iOS dominated U.S. holiday shopping with 77% share of online orders as Android accounted for just 2

Posted:
in iPhone edited January 2016
Holiday quarter online shopping revenues grew 12 percent over last year in the U.S., despite less promotional discounting. Additionally, 77 percent of orders from mobile devices were made from Apple-branded devices, compared to just 23 percent using Android.


Source: Custora E-Commerce Pulse


That online shopping data comes from Custora's E-Commerce Pulse, the marketing firm's report on online buyers and shopping trends, including "200+ online retailers, 500 million anonymized shoppers, and $100B in e-commerce revenue."

The 12 percent increase in e-commerce revenues was linked to an 11 percent increase in orders, and a 1.1 percent increase in Average Order Value, " indicating a less promotion-driven holiday season than last year," the company reported.

Marketers found organic search drove 21.5 percent of online sales, while email marketing drove a nearly identical share at 20 percent. Social media advertising from sites like Facebook, Twitter and Pinterest contributed to only 1.8 percent of those sales.

Apple's ability to maintain iOS' oversized representation (compared to its roughly 40 percent U.S. smartphone share) among online shoppers even as the market grew and sales rose reinforces that minority market share of iOS compared to Android is actually more valuable, because it attracts a more affluent and sophisticated demographic of users. Custora noted that desktop shopping from conventional PCs dropped from 75 percent of orders last year to 70 percent this year, while smartphone-based online orders grew from 13 percent to 19 percent

It's also clearly tied to the continuing trend in PC shopping shifting to use their mobile device to do tasks formerly done in a desktop browser.

Custora noted that desktop shopping from conventional PCs dropped from 75 percent of orders last year to 70 percent this year, while smartphone-based online orders grew from 13 percent to 19 percent. Orders placed on a tablet fell slightly, from 12 percent a year ago to 10 percent during the holiday season.

Similar shifts were seen on Black Friday, Cyber Monday and general Holiday shopping, where PC orders fell around five percentage points over the previous year, while tablet sales remained flat or lost a point or two. Shopping on smartphones increased across the board by 5-7 percentage points across the busiest shopping days of the year.


Source: Custora E-Commerce Pulse


That data correlates with the flat consumer demand for tablets across the board, and appears to reinforce the idea that larger phone screens, like Apple's 5.5 inch iPhone 6 Plus, have taken the place of dedicated tablets for some users. Over the last year, Apple saw its iPad sales decrease as its new large screen iPhones were enthusiastically adopted by users.

It remains to be seen whether larger tablets, like Apple's 12.9 inch iPad Pro, will have a similar cannibalizing effect on conventional notebooks and PCs. So far, while Apple has seen its iPad sales grow from zero to 55 million units per year over the past five years, its sales of Mac notebooks and desktops has also continued to expand, from in 13.7 million in 2010 to more than 20.5 million last year.

In stark contrast, PC makers have seen a continuous string of no-growth quarters as Microsoft introduced new hybrid-tablet oriented versions of Windows that the market largely rejected and maker OEMs including HP and Dell have failed to capitalize on tablet sales while also seeing their PC businesses flatline in competition with iPads.

Microsoft's own foray into PCs with Surface models has so far been a bleak, low volume failure, but industry observers are keenly interested in whether the company has been able to turn things around during the holiday quarter with the introduction of new, albeit very expensive, models.

Comments

  • Reply 1 of 9
    lkrupplkrupp Posts: 7,470member
    Unfortunately none of this means a damn thing to Wall Street.
  • Reply 2 of 9
    mac voyermac voyer Posts: 1,283member
    Apple's ability to maintain iOS' oversized representation (compared to its roughly 40 percent U.S. smartphone share) among online shoppers even as the market grew and sales rose reinforces that minority market share of iOS compared to Android is actually more valuable, because it attracts a more affluent and sophisticated demographic of users. 
    If there is one thing we learned from the detractors, it is that whatever reason the purchasing disparity, it cannot possibly be due to any socio-economic difference between iOS and Android users.
    icoco3ericthehalfbee
  • Reply 3 of 9
    muppetrymuppetry Posts: 3,328member
    I don't think that this is down to the demographics of ownership - I think it likely reflects that many cheaper Android devices, even in the US, are not really used as smart phones.

    Well - demographics may play a part too.
    edited January 2016
  • Reply 4 of 9
    calicali Posts: 3,495member
    In other news,

    People who buy knockoff clothing spent less this holiday.
  • Reply 5 of 9
    jfc1138jfc1138 Posts: 3,090member
    muppetry said:
    I don't think that this is down to the demographics of ownership - I think it likely reflects that many cheaper Android devices, even in the US, are not really used as smart phones.

    Well - demographics may play a part too.
    Good point. It very well may reflect that people who buy less capable devices are making informed choices because they don't intend to USE the features a more capable device would offer. I like the touch interface on my Gen 1 iPod Touch and could see that being a nice interface for even  simply a voice and text message used cellphone. Not much need for response speed to speed dial or enter a simple SMS message or read one...
    edited January 2016
  • Reply 6 of 9
    koopkoop Posts: 337member
    This is definitely a legitimate issue. Android users are not likely to shop, click ads or buy apps and music. 

    I think there are numerous reasons for this. I don't think Google did a good job initially with putting together an ecosystem that encouraged paying money for things. Android had a reputation of a platform you adopted because you got free stuff. 

    As someone pointed out, some Android devices are bargain bin prepaid phones with poor processors and people are more likely using them as straight up phones.

    There is likely some classism going on too. iPhone users are likely to spend money. They did buy an iPhone after all. 

    But it's a big problem for Google because it damages developer focus with the platform. iOS will be a first class citizen for apps, games and services.
  • Reply 7 of 9
    I don't use a desktop or laptop to do any online shopping anymore. Nordstrom, Amazon, Bloomingdales, Sears and a whole host of merchants have their own iOS apps. 

    I recently activated an iPad pro and will rid myself of the work provided Dell laptop running that putrid hybrid Windows 8. I also no longer use my MacBook Air at all. The battery life, screen, performance and sound from the iPad completely blows away the Air in every measure.

    The precipitous decline in PC driven sales will only continue to accelerate. It's still only just the beginning for Wintel. While the 6+ cannibalized sales of tablets, the iPad pro is going to do the same to the conventional laptop. The Surface Pro isn't competitive. Terrible battery life with a vastly inferior stylus to the Apple pencil, inferior graphics performance and with far fewer apps. 

    I myself have purchased my last machine with an Intel chip. It happens to be my four year old air. I did think about purchasing a Mac Mini as a media device but am now holding off for an Apple TV with TVOS running on a future version of the A9/A9X. 

    The end of the line is nearing for Wintel. And I don't care that iOS and its variants cannot run programs like Photoshop or AutoCad. One day they will. Or they will be displaced by other software that can. 

    Android as the only other major platform that can run on ARM will survive. Tizen may see a major breakthrough. But Windows on x86 has already seen its best days. 
  • Reply 8 of 9
    crossladcrosslad Posts: 503member
    The way Wall Street will see this is that Apple lost 2.5% share whilst android gained 9.5% of the online market.
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