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Judging by the latest IDC phone sales report, Apple has now found the point where iPhone prices rises meet customer resistance.

The last two product cycles have seen Apple raise iPhone prices faster than the rate of inflation.

A few anomalies like the troublesome Samsung Galaxy Fold aside, Apple prices have also gone up faster than phones from rival manufacturers. The gap between Apple’s most expensive iPhone and the most expensive mainstream options from the likes of Samsung and Huawei is higher than ever before.

In New Zealand the Apple iPhone XS Max with 512Gb of storage costs NZ$2800. Huawei’s P30 Pro, with 256GB of storage costs NZ$1500. That’s a fraction over half the price of the top iPhone.

Samsung’s Galaxy S10 with 512Gb of storage is $2100. Three-quarters the price of the iPhone XS Max.

Quality?

You can argue Apple’s phones are better than Huawei’s or Samsung’s. Although many readers would dispute that. You can also argue that an iPhone has greater value than an Android for people who have invested in iOS.

Even so, it can’t be an accident that Apple’s sales have dropped both in absolute terms and relative to the market since those price rises.

That fall is not trivial. IDC’s latest phone sales report shows iPhone unit numbers dropped 30 percent in a year. The report says: “The iPhone struggled to win over consumers in most major markets as competitors continue to eat away at Apple’s market share.”

Apple’s iPhone revenues dropped 17 percent.

Third place

IDC says Apple is now firmly in third place behind Samsung and Huawei. The report says the total phone market dropped 6.6 percent year on year. Apple accounted for two-thirds of that drop.

There is evidence much of this drop was in China.

We can’t know for sure there is a direct link between Apple’s recent rounds of faster than inflation price rises and the drop in sales. But it is a plausible working thesis.

Buoyant

For a while Apple’s faster than inflation price rises meant that the company’s phone revenue remained buoyant as unit numbers fell. In effect Apple users were trading up to more ritzy phones. If that was a strategy, it only worked in the short-term.

One aspect of this is that although Apple’s iPhones are more expensive, they contain more technology and more functionality. This might justify the higher price in some cases.

In recent years Apple’s gross margin has been around the 38 percent mark. That sounds huge, but it’s not unusual in the technology sector. Software companies tend to do better.

The most recent result shows the gross margin has fallen from 38.3 percent a year ago to 37.6b percent. In other words, those higher phone prices are not a simple case of Apple cashing in.

Problems everywhere

Samsung and Huawei both face enormous problems. The Galaxy Fold is a potential disaster for Samsung. Meanwhile Huawei is at the centre of a nasty political row. At some point that could affect the company’s handset sales, at least outside of China.

Apple faces a difficult year. If the folding phones from Samsung and Huawei turn out hits, Apple will be on the back foot in technology terms. There’s also the 5G problem. Apple committed to buying Intel 5G chips. It turns out these don’t work, so Apple has turned back to Qualcomm.

For all these reasons, observers are going to judge the 2019 iPhone launch more carefully than any Apple launch over the past three to five years. It might also pay to take a close look at what Apple does with prices later this year. Another big rise would ring alarm bells.

Research company IDC reports that year-on-year phone sales dropped 6.6 percent in the first quarter of 2019. It’s the sixth quarter in a row to see a drop and the rate of fall is picking up. This time last year sales were down 4.1 percent over the same time in 2017.

Samsung remains the leading phone brand albeit with a falling market share. It has been the top-selling brand for each of the last four quarters. During that period Apple jockeyed for second place with Huawei. The Chinese phone maker is now back in second place.

It’s been tough for everyone. Only two of the top five brands sold more phones in the last 12 months than in the earlier twelve months. Huawei and Vivo, which is not visible in New Zealand, both saw sales increase.

Samsung in the driving seat

Samsung accounts for about one phone in five sold. It’s share nudged down a tick as it sold 6.3 million fewer phones than in the previous year. While the company’s premium phone models, notably the Galaxy S10 and S10+, remain popular, Samsung is losing ground lower down the market.

