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Android loses ground, Apple's iPhone takes 33% of US smartphone market

post #1 of 58
Thread Starter 
Domestic shipments of Android-based smartphones declined year over year in the second quarter, while Apple saw its iPhone sales grow by 2 million units.

The latest data from Strategy Analytics, released on Monday, reveals that Android's share of smartphones shipped in the second quarter of 2012 was 56.3 percent. Though Google's platform still has a majority of the market, its share was down from the 60.6 percent of smartphone shipments Android accounted for in the second quarter of 2011.

Android's losses proved to be Apple's gain, as U.S. sales of the iPhone increased from 5.9 million in the second quarter of 2011 to 7.9 million in the same period in 2012. The research firm found that the iPhone accounted for 33.2 percent of all smartphones shipped in America in the second quarter of 2012.

Strategy Analytics said the numbers show that Android's market share in the U.S. is peaking while Apple's iPhone continues to gain ground. Apple is expected to see it share of the market grow even more in the coming months, as the company is expected to launch a next-generation handset this fall.

Also losing share in the second quarter was Research in Motion's BlackBerry OS, which slid from a 10.5 percent share in 2011 to 6.5 percent in the second quarter of 2012.

Strategy Analytics


In all, total domestic smartphone shipments were down 5.4 percent year over year over the three-month quarter. That's a major change from the 70.1 percent year-over-year growth the U.S. smartphone business saw in 2011.

Strategy Analytics said the primary reason for slowdown in the smartphone market is a volatile economy, as well as maturing penetration of smartphones among mobile subscribers. In addition, the firm said major operators are tightening their upgrade policies to improve profits.

Apple announced last week that it sold a total of 26 million iPhones in the June quarter, which was a 28 percent increase from the previous year. With 7.9 million of those sold in the U.S., a total of 3.7 million iPhones were sold through carrier AT&T, 2.7 million were activated at Verizon, while 1.5 million customers chose Sprint.
post #2 of 58

"APPLE. IS. DOOMED."

 

"But Android is outshippingselling Apple!"

 

No, seriously, where are all those Android phones going?

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post #3 of 58

Wow, the difference between the US and the rest of the world is very stark. 

 

I suspect it largely comes down to a combination of (1) price related issues and (2) completeness of Apple's ecosystem in the US. 

 

Regarding the first, the issue is that in the US, the perceived difference in price between Android phones and iPhones isn't as large, since the carriers absorb a big chunk of the difference. Internationally, end-users feel the full difference in phone prices. 

 

Regarding the second, Apple's whole "ecosystem" is just a lot better developed in the US (completeness of the iTunes and App stores, and just as importantly, the pervasiveness of the retail stores). 

 

If Apple can get out lower cost iPhone models internationally and build up the ecosystem, then perhaps Apple can replicate their success in the US globally. 

post #4 of 58

Just about every Android-using individual I know hate their phones.  Pick whatever multitude of reasons there are from bad battery life, build-quality, support, OS issues, etc... It's all covered.

It was usually their first smartphone experience and was sold to them usually by some pimple-faced Android fanboy at the wireless store.  The first thought after a couple months - and seeing me actually using my iP4 instead of babysitting a horrible Android phone - they eventually say that their next phone will be an iPhone.  Simply because it works great, looks great, and it's easy to use.  Everything that Android is not.

I'm keeping my fingers crossed that the Apple/Scamsung trial going on today puts Samsung (and other iPhone copyists) on notice.

post #5 of 58
I'm more interested in why the YoY adoption of smartphone are down about 6%.

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post #6 of 58
Quote:
Originally Posted by Tallest Skil View Post

"APPLE. IS. DOOMED."

 

"But Android is outshippingselling Apple!"

 

No, seriously, where are all those Android phones going?

The rest of the world. 

post #7 of 58
Quote:
Originally Posted by Blastdoor View Post

Wow, the difference between the US and the rest of the world is very stark. 

 

I suspect it largely comes down to a combination of (1) price related issues and (2) completeness of Apple's ecosystem in the US. 

