Smartphone users in US show a dull quarter

LOS GATOS, CA: US smartphone demand in Q2 dropped steadily and is down eight per cent compared to June 2014 according to a new report from Argus Insights which reveals that despite the introduction of the new flagship phones from Samsung and ongoing consumer interest in the latest iPhones, since January 2015 to June consumer demand and interest has fallen off significantly.

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.

In the ongoing battle for the hearts and minds of smartphone consumers between Apple and Samsung, Q2 US consumer data reveals that despite the release of two flagship phones, Samsung failed to wow 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.”