Huawei is the big winner. The company continued its surge that has propelled it past Apple in terms of unit sales. Year on year sales are up 50 percent. In the twelve months to March 2019 Huawei moved to 19 percent market share. That is closing on Samsung’s 23 percent and comfortably in front of Apple’s 12 percent.

This strong growth took place before sales of the recently announced P30 and P30 Pro models could influence numbers. Based on a comparison of the P30 Pro and the Samsung S10 , Huawei may get nearer to Samsung’s share in the coming months.

Worldwide phone shipments

Company1Q19 vol1Q19 share1Q18 vol1Q18 sharechange
1. Samsung71.923.1%78.223.5%-8.1%
2. Huawei59.119.0%39.311.8%50.3%
3. Apple36.411.7%52.215.7%-30.2%
4. Xiaomi25.08.0%27.88.4%-10.2%
5. Oppo23.17.4%24.67.4%-6.0%
5. Vivo23.27.5%18.75.6%24.0%
Others72.123.2%91.927.6%-21.5%
Total310.8100.0%332.7100.0%-6.6%
Figures from IDC, numbers in millions

Apple phone sales fall

Apple’s four percent fall in market share represents something of a sea-change, but is not as dramatic as it is viewed in some quarters. The company’s share price actually rose after it announced its annual results overnight. Apparently iPhone sales were not as dire as expected. The company aims to make up some of the lost revenue from selling services.

We don’t see much of the fourth and fifth brands in New Zealand. Samsung and Apple dominate the New Zealand market with Huawei challenging for a place at the top table. After that, it’s all rats and mice.

For the record Xiaomi’s market share dropped almost half a percent to eight percent. Vivo added two percent of market share taking it to 7.5 percent. Oppo, which is active in New Zealand, was flat and is now in sixth place with a 7.4 percent market share.

Most of the analysts commenting on the results focused on the way consumers are no longer as quick to upgrade phones to the latest models. This makes a lot of sense. A phone should last from three to four years and, advances in photography aside, today’s phones are often not much better than three-year old models.

When new people enter the phone market, they are no longer coming in at the top, but are buying lower priced models from Chinese brands.

Spark esim Samsung Galaxy Watch 4

Spark is the first New Zealand carrier to support embedded Sim or eSim cards. It’s a version of the Sim card that, instead of slotting in, is hard-wired into some of the latest phones and smart watches.

If you bought a 2018 iPhone, you have an eSim. Likewise it is there in the recent iPad Pro and Apple Watches. There’s also an eSim in the Samsung Galaxy Watch 4.

The list of eSim-equipped devices is growing fast, but for now Spark only supports a handful of devices: Samsung Galaxy Watch 4 and iPhone XR, XS and XS Max. Owners of other suitably equipped devices will need to wait.

eSim in Galaxy Watch 4

Spark timed today’s launch to coincide with the launch of the Galaxy Watch 4. Spark offers what it calls the Unlimited Wearable Plan to customers buying the watch but they must also have a Spark phone plan.

The Unlimited Wearable Plan gives customers data, calls and texts for $15 per month. Spark says unlimited data, calls and texts which means after you’ve downloaded 22GB  Spark will drop the data speed to a lower rate.

If you manage to get through more than 22GB of data on a watch you deserve a medal, especially as you must already have a phone to get the Spark plan.

New iPhone owners can activate their eSim with Spark using a QR code. If you already have a suitable iPhone, you’ll need to visit a Spark store to have your current mobile number and plan switched to the eSim. This leaves the card slot free to take another number or plan. It doesn’t have to be with Spark.

This is a beach head for the eSim in the New Zealand market. Spark’s move will spur its rivals to get a move on with their plans. Vodafone has already hinted it has something on the way.

Lots of reasons to like eSims

One advantage is that there’s no need to stuff around removing and installing fiddly little cards. This is handy for phone owners, but essential in tiny devices like smart watches. It’s also important for industrial users and others wanting to use cellular connections in their Internet-of-Things devices.

