Cook says 20% of iPhone install base upgraded to iPhone 6, 6 Plus

Posted:
in iPhone edited May 2015
Apple CEO Tim Cook on Monday revealed about 20 percent of active iPhone users have upgraded to the company's latest iPhone 6 or iPhone 6 Plus hardware, leaving room for growth.




Cook's statement, which came in response to an analyst question during Apple's quarterly conference call for the second quarter of 2015, suggests iPhone has substantial room for growth in the months leading up to an expected next-generation handset launch this fall.

For its second fiscal quarter, Apple sold a whopping 61 million iPhones leading to a record $13.6 billion in profits for the three month period. The number is huge considering negative seasonality headwinds, possibly bolstered by first-time buyers in developing regions. For emerging markets, iPhone sales were up 63% year-over-year.

Earlier in the call, Cook noted iPhone was seeing a higher rate of switchers than previous quarters, hinting that iOS is stealing marketshare from Google's Android operating system. Combined with potential upgraders, iPhone appears primed for further growth across quarter three and beyond.
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Comments

  • Reply 1 of 47
    mac_128mac_128 Posts: 2,975member
    Quote:
    Originally Posted by AppleInsider View Post



    Apple CEO Tim Cook on Monday revealed about 20 percent of active iPhone users have upgraded to the company's latest iPhone 6 or iPhone 6 Plus hardware, leaving room for growth.

     



    Wow. That is shockingly low. I am really surprised that there are not more upgrades to the 6 at this point. I would have expected at least 40% ... what was the iPhone 5 percentage at the same time?

  • Reply 2 of 47
    asdasdasdasd Posts: 4,950member
    Cook didn't answer when he was asked what the situation was last year. It does seem low, even more so when he said low teens at the last call had updated. So just 5-7 % increase?

    It's clearly good news because it means many if not most buyers of the iPhone 6 are switchers or first time users of iPhones.
  • Reply 3 of 47
    bageljoeybageljoey Posts: 1,725member
    Anecdotally, I noticed 4 different people today still using "old" iPhones. Each time I thought, "this guy/girl strikes me a a person who would love a 6 and could afford an upgrade. It's just a mater of time..."
    I believe this easily. Apple is no where near saturation with 6s. And with emerging markets, well, emerging--Apple is beating the cycle!!
  • Reply 4 of 47
    asdasdasdasd Posts: 4,950member
    A cheap large screen next year will sell like gang busters.

    A quick back of the envelop calculation gives me about 30M switchers or new users across 2Q.
  • Reply 5 of 47

    I'm not in a contract and I'm waiting to see what will come with the next iPhone cycle (6S, 6S Plus) because everything is functioning fine. The longer you can wait, the more compelling the upgrade becomes. Wife is still using an iPhone 4 running iOS 7.x and I'm actually using an iPad Mini 2 (I don't take or make many calls and just use VoIP). The lack of compatibility with Apple Watch for iPad is disappointing. Why can't a cellular capable iPad be used? Seems like that would be a decent combination (iPad Mini Cellular + Apple Watch).

  • Reply 6 of 47
    mcarlingmcarling Posts: 1,106member

    Only 20% have upgraded because the iPhone 6 is too freakishly big for many users.

  • Reply 7 of 47
    adonissmuadonissmu Posts: 1,770member
    Thats not true at all. The iPhone 6 has a smaller footprint compared to my 5s. People need to factor in thinness.
  • Reply 8 of 47
    quinneyquinney Posts: 2,497member
    The upgrade cycle has a long way to go.
  • Reply 9 of 47
    wizard69wizard69 Posts: 12,354member
    mac_128 wrote: »

    Wow. That is shockingly low. I am really surprised that there are not more upgrades to the 6 at this point. I would have expected at least 40% ... what was the iPhone 5 percentage at the same time?

    It may seem low but it is also a good comment on the strength of iPhone in the market. The numbers mean huge sales to new customers.

    Beyond that why would one upgrade every year considering how nicely the iPhone has matured? I'm still running around with an iPhone 4. An upgrade isn't a priority for me due to having an IPad which in many ways is a better device than an iPhone for me. I'm not sure wha the next rendition of the iPhone will look like but i might be tempted if they put bleeding edge performance into a smaller package.
  • Reply 10 of 47
    wizard69wizard69 Posts: 12,354member
    bageljoey wrote: »
    Anecdotally, I noticed 4 different people today still using "old" iPhones. Each time I thought, "this guy/girl strikes me a a person who would love a 6 and could afford an upgrade. It's just a mater of time..."
    So why be so concerned about the age of other people phones?
    I believe this easily. Apple is no where near saturation with 6s. And with emerging markets, well, emerging--Apple is beating the cycle!!

    It is a very good sign and could point to even bigger sales of iPhone 7 or 8. It is just a matter of users waiting for a worthwhile upgrade. Honestly I never understood the most upgrade every cycle crowd, they strike me as desperate people.
  • Reply 11 of 47
    wizard69wizard69 Posts: 12,354member
    adonissmu wrote: »
    Thats not true at all. The iPhone 6 has a smaller footprint compared to my 5s. People need to factor in thinness.

    Yeah like thinness has anything to do with the current iPhones being too big.

