Apple tipped for strong growth in South Korea

The vendor is expected to sell 2.9 million iPhones in South Korea this year, giving it a market share of about 15 per cent, sources told the news agency. At the end of November it had sold 2.6 million iPhones.

Sales of iPhones account for more than 75 per cent of Apple’s revenue in Korea, the local sources said.

Apple launched the iPhone 7 in the country in October and has the opportunity to take share from market leader Samsung in its home country after its Galaxy Note 7 debacle. The Cupertino-based vendor is building its first flagship retail store in Seoul, which is expected to be completed in November 2017 and is located across the street from Samsung’s headquarters.

The US vendor’s market share in South Korea peaked at 33 per cent in Q4 2014 following the launch of the iPhone 6, according to Counterpoint.

Samsung and LG now have a combined market share of more than 80 per cent. LG had a 19 per cent market share in Q2.

South Korea and Japan, where the iPhone had more than a 50 per share for the three-month period ending 30 October, are rare growth markets in Asia for Apple.

iPhone shipments in China plunged 31 per cent to 7.5 million units in Q3, with Apple’s market share falling to 6.2 per cent from 10.3 per cent in Q315, according to Strategy Analytics. Earlier this month Apple reportedly reduced orders from component suppliers for its new iPhone 7 models due to weaker than expected demand in many markets, including China.