Another feature of the eSim is that it allows a phone owner to add a second account, possibly from another carrier. This would be useful if you often travel overseas or if you need to work in a part of New Zealand only serviced by one carrier that’s not your first choice. Some people use this to keep separate work and private connections on a single device.

Spark’s eSim press release.

Apple’s fifth generation iPad Mini packs the power of the iPad Air in a smaller case. That compact size is the secret of the Mini’s appeal.

You may wonder if there’s a market for a 7.9-inch iPad when you can buy a 6.5-inch iPhone. After all, the iPhone XS Max is almost a tablet.

Apple say iPad Mini sales have been steady since the format was first introduced. It’s not for everyone, yet some people who like the Mini are fanatic about their favourite tablet.

One reason is the cost. At NZ$680, the base model iPad Mini costs less than one-third the price of the cheapest iPhone XS Max. It’s not the cheapest iPad, but it’s good value.

Sweet spot

Price is not the only explanation for the Mini’s popularity. The size hits an important sweet spot.

At 7.9-inches, Apple’s 2019 iPad Mini comes in about halfway between the iPhone XS Max and the 10.5-inch iPad Air.

While having a bigger screen than a phone is an advantage, the iPad Mini is still small and light. It weighs 300 grams. It’s handy and very portable.

At a pinch you can fit it in a pocket. OK, a big pocket. Cargo pants could come back into fashion to accommodate iPad Minis. It also slips into a handbag or any other bag. You can hide it in a car glove compartment.

Pythagoras understood

We measure screen sizes across the diagonal. Thanks to Pythagoras’ theorem a 7.9-inch display has 50 percent more viewing area than a 6.4-inch screen. In other words, it’s a big leap.

Among other reasons, the iPad Mini is the right size for people who work on the move. Think of police officers or health professionals. It helps that most people can grip it in one hand.

IPad mini fits one hand

I also find typing on the larger iPad Mini glass keyboard is easier than tapping on a phone screen. That’s because I’m a big bloke with big fingers.

Thumb typing

Apple’s bigger 12.9-inch iPad Pro keyboard works well when laid flat. The Mini keyboard is at its best when vertical. If you hold it up with your hands and hit the keys with your thumbs.

The action is like phone typing, but there’s more room.

This is an effective way of typing when you’re on a crowded bus, train or airplane. I haven’t had the chance to test it on a plane yet. I’m sure if I did I could be productive even in a cramped seat.

The extra screen real estate makes it better than a phone for reading complex information and maps or for inspecting photos. It’s roughly the same size as an e-book reader like the Kindle.

iPad Mini beats phone for web

There’s no question the iPad Mini does a better job of displaying every kind of web or app content better than a phone.

Although you can, at a pinch, run side-by-side apps on the iPad Mini, that’s not its strength. In practice I found I only ever used one app at a time.

In all other respects except the screen, the new iPad Mini uses the same technology as the current iPad Air model. It even has the same A12 chip as the iPhone XR. That means there’s a lot of computing power.

There’s a laminated screen, support for Apple Pencil and True Tone. The last of these means the iPad will adjust screen whites to compensate for lighting conditions. Apple says you get 10 hours battery life. We found that’s about right when we tested the Mini.

Lightning strikes

A couple of quirks: there’s a headphone jack and a lightning port for charging. New Apple devices don’t all have the jack and prefer USB-C over Lightning.

At times the Mini feels more like a big phone than a small iPad1.

The new iPad Mini costs NZ$680 for the basic wi-fi model with 64GB of storage. Boosting the storage to 256GB takes the price to NZ$929. Adding cellular puts another NZ$120 on the price. You might also consider the Apple Pencil at NZ$160.

iPad Mini verdict

My few niggles with the 2019 iPad Mini are minor. The design is the same as seven years ago. There’s less screen and more bezel, the case edges around the screen, than on more modern looking iPads. It also supports the old first generation Apple Pencil, not the new version.