 

Regarding the first, the issue is that in the US, the perceived difference in price between Android phones and iPhones isn't as large, since the carriers absorb a big chunk of the difference. Internationally, end-users feel the full difference in phone prices. 

 

Regarding the second, Apple's whole "ecosystem" is just a lot better developed in the US (completeness of the iTunes and App stores, and just as importantly, the pervasiveness of the retail stores). 

 

If Apple can get out lower cost iPhone models internationally and build up the ecosystem, then perhaps Apple can replicate their success in the US globally. 


Isn't the low-cost issue a moot point?  I'm not sure how the international market is, but here in the US they are selling the 3GS for free, the iP4 (not 4S) for $50.00 now.  I would think they are doing something similar overseas right? 
 

post #8 of 58
Quote:
Originally Posted by Blastdoor View Post

Wow, the difference between the US and the rest of the world is very stark. 

Yes, it is. Most likely, accounted for almost entirely by China and India. Apple is not available (yet) in the largest carrier there, with 600+M subscribers. In India, Apple is simply too high-priced for the average consumer, and that segment is dominated by Samsung.

 

Watch what happens to Android numbers when these two markets turn. I'll bet it's Samsung's worst nightmare.

post #9 of 58
Quote:
Originally Posted by sflocal View Post


Isn't the low-cost issue a moot point?  I'm not sure how the international market is, but here in the US they are selling the 3GS for free, the iP4 (not 4S) for $50.00 now.  I would think they are doing something similar overseas right? 
 

Outside the US you pay full price as carriers do not subsidy phones

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post #10 of 58
Originally Posted by daylove22 View Post
Outside the US you pay full price as carriers do not subsidy phones

 

And that's not true, but the sentiment is there.

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post #11 of 58
Quote:
Originally Posted by SolipsismX View Post

I'm more interested in why the YoY adoption of smartphone are down about 6%.

Well...the article says:

"Strategy Analytics said the primary reason for slowdown in the smartphone market is a volatile economy, as well as maturing penetration of smartphones among mobile subscribers. In addition, the firm said major operators are tightening their upgrade policies to improve profits."

post #12 of 58
Quote:
Originally Posted by AppleGreen View Post

Well...the article says:
"Strategy Analytics said the primary reason for slowdown in the smartphone market is a volatile economy, as well as maturing penetration of smartphones among mobile subscribers. In addition, the firm said major operators are tightening their upgrade policies to improve profits."

I read that but it seems like a canned response. We've had economic slowdown and a volatile economy for quite awhile yet this segment has grown incredible fast. Perhaps it's reached it's saturation point. If so, then the dumbphone market isn't going away for some time as I think the US is only slightly over 50% on smartphones.

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post #13 of 58

The -5.4% in smartphones sales is an interesting stat.

post #14 of 58

Not bad. 

 

At most, 3 iPhone models, all under the same roof, competing with a flood of Android devices, from the decent to the downright garbage, at all price points. 

 

And Apple, with *just* that, manages 33% US share. 33% share of THE single most important market on the planet when it comes to tech. 

 

It speaks to the strength of Apple's product and its supporting ecosystem. It's not for nothing that Apple bitch-slaps every other manufacturer and mobile OS when it comes to consumer satisfaction, year after year. 

 

iOS is "stale"?  No, kids. iOS is PROVEN. Apple nailed it form Day 1. Which is why today it's the only truly viable mobile OS (especially because it is the ONLY one that is actually successful on a tablet.) And what is proven to *that* degree is as close to perfection as you can get. Doesn't need a lot of changing, except when Apple feels like it (and their instincts are pretty damn good.) And it runs on beautiful hardware. 

post #15 of 58
Quote:
Originally Posted by Blastdoor View Post

The rest of the world. 

Those are US sales number :)

post #16 of 58

Android’s recent numbers are naturally lowered by pent-up anticipation for future products.... the new iPhone and 8” iPad.

post #17 of 58
Quote:
Originally Posted by Blastdoor View Post

Wow, the difference between the US and the rest of the world is very stark. 

 

I suspect it largely comes down to a combination of (1) price related issues and (2) completeness of Apple's ecosystem in the US. 

