Smartphones now account for 56% of US market, Apple's iPhone at 25% share
Smartphones are now the predominant type of cellular phone in the United States, accounting for more than half according to a new poll, while Apple's iPhone leads all other devices among smartphone owners.
For the first time since the Pew Research Center's Internet & American Life Project began tracking smartphone penetration, that device category has achieved a majority share among American cell phone owners. As of May 2013, 56 percent of cell phone-owning American adults own a smartphone, up from nearly 10 points from February 2012 and more than 20 points from May of 2011. Commensurate with the smartphone's rise has been the a decline in the number of adults who own a different sort of cell phone or no cell phone, now down to 35 and nine percent, respectively.
Just as the smartphone has taken center stage among cell phones, Apple's iPhone has taken center stage among smartphones. Pew's poll found that fully 25 percent of cell phone owners said their device was an iPhone. That figure was up from 19 percent in February 2012 and 10 percent in May 2011.
Pew's figures largely align with other U.S. smartphone market figures. Those have found Apple with a large and growing share of the American smartphone market as well. As is the case with other analyses, Pew's study found that the iPhone's growth has largely come at the expense of second-tier platforms such as BlackBerry and, to an extent, Microsoft's Windows Phone operating system. Devices running Google's Android operating system accounted for 28 percent of American cell phones.
The study also found a number of demographic trends surrounding iPhone ownership. Owners of Apple's smartphone tended to be on the higher end of the income and education spectrum. Thirty-eight percent of respondents who had completed at least four years of college owned an iPhone, versus 29 percent for Android-powered phones.
With regard to income, Pew's study found that households bringing in more money tended to have more iPhone users. Twenty-five percent of respondents from households making between $50,000 and $75,000 said they were iPhone users, and 40 percent of respondents pulling in $75,000 or more owned iPhones. Nearly half (49 percent) of cell phone-owning respondents with a household income of $150,000 or more were iPhone users.
For the first time since the Pew Research Center's Internet & American Life Project began tracking smartphone penetration, that device category has achieved a majority share among American cell phone owners. As of May 2013, 56 percent of cell phone-owning American adults own a smartphone, up from nearly 10 points from February 2012 and more than 20 points from May of 2011. Commensurate with the smartphone's rise has been the a decline in the number of adults who own a different sort of cell phone or no cell phone, now down to 35 and nine percent, respectively.
Just as the smartphone has taken center stage among cell phones, Apple's iPhone has taken center stage among smartphones. Pew's poll found that fully 25 percent of cell phone owners said their device was an iPhone. That figure was up from 19 percent in February 2012 and 10 percent in May 2011.
Pew's figures largely align with other U.S. smartphone market figures. Those have found Apple with a large and growing share of the American smartphone market as well. As is the case with other analyses, Pew's study found that the iPhone's growth has largely come at the expense of second-tier platforms such as BlackBerry and, to an extent, Microsoft's Windows Phone operating system. Devices running Google's Android operating system accounted for 28 percent of American cell phones.
The study also found a number of demographic trends surrounding iPhone ownership. Owners of Apple's smartphone tended to be on the higher end of the income and education spectrum. Thirty-eight percent of respondents who had completed at least four years of college owned an iPhone, versus 29 percent for Android-powered phones.
With regard to income, Pew's study found that households bringing in more money tended to have more iPhone users. Twenty-five percent of respondents from households making between $50,000 and $75,000 said they were iPhone users, and 40 percent of respondents pulling in $75,000 or more owned iPhones. Nearly half (49 percent) of cell phone-owning respondents with a household income of $150,000 or more were iPhone users.
Comments
So ~half of all smartphones are iPhones. But but but but Android just shipped 80% of all smartphones!
The graph says why iPhone 5C is needed. At least 5C should stop the cheap junk Android mobile from taking the market share!
But... But... But... Apple should not have made cheaper phone! its not its way.
