IPhone Demand Increases While US Smartphone Consumer Demand Dropped

Posted: Jul 16 2015, 5:57am CDT | by , Updated: Jul 16 2015, 6:00am CDT , in Apple


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iPhone Demand increases while US Smartphone Consumer Demand Dropped
Argus Insight

A new report says that reveals year-to-year drop of 8% in consumer demand with Apple slowly gaining and Samsung losing mindshare in the face of a declining market.

US smartphone demand in Q2 dropped steadily and is down 8% compared to June 2014 according to a new report from Argus Insights. With data compiled from approximately 622,000 consumer reviews since January 2014, the report says that despite the introduction of the new Samsung Galaxy S6 and S6 Edge and ongoing consumer interest in the latest iPhones, since January 2015 to June consumer demand and interest has fallen off significantly.

8% drop

According to the report, of all the top smartphone brands, Samsung and Apple maintained top spots in terms of consumer interest during the second quarter, ending June 30. In April the Samsung Galaxy S6 and S6 Edge were introduced, giving a boost to the company, though perhaps only because of ongoing retailer promotions.

In addition, there was sustained interest in the older Samsung Galaxy S5 and Note 4, however this mild Samsung interest came at a time when overall consumer interest was falling, so it came at the expense of other handset manufacturers, not as an increase in overall consumer demand.

The Q2 US consumer data reveals that despite the release of two flagship phones, Samsung failed to excite consumers. While the new Samsung Galaxy S6 and S6 Edge created an initial influx in demand, those gains quickly fell off, and Samsung saw less happy, less interested flagship users.

During the same time, Apple saw increasingly positive attention for the iPhone 6 (launched in September 2014) and even the iPhone 5S which is more than a year old. As reflected in the Argus Insights consumer review analysis, Samsung’s recent effort to refresh their line of handsets was met with a dwindling volume of lackluster reviews, while Apple’s reputation for innovation is apparently keeping consumers happy and willing to invest in the brand.

In terms of mindshare, Apple and Samsung ranked highest among the ‘delightful’ smartphone manufacturers, however Microsoft and Asus, both with a much smaller marketshare, saw the highest delight scores of the quarter. Among mid-tier manufacturers, Motorola consumers reported the highest delight, ranking the brand above LG and HTC. (Delight ranking is based on consumer reviews.)

“This last quarter showed a very dramatic decline in consumer interest in the available smartphones in the US, and even the latest Samsung flagship phones barely made a difference in overall excitement,” said John Feland, CEO and founder, Argus Insights. “In fact, iPhone 6 demand, as measured by consumer review analysis, jumped when customers waiting to purchase and apparently open to buying a Samsung, instead chose an Apple iPhone. Even the early launch of the Note 5 is unlikely to take share away from Apple unless Samsung delivers more than just upgraded hardware. It seems at this point, with such a flagging in consumer interest, that perhaps the smartphone market has hit a saturation point.”

In our opinion the smartphone evolution has slowed done and this is why consumer interest is falling. Consumers can get comfortably by with an iPhone 5 or Galaxy S4 as newer smartphones only improve the main functions of a smartphone marginally. Only if consumers want a bigger screen or a better camera they are considering an upgrade. There is nothing drastically new coming in smartphones.

Argus Insights Methodology

Argus Insights is founded on the fact that mindshare predicts demand. Through curated analysis of global consumer reviews and social media conversations, we provide comprehensive visibility at market, product, and attribute levels to determine what is delighting and disappointing the market. Our customers take action on our insights to deliver better products, more impactful launches, create forecasts, perform competitor analysis, and track events and analyst relations.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]i4u.com.




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