Apple and Samsung are leaving competitors LG and Motorola in the dust. New research from Parks Associates shows, for example, that LG has dropped to just 9% of consumer-reported brand share, behind Apple (47%) and Samsung (29%).
Samsung models, despite quality issues related to its Galaxy Note line last year, have sold better than their predecessors. In addition, a majority (65%) of Samsung smartphone users have a model more than two years old, which means they are poised to upgrade.
However, Apple’s lead is apt to continue in the coming years, as 75% of iPhone users will also soon look to upgrade. The company enjoys not only a sizeable lead in market share but also a tight replacement cycle. The research found that the iPhoneX’s powerful on-device artificial intelligence and facial recognition abilities will drive purchases of the $1,000 model, usurping the iPhone 8. Although the more affordable model provides an attractive mix of features, it doesn't significantly differentiate itself from the iPhone 6 and the iPhone 7.
Other competitors’ market share is languishing, with HTC falling from fourth in share of the installed base at 9% in 2012 to sixth in 2017 with just 2%. ZTE's market share has increased from 1% in 2015 to 2% in 2017. The report noted that Huawei, which purchased Ericsson in 2012, could pose a threat to LG, Motorola and ZTE as it expands its U.S. sales channels in late 2017 and 2018.