iPhone is the only reason the US smartphone market has recovered

Posted:
in iPhone

Overall, sales of smartphones in the US grew 8% year over year in 2023, driven by a "very robust" showing for Apple's iPhone.

iPhone 15 Pro colorful lineup
iPhone 15 Pro colorful lineup



Just as with the latest global smartphone figures, a new report says that premium phones such as Apple's have done better than lower-cost devices.

According to Counterpoint Research in a note seen by AppleInsider, Apple's sell-in share rose to 64% in Q4 2023. That's the company's highest market share since Q4 2020.

That drove the overall smartphone shipments to a rise of 8% YoY, and Counterpoint ascribes both that and the iPhone's increase to Apple recovering from the disruptions following the previous year's COVID-induced factory shutdowns.

"Q4 is usually very robust for Apple given the strong demand for iPhones during the holiday sales," said Jeff Fieldhack, Counterpoint's research director for North America. "Throughout 2023, Apple made inroads in prepaid with its N-2 or N-3 devices, selling the iPhone 12 or iPhone 11 at very reduced prices, which also helped it grow its market share in this segment."

Bar chart showing US smartphone market share by OEM with an Apple logo leading, followed by Samsung, Motorola, Google, TCL, and others.
Apple tops the sales of US smartphones



Android sales declined overall as Counterpoint says that the sub-$300 market "saw the largest declines."

"The outlook for 2024 will largely depend on the US economy," wrote Counterpoint's associate director Hanish Bhatia. "It is an election year, which generally means improvements in various economic parameters."

"Therefore, demand is expected to pick up across all price segments, leading to modest growth throughout the year," continued Bhatia. "MVNOs [Mobile Virtual Network Operators] like Google Fi, which have increased their presence in national retail channels, will continue to bring competition to prepaid."

"With the Affordable Connectivity Program (ACP) funding likely ending or being reduced soon," said Bhatia, "this will be another driver for the low-end market."

Counterpoint also predicts that the premium smartphone market will continue to grow in 2024 because of generative AI features. Separately, it's been reported that Apple is planning to introduce more AI into iOS 18 for the forthcoming iPhone 16 range.



Read on AppleInsider

Comments

  • Reply 1 of 9
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    williamlondon
  • Reply 2 of 9
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    Least competitive or demands a quality product. I think the later. 
    williamlondonwatto_cobra
  • Reply 3 of 9
    M68000M68000 Posts: 761member
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    I see plenty of android phones where i work and when i go out places and i live in the US. 
    williamlondon
  • Reply 4 of 9
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    Least competitive or demands a quality product. I think the later. 

    Really, You believe that no other brand has quality products?

    It's a known fact that Apple is a cultural icon in the States, nobody cares about Samsung as a brand, Google is considered a search engine/software company.

    Android has a bad reputation in the states, it is mostly Google's fault that they didn't control the OS from the beginning and let it be modified by companies such as Scamsung which have no expertise in software and provide terrible support to the customer after they buy the device. Also, Chinese brands modifying Android and making it an iOS clone is a bad look. 

    The American people also have an aversion from being considered poor and unsuccessful, most people like buying expensive brands and having an OS that powers $100 phones in their $1000 phone doesn't make sense. The green-blue thing also plays a part.
    edited February 1 muthuk_vanalingamwilliamlondon
  • Reply 5 of 9
    M68000 said:
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    I see plenty of android phones where i work and when i go out places and i live in the US. 

    That number is going to decrease, if current market trends continues.
    williamlondon
  • Reply 6 of 9
    danoxdanox Posts: 2,950member
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    Least competitive or demands a quality product. I think the later. 

    Japan is the same way for Apple....
    lolliverwatto_cobra
  • Reply 7 of 9
    danox said:
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    Least competitive or demands a quality product. I think the later. 

    Japan is the same way for Apple....

    Because there is no real Android competition, the Japanese hate Samsung (because they are a Korean brand), they also hate Chinese brands. Domestic brands also aren't good, Sony, for example, has the worst release cycle and update policy in the Android world.

    That's why Pixels are gaining market share in the country. The Japanese love American brands.
  • Reply 8 of 9
    danoxdanox Posts: 2,950member
    rax_mark said:
    danox said:
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    Least competitive or demands a quality product. I think the later. 

    Japan is the same way for Apple....

    Because there is no real Android competition, the Japanese hate Samsung (because they are a Korean brand), they also hate Chinese brands. Domestic brands also aren't good, Sony, for example, has the worst release cycle and update policy in the Android world.

    That's why Pixels are gaining market share in the country. The Japanese love American brands.

     I see what you did there, the Pixel is definitely a inferior smartphone top to bottom to similar to a Chromebook, phoning home to makeup for a weak SOC that is barely ahead of 10 Pro iPhone made five-six years ago isn't a good thing.

    Googles Tensor SOC and the modem they currently use in the Pixel Pro which needs to phone home for all major tasks involving over hyped AI.

    https://browser.geekbench.com/mobile-benchmarks 

    edited February 2 watto_cobra
  • Reply 9 of 9
    danox said:
    rax_mark said:
    danox said:
    rax_mark said:
    Wow, the states really likes iPhones. 

    If I were Google, I would realise that the US market is already lost and focus on other demographics. However, since the world is moving to premium and Android has a budget and cheap tag to it, I don't think that those markets will remain Android majority for a long time.

    Regardless, I think many Android OEMs will likely pull out of the states if things continue for them like this. 

    The US is already the least competitive market for phones in the world, the situation will only get worse.
    Least competitive or demands a quality product. I think the later. 

    Japan is the same way for Apple....

    Because there is no real Android competition, the Japanese hate Samsung (because they are a Korean brand), they also hate Chinese brands. Domestic brands also aren't good, Sony, for example, has the worst release cycle and update policy in the Android world.

    That's why Pixels are gaining market share in the country. The Japanese love American brands.

     I see what you did there, the Pixel is definitely a inferior smartphone top to bottom to similar to a Chromebook, phoning home to makeup for a weak SOC that is barely ahead of 10 Pro iPhone made five-six years ago isn't a good thing.

    Googles Tensor SOC and the modem they currently use in the Pixel Pro which needs to phone home for all major tasks involving over hyped AI.

    https://browser.geekbench.com/mobile-benchmarks 

    I don't really own a Pixel (but I do like the concept of a company owning the complete stack just like Apple). I just stated what I had read on news sites.

    However, I believe that in would be unfair to compare the American market with the Japanese market, both are different due to various reasons.

    However, one thing is similar that competition is limited in both of them compared to countries such as China or India due to cultural reasons.
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