According to the study well-to-do urban whites, those making $150K or more, are the group most likely to use an iPhone. Poor African-Americans are in the group most likely to use an Android smartphone. Further, there's little difference in Android use across income categories unlike iPhone owners which isn't what some might expect. An affluent Android using individual is reportedly as likely to have one as someone making 40K a year. To me that might indicate that it's not necessarily uneducated poor people reluctantly buying Android as much as something else. That "something else" is perhaps the iPhone being considered a symbol of status for the wealthy white males IMHO.
http://www.pewinternet.org/~/media//Files/Reports/2013/PIP_Smartphone_adoption_2013.pdf
I started a conversation with another member here a couple days ago about this report. He was right that AI would get around to writing up an article about it within a few days.
Obviously untrue, of course.
Whoever said these guys couldn't tell jokes…
I love how, in response to a report that the iPhone makes up 25% of ALL cellphones (not just smartphones) the response is "rich" (and I use that term loosely. $150K is not exactly "rich" - no matter what our government and media (all of who make more than that) try to convince us of) white men are why. Please. These rich white men can't be the 1% AND make up 25% at the same time. (Ok, technically it is possible, but there are far more non rich people with a cellphone, so my point is still valid).
Sorry for the political rant.
Remember when Steve Jobs said that Apple was hoping to get 1% of the cellphone market in the first year of the iPhone? Some people didn't even think it was possible given the size of the market. Now they have 25x that.
Three days ago, AppleInsider had iPhone at 40% of the US smartphone market, with Android declining. It might be nice if you tried to relate one thing you say to the next.
Appleinsider says nothing (well, other than DED's screeds on the omnipotence of Apple), it just repeats what others are saying.
And, if you do the math they have 44% based on the above data. Given the likely differences in measuring, this is within the margins of error.
The graph says why iPhone 5C is needed. At least 5C should stop the cheap junk Android mobile from taking the market share!
But... But... But... Apple should not have made cheaper phone! its not its way.
Well, that last 44% of the market is made up of people who don't/can't use smart phone features or afford a subsidized plan. Makes no sense for them to move off of a $100 or cheaper feature phone on a prepaid plan onto a $625 iPhone or a commitment to spend 2400 over 2 years....
When most US households have less than $60,000[2010] in income and 3 mouths to feed.... having a computer in your pocket isn't the highest priority.
Now the question is, if you can sell a phone that is $350 in the US, how much market will you get. Will you get a vast majority of the $100K-$149K households (~12% of US households) of the who were quite miserly in the past?.
Note: the fact that Apple being in 1/2 of the 150K households... sounds big, but in reality... that's only nets 5% of the households in the US.
According to the study well-to-do urban whites, those making $150K or more, are the group most likely to use an iPhone. Poor African-Americans are in the group most likely to use an Android smartphone. Further, there's little difference in Android use across income categories unlike iPhone owners which isn't what some might expect. An affluent Android using individual is reportedly as likely to have one as someone making 40K a year. To me that might indicate that it's not necessarily uneducated poor people reluctantly buying Android as much as something else. That "something else" is perhaps the iPhone being considered a symbol of status for the wealthy white males IMHO.
http://www.pewinternet.org/~/media//Files/Reports/2013/PIP_Smartphone_adoption_2013.pdf
Pew reports are fantastic. You can't argue with their data. Their methods are included right in the reports, something that is missed in summaries like this story in AI. And unfortunately it's too easy to jump to conclusions without the full report.
I'm glad you're using the word "perhaps". I hope no one glosses over that. There may be a variety of factors here including (or instead of) the fact that it's considered a status symbol. There's no reasons (but there is a little speculation) in this report.
I love how, in response to a report that the iPhone makes up 25% of ALL cellphones (not just smartphones) the response is "rich" (and I use that term loosely. $150K is not exactly "rich" - no matter what our government and media (all of who make more than that) try to convince us of) white men are why. Please. These rich white men can't be the 1% AND make up 25% at the same time. (Ok, technically it is possible, but there are far more non rich people with a cellphone, so my point is still valid).
Sorry for the political rant.