 

Regarding the first, the issue is that in the US, the perceived difference in price between Android phones and iPhones isn't as large, since the carriers absorb a big chunk of the difference. Internationally, end-users feel the full difference in phone prices. 

 

Regarding the second, Apple's whole "ecosystem" is just a lot better developed in the US (completeness of the iTunes and App stores, and just as importantly, the pervasiveness of the retail stores). 

 

If Apple can get out lower cost iPhone models internationally and build up the ecosystem, then perhaps Apple can replicate their success in the US globally. 

 

From what I understand the US market is almost entirely contract based which is why the iPhone does well because it's heavily subsidised by the carriers making it price competitive with the Android devices.

 

Outside the US the Prepaid Pay As You Go market is a lot more prevalent. Apple does not do well in this market because the iPhone unsubsidised is simply too expensive for most PAYG users. I suspect that will change if Apple decides to reposition the iPhone 3GS to address this market with significant price reductions. That has the potential to dramatically increase the iPhone market share outside the US, albeit probably at a lower margin per unit.

 

It's also worth remembering that the US and Europe has a good selection of content available in the iTunes Store. That has not been the case in many other countries however until recently. Many countries around the world have only had access to Apps or Music but certainly no video content. Obviously as more countries get more content it makes the iPhone more attractive in those countries.

post #18 of 58
Quote:
Originally Posted by Tallest Skil View Post

"APPLE. IS. DOOMED."

"But Android is outshippingselling Apple!"

No, seriously, where are all those Android phones going?

Andy Rubin's address, to be counted by the Google activation counting machine.

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post #19 of 58

While the less smartphones are interesting- the great stat is that iPhone adoption improved and there is nothing Android can do to spin it.

 

They can say:

 

A- Most all Blackberry users left and went to iPhone, and only some Android users went to iPhone

or

B- Blackberry users went to Android, and a crap-ton of Android users went to iPhone

 

Either way- iPhone wins.

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post #20 of 58
They are measuring "Smartphone Operating System Share" but excluding the iPad, which also runs iOS, a smartphone operating system. WTF

That may explain Apple's disappointing results as measured by these numbers ;-)

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post #21 of 58
Originally Posted by JONOROM View Post
They are measuring "Smartphone Operating System Share" but excluding the iPad, which also runs iOS, a smartphone operating system. WTF
That may explain Apple's disappointing results as measured by these numbers ;-)

 

Oh, I don't think it's disappointing in any fashion. It's growth! And more marketshare than they've ever had.

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post #22 of 58
Quote:
Originally Posted by Blastdoor View Post

Wow, the difference between the US and the rest of the world is very stark. 
...
If Apple can get out lower cost iPhone models internationally and build up the ecosystem, then perhaps Apple can replicate their success in the US globally. 

You are on to something. I would say that the Apple brand largely depends on proof of quality and all the ways Apple acts to strengthen this. Apple Stores are one important thing here. In Europe they have to rely on retail partners. They fail in knowledge and in replicating the level of service provided in US based Apple Stores. Not because they do not want to (they are often enthusiasts) but simply because Apple is very good at this and it's hard to replicate thru partners. Everything from handling sales to accept faulty products and repairs.

This to me is much more important than hitting lower price points. Apple is about best performance and best service. For this to be what it is in US they need more Apple Stores. Not just flag ships but also smaller store to get first contact with end users.

After this comes iTunes store. They need to aggressive make sure all music and all movies and so forth are spread in all iTunes stores. Possibly they also need to lower price. 1 euro is today 1,5 dollar. This makes tracks more expensive. This makes it easy for Spotify but it also lowers experience once any customers tries the Eco system.
post #23 of 58
Quote:
Originally Posted by sflocal View Post


Isn't the low-cost issue a moot point?  I'm not sure how the international market is, but here in the US they are selling the 3GS for free, the iP4 (not 4S) for $50.00 now.  I would think they are doing something similar overseas right? 
 

