Alphabet (NASDAQ:GOOGL) Inc.'s Google Pixel has made significant strides in the Japanese market, eroding the dominance of Apple Inc (NASDAQ:AAPL).'s iPhone, according to data released on Thursday. The Google-owned smartphone brand has achieved a record 12% market share in the June quarter, marking a sixfold improvement from the same period last year.
The surge in Google Pixel's popularity comes after years of underwhelming performance and misfires in the Japanese market. Counterpoint Research, which provided the data, did not detail what led to this sudden upswing. It is clear that Google Pixel's gain has come at the expense of iPhone's market share.
Apple Inc.'s iPhone, which has long been a dominant player in Japan, saw its market share drop almost equivalently from 58% to 46%. According to InvestingPro data, Apple's market cap stands at a staggering $2.66 trillion with a P/E ratio of 28.48, indicating a strong market performance despite the recent decline in Japan. This decline coincides with the increasing price tags of iPhone models, although it remains unclear whether there is a direct correlation between these two events.
InvestingPro Tips reveals that Apple has been aggressively buying back shares and yields a high return on invested capital. Additionally, the company's strong earnings should allow management to continue dividend payments. Apple has raised its dividend for 11 consecutive years, which may be an attractive feature for investors.
This shift in market dynamics indicates a changing landscape in Japan's smartphone industry. Although Apple still retains a significant portion of the market, the rise of Google Pixel suggests that Japanese consumers are exploring other options.
Google, with a market cap of $1.65 trillion and a P/E ratio of 27.66 according to InvestingPro data, has seen a large price uptick over the last six months. The company holds more cash than debt on its balance sheet and has been a prominent player in the Interactive Media & Services industry.
InvestingPro Tips for Google highlights that the company yields a high return on invested capital and operates with a high return on assets. However, it's worth noting that Google does not pay a dividend to shareholders, unlike Apple.
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