Should you buy the iPad Mini? It’s not the right thing to buy if you’re looking for a laptop replacement. If that’s your goal, get an iPad Air or a iPad Pro model.

If you want a tablet for reading and writing while you’re on the go, it’s ideal. The iPad Mini is a good choice for taking notes and consuming media. It’s also a great upgrade for owners of long-in-the-tooth first generation iPad Minis. I suspect this will follow its ancestor to become another classic.


  1. For perspective, Huawei’s Mate X folding phone has an eight-inch screen. ↩︎

Apple AirPods

Longer battery life, new charging case, hands-free Siri. AirPods 2 are a refreshed version of Apple’s popular wireless earphones.

From the outside, you’d be hard pressed to tell Apple’s updated AirPods from the model they replace. The two look identical.

Identical looks mean they also have an identical fit. If AirPods didn’t sit comfortably in your ears last time around, the new model changes nothing. Likewise if you had a problem with them falling out your ears, that’s still going to plague you1.

There’s also no discernible difference between the sound on the new and old models when it comes to playing music. You still get a full, clear sound.

A single AirPod

AirPods 2: Good sounds

The bass is not too heavy and the treble stays under control. You don’t get mentally exhausted by jangling highs. All the music I tried sounded crisp. The AirPods pick up a surprising amount of detail. They cope well with a range of musical genres.

There’s no active or passive noise cancellation and the AirPod design does little to block out excessive background noise. I haven’t had an opportunity to test them on a flight yet, but they work well on public transport.

When AirPods first appeared, I passed because recently purchased fancy noise cancelling over-the-head headphones. While the headphones are still more comfortable for long listening sessions, upwards of, say a couple of hours, the pods are so light and unobtrusive that, at first, it’s almost like you’re not wearing anything at all.

Upgraded chip

Apple says the newer AirPods 2 have an upgraded chip which improves performance in some areas: Longer battery life for voice phone calls, faster switching between devices and lower latency.

Because I’m new to AirPods I can’t tell you if the experience is better. What I can tell you is the experience is easily as good as I’ve had from other bluetooth speakers, earbuds and headphones.

With the earlier AirPods you had to double tap to launch Apple’s Siri voice interface. Now you can start the app by saying “Hey Siri”. This is how it works with the iPhone, iPad and Mac. While I’m too embarrassed to do this in public, it works well. Telling Siri to play your music choices is a useful feature when your hands are busy.

Like the earlier AirPods, your music will automatically pause if you remove one from an ear.

Qi charging

The wireless charging case work with Qi. This is a standard, you’ll find it on some iPhones and Androids. It means you can use the charging pads you already have to give your AirPods more juice. In practice it works well, although it isn’t fast.

It takes between three and four hours to fully charge the AirPod case using wireless and around two hours if you stick with the lightning connector.

AirPods show the best of Apple’s approach to technology. In use they are radically simple, so simple and easy to use they merge almost seamlessly into the background of daily life. After a few days you almost forget what life was life before you had them.

AirPods 2 verdict

There are few reasons to upgrade from first generation AirPods and even fewer if you’re not going to use wireless charging. That said, there are stories that ageing AirPods suffer from worn-out batteries, so there will be upgraders.

If you’re the kind of person who aims to impress by owning the latest fashionable kit you’ll be disappointed. While AirPods are something of a fashion accessory, there’s no extra kudos showing off the latest version.

One weakness; AirPods don’t fit everyone and they can fall out of your ears if you are active.

They’re not cheap at NZ$350 for a pair of AirPods 2 with a wireless charging case or NZ$280 for the non-wireless case. Yet, you’ll struggle to find better wireless earphones. They have plenty of battery life and the sound is as good as you’ll find anywhere else.


  1. If you are new to AirPods and wonder if they will fit, there’s an easy way to find out. The earpieces are more or less than same size and shape and those on the wired earbuds that come with iPhones. So long as they fit your ears, AirPods will be fine. ↩︎