 

Not really.. Here's an example in Indonesia http://www.telkomsel.com/iphone For 1 year contract, to get iPhone 4S 16GB you need to pay around 400 USD and pay monthly around 35 USD. I would say 35 USD is 10% of the minimum average monthly salary in big cities in Indonesia.

post #24 of 58
Quote:
Originally Posted by dylanh View Post

Oh yea, of course Appleinsider.com is going to be biased as well as the follower comments. Android is superior.

 

You registered, just to post that comment?

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post #25 of 58
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Originally Posted by herbapou View Post

The -5.4% in smartphones sales is an interesting stat.

A more interesting fact is that Android is down nearly 2 M units this quarter while iOS is up 2 M units. This is the first time there's been a year over year drop in either iPhone or Android sales.

Must be all those people returning Samsung phones after they learned they weren't iPhones. /s
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post #26 of 58
Quote:
Originally Posted by dylanh View Post

Oh yea, of course Appleinsider.com is going to be biased as well as the follower comments. Android is superior.

Thanks for the laugh. I needed that at the end of an otherwise dour day. lol.gif

 

I think you forgot "/s" though.

post #27 of 58

The data are for the Q2 2012 and I doubt that Q3 will show the same trend. iPhone sales are slowing down in the anticipation of the new iPhone, while Samsung had record sales since the introduction of Galaxy S III; neither of the facts captured in the reported data. 

post #28 of 58

Was APPLE ][ banned?

post #29 of 58
Quote:
Originally Posted by daylove22 View Post

Outside the US you pay full price as carriers do not subsidy phones

 

I use an iPhone 4 in Australia, it cost nothing, subsidised on my plan, just like they are sold in a lot of other countries.

 

Australia is not part of the USA, close but not part of, since well before "All the way with LBJ" days..

 

The Samsung Galaxy S 3 variants (16, 32, 64GB) sell for exactly the same prices as iPhone 4S equivalents.

 

Unsubsidised phones tend to be cheaper models sold with PAYG SIM's.

 

You are promoting a myth.


Edited by hill60 - 7/30/12 at 2:24pm
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post #30 of 58
Quote:
Originally Posted by Shaun, UK View Post

 

Outside the US the Prepaid Pay As You Go market is a lot more prevalent. Apple does not do well in this market because the iPhone unsubsidised is simply too expensive for most PAYG users. I suspect that will change if Apple decides to reposition the iPhone 3GS to address this market with significant price reductions. That has the potential to dramatically increase the iPhone market share outside the US, albeit probably at a lower margin per unit.

 

 

So most Android phones sold are cheaper, low end models?

 

PS remember this?

 

 


Quote:
Originally Posted by Shaun, UK View Post

 

Not to the same extent. iPhone 4S sales have started to slow down 6 months before the anticipated new version. In the past it's only hit sales for a few weeks before the new model. No matter how Apple try to spin it it's clear a lot of people are switching to other brands instead of buying the iPhone 4S. It will be interesting to see whether or not that trend will be reversed with the iPhone 5. Not in the first few months, but 6 months out when the initial post launch sales rush has worn off.


Edited by hill60 - 7/30/12 at 2:43pm
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post #31 of 58

Hm..., If Apple is GAINING market share in the declining US smartphone marketplace [the excuse was the economy according to the survey]  then Apple must be seriously LOSING market share overseas. The oversea's share of Apple sales is 26 million minus 7.9 million or about 18 million phones. Do you remember Apple's CEO mantra? Apple's growth is in China. Without China, Apple goes bye...bye..., kaputski. People mostly buy Iphone at cost overseas, and this is also why most Apple buyers over there are affluent people. People who can buy 10 Iphones for their families with cash. This is the place where Apple gets the real cold hard cash, and unfortunately, it is also where Apple hide most of its cash to avoid paying taxes. The current estimate of Apple's cash and investment "hidden" oversea is between US 70 billion to 90 Billion. It's a very tax-responsible company, isn't it? I am sure the Fed is very happy about that.

