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

Posted:
in iPhone edited January 2014
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.
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Comments

  • Reply 1 of 62
    tallest skiltallest skil Posts: 42,841member


    "APPLE. IS. DOOMED."


     


    "But Android is outshippingselling Apple!"


     


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

  • Reply 2 of 62
    blastdoorblastdoor Posts: 1,780member


    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. 

  • Reply 3 of 62
    sflocalsflocal Posts: 4,013member


    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.

  • Reply 4 of 62
    solipsismxsolipsismx Posts: 19,566member
    I'm more interested in why the YoY adoption of smartphone are down about 6%.
  • Reply 5 of 62
    blastdoorblastdoor Posts: 1,780member

    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. 

  • Reply 6 of 62
    sflocalsflocal Posts: 4,013member

    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? 

     

  • Reply 7 of 62
    anantksundaramanantksundaram Posts: 18,407member

    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.

  • Reply 8 of 62
    daylove22daylove22 Posts: 215member

    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

  • Reply 9 of 62
    tallest skiltallest skil Posts: 42,841member


    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.

  • Reply 10 of 62
    applegreenapplegreen Posts: 421member

    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."

  • Reply 11 of 62
    solipsismxsolipsismx Posts: 19,566member
    applegreen wrote: »
    Well...the article says:
    "<span style="background-color:rgb(226,225,225);color:rgb(24,24,24);font-family:'lucida grande', verdana, helvetica, sans-serif;line-height:normal;">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."</span>

    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.
  • Reply 12 of 62
    herbapouherbapou Posts: 2,199member


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

  • Reply 13 of 62
    quadra 610quadra 610 Posts: 6,734member


    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. 

  • Reply 14 of 62
    herbapouherbapou Posts: 2,199member

    Quote:

    Originally Posted by Blastdoor View Post


    The rest of the world. 



    Those are US sales number :)

  • Reply 15 of 62
    nagrommenagromme Posts: 2,834member


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

  • Reply 16 of 62
    shaun, ukshaun, uk Posts: 1,050member

    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.

  • Reply 17 of 62
    "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.
  • Reply 18 of 62
    andysolandysol Posts: 2,506member


    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.

  • Reply 19 of 62
    jonoromjonorom Posts: 293member
    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 ;-)
  • Reply 20 of 62
    tallest skiltallest skil Posts: 42,841member


    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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