple Watch Series 1.

That’s markedly different from the smartphone industry, where Apple’s newest iPhone tends to be the world’s most popular (and certainly Apple’s most popular) handset. That’s even true when it’s a device like the iPhone X that are much pricier than older models.

Apple is driving high-end online smartphone sales

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2018 iPhone
Apple customers are loyal online shoppers, it seems!
Photo: Ste Smith/Cult of Mac

Amazon is responsible for selling an ever-increasing number of smartphones in the U.S., but Apple isn’t doing badly for itself, either.

According to a new report from Counterpoint Research, the iPhone remains the most popular smartphone in both offline and online channels. In Q2, Apple managed to sell almost as many handsets in Q2 2018 as Best Buy’s online store, despite only selling iPhones, rather than a range of brands. It is also almost single-handedly driving high-end online sales.