 

Almost everywhere else outside of North America, including  China [with its 1.5 Billion people], India [with its 1 Billion People], Indonesia [with 250 million people], and so on, Apple market share is quite negligible compare to Android's. Strangely enough, in Indonesia, RIM's Blackberry hold the number 1 position for smartphone's market share. Apple is indeed DOOMED outside the US and Canada, and you don't even have to go far to look at failing Apple growth strategy. You just have a look at the southern neighbor. Mexico's Iphone sales number is so tiny, it is actually a carbon copy of Apple's performance in most places around the world. Apple is mostly a dud outside its home turf. That will spell trouble with Apple's growth strategy coined by Cook.

 

Quote:
Originally Posted by Tallest Skil View Post

"APPLE. IS. DOOMED."

 

"But Android is outshippingselling Apple!"

 

No, seriously, where are all those Android phones going?


Edited by mcrs - 7/30/12 at 10:19pm
post #32 of 58
Quote:
Originally Posted by Just_Me View Post

Was APPLE ][ banned?

No, he's on a "mission". He'll likely be back in a few months according to his posts.

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post #33 of 58

great now not only will we celebrate when OSX finds itself at 11% to windows 89% - now we will also rejoice in a 56% to 33% difference as validation to greatness.

 

the underlined stupidity in both celebration is mind bending. 

post #34 of 58
Quote:
Originally Posted by SolipsismX View Post

I'm more interested in why the YoY adoption of smartphone are down about 6%.

5.4% is shipment rate drop. 

post #35 of 58
Quote:
Originally Posted by Tallest Skil View Post

"APPLE. IS. DOOMED."

 

"But Android is outshippingselling Apple!"

 

No, seriously, where are all those Android phones going?

 

if you really think 27million iphones are enough to supply the world demand for smart phones or that 7.9 million can supply the US market - my faith in our education system has truly hit a low point.

 

Safe to assume, they going to everyone else.

post #36 of 58
Quote:
Originally Posted by agramonte View Post

great now not only will we celebrate when OSX finds itself at 11% to windows 89% - now we will also rejoice in a 56% to 33% difference as validation to greatness.

 

the underlined stupidity in both celebration is mind bending. 

 

Completely different reasons for Windows market share being what it is, and completely different for OS X. 

 

In either case, though, Android = Microsoft Windows = UNIVERSAL LICENSING = easy marketshare. Just whore out your OS and forget the hell about it. Which explains the HUGE disparity in consumer satisfaction between OS X/iOS gear and Windows/Android gear. 

 

If you don't ask yourself what's BEHIND the numbers, what strategy and business model supports the numbers, and where they rate in satisfaction as a result of that, you'll never understand. 


Edited by Quadra 610 - 7/30/12 at 2:56pm
post #37 of 58
Quote:
Originally Posted by LizSandford View Post

"We are not sheep," said the crApple fanboy.
"The fact that the iPhone is more popular is proof that you should buy one without trying Android," added AF.
To say people get Android phones because they are talked into it or don't know better (or think they are getting an iPhone) is BS.
I HAD a 3GS as my first phone. When my contract ended I jailbroke it to get additional features. Then, when the battery faded I tried a Galaxy 2 as i liked a larger screen for nearly all my smart phone tasks- most involve typing. I also liked the options it provided that iPhone did not.
I could have returned my phone for an IPhone 4 or 4s. I did not. I paid about $50 less but it's worth much more to me than that. Really,$ is a nonissue.  

 

Your personal anecdotes that reflect YOU and YOU ALONE, are no more substantial than "my favourite colour is red", or "I like cheese."

 

Ok. So? Now what. Where do you stand on salad? Caesar or Greek?

 

But on the bright side, on some nights in bed your husband will probably act like he's *really* interested.    *thumbs up*

post #38 of 58

..and this is with Apple's latest product release being more than 9 months ago, while new Android phones are released every week. Amazing. 

post #39 of 58
Quote:
Originally Posted by LizSandford View Post

"We are not sheep," said the crApple fanboy.
"The fact that the iPhone is more popular is proof that you should buy one without trying Android," added AF.
 

 

How the hell are people like this allowed to post, and not banned? What value can this blatant troll possibly contribute to any discussion?

post #40 of 58
Quote:
Originally Posted by SolipsismX View Post

I'm more interested in why the YoY adoption of smartphone are down about 6%.

Saturation maybe?
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