150K is not 'rich' but it's significant in that 150K is the top Quintile of income in the US. in other words, you may not be rich, but you make more than 80% of the rest of the households in the US. AND if you look at the stats, your households are larger (you don't buy 1 iPhone... you buy 3)
There a a lot of non-rich people with a cell phone. what this is alluding to is most with a 'SMARTPHONE' well above the median household income. and MOST with a iPhone are above the 80% line.
I don't feel this is a 1% issue (the 250K household income the 97.5 level), but the Pew Foundation (from what I see they are focused on income disparities in the US) is pointing out [the obvious fact] that it requires a lot of income [and/or a lifestyle accustomed to Internet connectivity] to justify a smartphone in the US market right now.
What I read is: You need an income of almost 50K a year to afford an iPhone. (65% of all iPhones are sold to households with more than 50K... without the details, my assumption is that there is a floor (40K? 35K?) where a single person's salary really can't justify a $625 phone or a $2400 2 year spend on a phone.
My question relating to apple's strategy is: What is apple's 'affordability' quotient for the new iPhone 5c (or whatever is the lowest price unsubbed phone). Will it make it 'affordable' for a $40K salary person and looking at demographics, that's 10% of the population. Extending the 25% market capture down to that 10% of the population is another million in phone sales (500K a year assuming the classic 2 year lifecycle), and again, getting them into the Apple Ecosystem.
Pew reports are fantastic. You can't argue with their data. Their methods are included right in the reports, something that is missed in summaries like this story in AI. And unfortunately it's too easy to jump to conclusions without the full report.
I'm glad you're using the word "perhaps". I hope no one glosses over that. There may be a variety of factors here including (or instead of) the fact that it's considered a status symbol. There's no reasons (but there is a little speculation) in this report.
There a lot of factors for the purchase decision... But what we are seeing is
- people kicking the tires on a smart phone choose on price
- people learning what they need after their first smartphone buy Apple.
- Apple's smartphone functionality is attractive and retains value (why are 80% of smartphone activations are Android, but 44% of 'active' smartphone users us Apple... Because apple phones are regifted, and Androids thrown away... zero retained value).
- Apple needs to make sure for the vast majority, 'their next smartphone' has an iPhone in their price range, as it appears that at higher disposable incomes - push that 'base' affordability down, and you open yourself up to more 'switchers.'
No doubt someone will. I won't be surprised if mein Schatten chimes in.
The report basically provides solid empirical support for what many of us have been saying here for a while now: iPhone users are more educated, more affluent, and unsurprisingly, (given its association with education and income) more white.
That said, I would actually have thought that it would be even more skewed in those three dimensions than is indicated by the Pew study (whose research, to echo someone else's comment, is absolutely first-rate; especially compared to the tripe put out by the various consulting firms).
Note: the fact that Apple being in 1/2 of the 150K households... sounds big, but in reality... that's only nets 5% of the households in the US.
'Households' tend to have more than one phone, typically 2 to 3: that alone would make the share in $150K+ households 10% - 15% right there.
Remember when Steve Jobs said that Apple was hoping to get 1% of the cellphone market in the first year of the iPhone? Some people didn't even think it was possible given the size of the market. Now they have 25x that.
No, Steve's 1% target was the global cellphone market. These figures are US only.
There a lot of factors for the purchase decision... But what we are seeing is
...- Apple's smartphone functionality is attractive and retains value (why are 80% of smartphone activations are Android, but 44% of 'active' smartphone users us Apple... Because apple phones are regifted, and Androids thrown away... zero retained value).
...
Maybe Android phones are tossed after use and on to the next one. Maybe they break more often and get replaced which equals an activation.
For sure that iPhones are passed down from user to user once someone upgrades. It is time for me to upgrade and my daughter who will be a first time user would like my 3GS for calling and texting. It still works and is a good phone after 3 1/2 years of use.
So ~half of all smartphones are iPhones. But but but but Android just shipped 80% of all smartphones!
You are right on both counts. Apple has less than half of the market share in its best market by far- the US market. In many other countries Apple has single digit or low double digit market share- so yes on the global front Android is selling far more units and the 80% number you give is probably about right.