Title: US iPhone Market Share Surges to 55% Amidst Decline in Android Shipments
The US iPhone market experienced a significant surge in market share, reaching 55% in the second quarter (Q2). This growth can be attributed to a sharp decline in shipments of Android smartphones, according to a market intelligence report by Counterpoint Research.
The overall US smartphone market faced a challenging Q2, with a notable decline of 24% in shipments compared to the previous year. Major Android brands bore the brunt of this decline, further emphasizing the iPhone’s market dominance.
Consumer demand for smartphones remained tepid throughout Q2, with a summer sales slump that arrived earlier than usual. Despite favorable inflation numbers and a strong job market, consumers hesitated to upgrade their devices due to market uncertainty.
Among the Android brands, Alcatel experienced the steepest decline, with a 69% decrease in shipments. Samsung and Motorola also faced significant drops of 37% and 17%, respectively. However, Google emerged as the only winner, thanks to the successful launch of the Pixel Fold.
Although Apple’s iPhone shipments saw a 6% decline year-on-year, it was significantly less severe compared to most Android brands. This allowed Apple to increase its US market share by an impressive ten points, climbing from 45% in Q2 of the previous year to 55% in the corresponding quarter this year.
On a quarterly basis, Apple’s market share showed a more modest increase from 52% in Q1 to 55% in Q2. Counterpoint Research emphasized that this growth was largely influenced by carrier promotions.
Apple’s resilience can be attributed to robust promotions offered by Verizon, AT&T, and T-Mobile across both postpaid and prepaid plans. These carriers continued to provide substantial promotional credits of $800 or more for the latest iPhone 14 models, while previous generations of iPhones received steep discounts in the prepaid segment. The overall promotional activity remained strong for Apple, with no weakness observed.
Interestingly, the trend of heavy subsidies in prepaid channels extended beyond iPhones. Counterpoint Research reported that both the Google Pixel Fold and Pixel 6a experienced similar subsidy programs, contributing to increased sales in the prepaid market.
The US smartphone market remains highly competitive, yet Apple’s ability to maintain its market share amidst a declining market underscores the brand’s popularity and customer loyalty. The decline in Android shipments, coupled with strategic carrier promotions, has played a vital role in Apple’s continued success. As the market dynamics evolve, it will be interesting to see how other Android brands respond to this changing landscape.
In conclusion, Apple’s US iPhone market share surged to 55% in Q2, driven by a decline in Android shipments. While Apple faced a modest decline in iPhone shipments, it was significantly less severe compared to its Android counterparts. The company’s increased market share can be attributed to carrier promotions that incentivized customers to choose iPhones over Android alternatives. As the smartphone market continues to fluctuate, Apple’s resilience and market dominance remain noteworthy.
