Counterpoint: Apple’s iPhone gains ground in Canada

Apple took seven of the top 10 spots in a COVID-shrunken smartphone market.

From “One in Two Smartphones Sold in Canada During Q2 2020 Was an Apple iPhone” posted Tuesday:

Smartphone sales in Canada declined 36% YoY in Q2 2020, according to Counterpoint’s North America Monthly Channel Share Tracker service. The COVID-19 outbreak impacted Canadian smartphone sales while the majority of carrier stores remained shut during most of the first half of the quarter.

Apple and Samsung together continue to dominate the Canadian smartphone market. In Q2 2020, the two brands together accounted for 86% of the total smartphone sales compared to 81% during the Q2 2019. In terms of the volumes, Apple declined 24% YoY decline compared to Samsung’s 41% decline…

Commenting on the OEM performance, North America Research Director, Jeff Fieldhack said, “The market was under tight supply due to border restrictions. Apple was more resilient to declines compared to other brands. Samsung lost ground in the premium category while it gained slightly in the mid-range price segment with the new A-series models doing well. Later in the quarter, the premium Galaxy S-series picked up steam from heavy promotional discounts. Google and LG were the other two brands that did well while Motorola remained under tight supply…”

Key Highlights:

    • Apple captured seven spots in the top 10 best-selling devices during the quarter. Apple iPhone 11 continues to remain the best-selling smartphone in Q2 2020.
    • Samsung captured the remaining three spots in the top 10 best-selling models list. Surprisingly, the previous generation Galaxy S10 series fared better than the latest Galaxy S20 series. Galaxy S20 sales started to pick during late June driven by heavy promotions.

My take: “Apple was more resilient to declines compared to other brands” was my takeaway.

2 Comments

  1. Fred Stein said:
    Phenomenal validation of Apple’s full stack (aka closed system) strategy. “Galaxy S-series picked up steam from heavy promotional discounts”.

    The open competitors always have to slash prices due to excess inventory, or the need to get attention in the channel.

    The consumer does NOT benefit. Discounting kills resale value. It kills the ROI to support older models. Fragmentation hurts ROI for App developers.

    1
    August 13, 2020
    • Bart Yee said:
      @Fred Absolutely correct. The Galaxy S20 series has the misfortune of being introduced as the pandemic hit China and Asia, and then the world. There were already signs that it’s high price and relatively derivative design would fare poorly and sales trailed last year’s S10 badly, by up to half. This on top of the now 4 year trend of annual declining sales of the Galaxy flagships, including the Note series. I do not expect the Fold or Flex to sell much either, probably less than 4M units combined. Apple’s iphone SE alone probably has outsold them all in the same period.

      1
      August 14, 2020

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