iPhone Share Shrinks as Huawei to ZTE Lure Users

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July 26 (Bloomberg) -- Apple’s share of the global smartphone market fell to its lowest in three years in the second quarter as more consumers chose inexpensive handsets from Chinese makers over the iPhone. Bloomberg's John Butler speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

We ask a nasa scientist.

Cracks are appearing in am and samsung's products.

Both companies lost shares while smaller makers gained.

In the quarter, samsung took 30.4% market share but that was down from 32.2% last year.

Apple's market share was 13.1%, down from 16.6%. that's a two-year low for apple.

Meantime, l.g.'s shares surged to more than 5% from 3.7%. lenovo went from 3% to 5% and z.t.e. also posted a slight gain.

It suggests that the smartphone market is still growing.

We're joined now by john butler, a senior analyst with bloomberg industries.

You know, do these numbers surprise you?

They did a little bit.

The one thing i'd say is i expected apple's share to fall because, number one, you had the s-4 out there from samsung which has been a huge hit.

Then you have some dark horses out there with both lenovo and l.g. doing quite well.

So, you know, for -- from the stand point of apple, the need to get a product refresh out there has never been more pressing, in my view.

And i understand that you just visited a verizon store recently.

You picked up some interesting tidbits about why iphone sales might be slowing down.

Tell us about that.

It's interesting, i did a verizon store visit this morning and i'll give you the warning, it's a one-off store visit.

But what was interesting to me is i was talking to the rep about upgrading to an iphone and she said, you know, they're coming out with a new operating system, ios-7 in the fall, so instead of upgrating in early september which is when i'm due, she suggested that i wait until october for the new i.o.s. to come out because she felt a hardware upgrade would come out concurrently with that operating system upgrade.

I think she's right.

So, that can weigh a little bit on consumers' minds.

You get that sort of wait and see attitude on the part of consumers and it kim pact sales.

It certain -- and it can impact sales.

It certainly has that potential.

What about samsung?

Why is samsung seeing such a drop?

Is it just that the l.g.'s of the world are making better phones these days?

No, one thing to keep in mind is quarter in and quarter out, smartphone unit shipment share can really move around a lot.

I don't want to say it's seasonal, it is seasonal in the sense that the holiday's a big season, but it's seasonal in the sense that different vendors come out with upgrates at different parts -- upgrades at different times of the year that.

Can have an impact.

If a phone is new, it's fresh looking, it's appealing to consumers who can be swayed.

That's one thing i learned in the store this morning as well, is this rep told me that she has been able to sway consumer decision at the point of sale.

She goes, i want -- i always want my customers to keep a very open mind in terms of what their needs are and what the phones are that are available on the market.

It's interesting, l.g. of all companies seems to be the winner here.

What is it about what l.g. is doing right?

Well, i've seen the l.g. phones, i'm very impressed, i have to say.

They have some good devices out there.

And they're coming out with a new upgrade.

They have the -- currently have the g, they're coming out with the g-2, their new flagship phone.

At the end of the day, if you make an appealing device, if the technology is good, the screen's sharp, the camera's good, you're going to take share.

All right.

Bloomberg industry senior analyst john butler.

Thanks so much for giving us that anecdote here on

This text has been automatically generated. It may not be 100% accurate.


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