Apple’s timely iPhone launch following Samsung’s calamity with its exploding Galaxy Note 7 models seemed fortuitous for Apple. But consumer behavior implies that there will be limited benefit for Apple and that few Samsung users will switch to iPhones.
Samsung’s recent travails with the exploding batteries in its Galaxy Note 7 smartphones caused speculation that disgruntled Android users might switch to iPhones, particularly with the media hype surrounding the launch of the iPhone 7.
But as Samsung is recalling millions of its Galaxy smartphones that first went on sale last month and Apple is launching its newest iPhone model, IDC found that Apple is unlikely to gain much market share. Users who switch from Samsung’s phones to iPhone must also switch operating systems and most likely leave behind valuable content and apps. Although some users might still decide to make the change, fewer people are willing to do so as the smartphone market has evolved, according to The Wall Street Journal.
Google’s Android operating system has accounted for more than 80 percent of smartphones sold globally over the past three years, while the Apple iOS platform’s share of the market has remained around 15 percent for the same period.
The iPhone 7 seems likely to be a popular phone and to have a significant upgrade cycle, but this is more because of the increasing number of older models owned by users that will be replaced. A Piper Jaffray survey of iPhone buyers who were waiting to buy the new iPhone 7 device on the day of its launch found that 98 percent of buyers were existing iPhone users.
Also, any Galaxy Note 7 user who decides to change phones can choose between Apple and other Android manufacturers.
According to IDC, Apple has the second-largest share of the global smartphone market after Samsung. Samsung’s market cap took a huge hit and dropped by $14.3 billion as investors dumped shares after the announcement of the recall of 2.5 million Galaxy models in 10 countries.