20% Of All US Consumer Technology Sales Revinue Is For Apple Products - And Apple Stores Are The 3rd Largest Consumer Technology Retailer In The US

Apple Stores Are The 3rd Largest Consumer Technology Retailer In The US

The NPD Group on Tuesday (2/19/13) revealed that Apple accounted for 19.9 percent of all domestic consumer technology sales, based on revenue, from last year. That number was up from the 17.3 percent share Apple took in 2011.

"While sales fell in consumer technology for the second consecutive year, there was an uptick in Q4 which is cause for optimism," said Stephen Baker, vice president of industry analysis at NPD. "After struggles with declining categories, and increasingly saturated markets over the last few years, fourth quarter’s results may be the first sign that even as a mature industry consumer technology can grow again, albeit with a very different dynamic than in previous growth spurts."

Basically, the top five companies by sales revenue, saw their share of revenue fall in 2012, but Apple and Samsung both saw revenue gains. Together, Apple and Samsung accounted for $6.5 billion in increased sales in 2012. Meanwhile, the rest of the consumer technology industry saw sales decline by almost $9.5 billion in the U.S.

Apple is clearly the leader with 19.9% of sales, with Samsung following with 9.3%. despite the gains seen by Apple and Samsung, retail sales in U.S. consumer technology declined 2 percent to $143 billion in 2012, according to NPD. Sales were also off less than 1 percent in 2011.

"The fact is that the stellar growth of the past few years has made growth today more difficult," Baker said. "Most market segments have high penetration rates and the demand for additional devices is slowing, or declining. Tablets and smartphones have been able to stimulate demand for additional devices, but unfortunately it hasn’t been enough, yet, to sustain positive growth trends."

The only two categories in the top five to see year-over-year growth were tablets and smartphones, markets where Apple competes with the iPad and iPhone.

The one market among the top five where Apple does not have a presence is flat-panel television sets, though there have been indications for years that the company may be interested in entering that market. NPD said that in 2012, HDTVs were "mired in a cycle of declining prices and weak volume."

While smartphone sales were up 25 percent and tablets surged 42 percent, flat-panel TVs saw sales decline by 7 percent. Notebook computers were also off 9 percent at U.S. retailers in 2012, while desktops slid 11 percent.

Samsung accounted for $6.5 billion in increased sales in 2012

Samsung Will Widen the Smartphone Sales Gap with Apple

Apple Inc is expected to fall further behind Samsung Electronics Co Ltd in global smartphone sales in 2013, with Samsung expecting 35 percent growth, helped by a broad new line of products lineup.

Apple is not going to be just sitting still.

It is rumored that Apple might roll out a smaller, cheaper "iPhone Mini" in 2014 in order to grab market share by targeting lower-end smartphones users.

"We expect Samsung to slightly extend its lead over Apple this year because of its larger multitier product portfolio," Neil Mawston, executive director at Strategy Analytics, said in an e-mail interview with Reuters.

Global smartphone shipments will jump 27 percent to 875 million this year, slowing from last year's torrid 41 percent pace as growth is easing in many key markets such as North America, China, the developed economies of Asia, and Western Europe, Mawston said.

Samsung is forecast to sell 290 million smartphones in 2013, up from a projected 215 million in 2012 - this according to Strategy Analytics.

By comparison, Apple's smartphone sales are projected to reach 180 million this year, up 33 percent from last year, slightly trailing Samsung's 35 percent increase.

This will give Samsung a 33 percent share of the 2013 smartphone market, up from last year's estimated 31 percent, while Apple will hold 21 percent, versus last year's 20 percent.

In the 1970's we had the 'Oil Gap', but in 2013 the gap everyone is talking about is the 'Smartphone Sales Gap'.

SLICING UP THE PIE

Samsung Electronics is the largest and most valuable company in Asia, and Apple is the world's most valuable technology company - have been battleing fiercely in the global mobile device market, which both companies dominate. In a twist of humor though, Samsung is also a supplier to Apple.

In April, Samsung may launch the Galaxy S IV, a new version of its flagship smartphone, as well as the Galaxy Note III phablet (phone tablet) and a series of other new smartphones over the course of 2013.

"Samsung plays in more segments and this should enable it to capture more volume than Apple (assuming Apple does not launch an 'iPhone Mini' this year)," Mawston said.

Brian J. White, a researcher at Topeka Capital Markets, on Wednesday raised the possibility that Apple may launch a smaller and lower-priced iPhone - the iPhone Mini - to further penetrate markets such as China and India.

"Apple will launch the next iPhone, the iPhone 5S, in May or June, and offer more options in screen sizes. This would eventually open up the possibility for the iPhone Mini", he said.

But Mawston said the iPhone Mini was not expected to hit the market until after this year.

"We think Apple will have to launch an 'iPhone Mini' at some point over the next three years to address the hundreds of millions of prepaid users worldwide that cannot afford the current iPhone," he said.

"The iPhone 5 is growing fast and profitably right now, so there is little incentive for Apple to launch an 'iPhone Mini' this year.

"We expect the iPhone Mini to be more likely next year, in 2014 when ... Apple will be forced to discover fresh growth streams," he said.

Samsung Electronics, once a distant second place in the smartphone market, has quickly surpassed Apple as the world's largest smartphone maker.