Why Windows Phones outselling iPhones in some markets means nothing
Microsoft PR exec Frank Shaw is drawing some attention this week following this blog post touting (among other things) the traction Windows Phone is gaining around the world. Windows Phone “has reached 10 percent market share in a number of countries,” Shaw claims, shipments are outpacing those of the iPhone in seven markets.
But a closer look from the New York Times reveals that Shaw’s claim isn’t all that impressive. Writer Nick Wingfield contacted IDC and discovered the markets where Windows Phone shipments outperform iPhone shipments are Argentina, India, Poland, Russia, South Africa, Ukraine, and a group of smaller Eastern European nations.
While most of those are minor markets, India caught my attention here: It’s already the fifth-largest smartphone market in the world despite only seeing-digit penetration, so it’s a huge opportunity for handset vendors. The iPhone hasn’t gained much traction there because it’s such a price-sensitive market, and Apple has chosen to focus on maintaining higher margins in more mature markets. That’s changing this year, though, as All Things D recently documented. Apple is dramatically ramping up shipments this year of the iPhone 5 as well as previous (less expensive) models, and it is offering installment-based payment plans to reach less affluent users. Which is why I don’t expect Windows Phone to continue to beat the iPhone in one of the world’s most promising smartphone markets.