Per Kantar Group, Apple Inc.’s (AAPL) iOS operating system has gained significant market share in the U.S.. Besides, it has also succeeded in extending its market share in Germany, Great Britain and Spain.
Kantar is a market research firm, which releases its smartphone survey data on a monthly basis based on a three-month rolling average. Per the latest survey report from Kantar, Apple’s iOS share in the U.S. increased from 41.5% in October to 47.4% in November.
However, it was not that lucky in China and the European Union (EU) where its market share declined. Apple lost market share in Japan too, slipping to 54% in November from 69% a year earlier when Apple benefitted from the introduction of the iPhone in collaboration with NTT Docomo, the country’s largest carrier. Android’s share in Japan increased to 42% from 30% over the same period.
It is believed that this surge in market share is on account of the huge demand for Apple’s newly released iPhones with large screen sizes, iPhone 6 and iPhone 6 Plus.
We believe that the increasing market share is a major positive for Apple as iPhone happens to be the prime revenue-earning product of the company. In the fourth quarter of fiscal 2014, iPhones alone accounted for 56.3% of Apple’s total revenue.
Nevertheless, we believe that Apple’s loyal customer base and innovative product pipeline are major positives. Moreover, the company’s entry into various new spheres such as health care, automobiles and others will boost top-line growth. However, stiff competition from the likes of Samsung, Hewlett-Packard (HPQ), Microsoft (MSFT), AMZN (AMZN) and Dell remains a headwind.
Currently, Apple has a Zacks Rank #2 (Buy).
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