    Honestly I'm waiting for the day when iPhone and Apple watch are the same thing. Literally a Dick Tracy type watch. Something like that would go great with an iPad.
  • Reply 12 of 47
    bageljoeybageljoey Posts: 1,725member
    wizard69 wrote: »
    So why be so concerned about the age of other people phones?
    Ha! I'm not "concerned." But, as everyone else here (I assume) I am curious about iPhone upgrade cycles. And, after using the 6 for half a year, the 4s does look painfully tiny to me. So when I see a tech-comfortable person poking around on a 2-3 year old phone, it makes me think "that's a 6 about to happen."

    Today was notable because I seemed to see so many all at once. Maybe my antennae were up because of today's earnings call or maybe it was random, I dunno. But it seemed to dove-tail with Cook's remarks...
  • Reply 13 of 47
    xixoxixo Posts: 414member
    My wife and I upgraded from the 5 to the 6 Plus in January, we couldn't be happier.

    I know a lot of other people (Android and iPhone) who intend to buy the 6 plus once their contract is up. Both of the folks who bought our old iPhone fives were Android switchers.

    I don't know anyone with an iPhone who's planning to switch manufacturers.
  • Reply 14 of 47
    gordygordy Posts: 949member
    20% is understandable. I was poised to upgrade when the 6 / 6 plus came out, but there's no way I'm walking around with a behemoth phone in my hand. If I decide to upgrade this year -- and Apple doesn't make a smaller version of the next iPhone -- I will buy an unlocked 5S.
  • Reply 15 of 47
    desuserigndesuserign Posts: 1,316member
    Quote:


    "Cook says 20% of iPhone install base upgraded to iPhone 6, 6 Plus"


     

    Actually he said "installed base," as educated, non-jargozed, competent, native speakers tend to say.

    [shortly after 33.03]

     

    Quote:

    Originally Posted by Mac_128 View Post

    Wow. That is shockingly low.


    20% seems about right to me considering:

    • the 6/6+ are 1st gen, (many will wait for the slight bump of gen 2)

    • Apple introduces new phones twice a year now,  and

    • many folks (almost all in the US) get their phones with a 2 year contract with accompanying restrictions.

     

    It frankly seems likely the rate would be right around 20% and very unlikely it could be much over %25 ( %40? forget about it.)

  • Reply 16 of 47
    desuserigndesuserign Posts: 1,316member
    Quote:

    Originally Posted by gordy View Post



    20% is understandable. I was poised to upgrade when the 6 / 6 plus came out, but there's no way I'm walking around with a behemoth phone in my hand. If I decide to upgrade this year -- and Apple doesn't make a smaller version of the next iPhone -- I will buy an unlocked 5S.

    The 6+? Behemothish, yes.

    The 6? Not so much.

    If you plan to wait for a phone smaller than the 6, I think you'll be waiting for a long time.

  • Reply 17 of 47
    gordygordy Posts: 949member
    desuserign wrote: »
    The 6+? Behemothish, yes.
    The 6? Not so much.
    If you plan to wait for a phone smaller than the 6, I think you'll be waiting for a long time.
    I'm patient. The 5S will be a fine upgrade for me in the meantime. I no longer live at the whim of Apple's upgrade cycle. iPhones are quality products with plenty of life in them. Even after a few years.
  • Reply 18 of 47
    bluefire1bluefire1 Posts: 725member
    Obviously size matters. Some people are probably waiting for their contract period to end before upgrading (or switching) to the 6 or Plus. We know that the 6s will have more speed and probably a force touch display, but what else? A sapphire screen would be nice as well. Maybe they'll even call it the iPhone 7.
    I'm ready whatever they call it.
  • Reply 19 of 47
    desuserigndesuserign Posts: 1,316member
    Quote:

    Originally Posted by gordy View Post



    I'm patient. The 5S will be a fine upgrade for me in the meantime. I no longer live at the whim of Apple's upgrade cycle. iPhones are quality products with plenty of life in them. Even after a few years.

    Sure, I feel the same way (and appreciate frugality.) In fact I've been a shareholder for over 20 years, but only just got an iPhone this spring.

     

    I just think the 6/6+ are Apple's new path. I don't think the screens will get smaller.

    Seeing as you like the 5S (a great phone) you probably don't have this problem, but I think Apple has found that the small screens are just too small for most people over about 38. With any presbyopia, a small screen is just too hard to read for too many people.

    But Apple often surprises.

  • Reply 20 of 47
    ggfggf Posts: 41member
    desuserign wrote: »
    Sure, I feel the same way (and appreciate frugality.) In fact I've been a shareholder for over 20 years, but only just got an iPhone this spring.

    I just think the 6/6+ are Apple's new path. I don't think the screens will get smaller.
    Seeing as you like the 5S (a great phone) you probably don't have this problem, but I think Apple has found that the small screens are just too small for most people over about 38. With any presbyopia, a small screen is just too hard to read for too many people.
    But Apple often surprises.

    Some people do not read web pages on their phones. If this is the use case a smaller screen is fine. This just proves that people like me who have been saying we want a full function small screen phone are not a lunatic minority. People vote with their wallets. I think this will act as an incentive for apple to rethink the size lineup and offer three sizes
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