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Apple overtakes Android to account for 50% of smartphones used in US

Apple has overtaken Android units to account for greater than half of smartphones used in the US, giving the iPhone maker an edge over its rival because it pushes into sectors together with finance and healthcare.

The 50 per cent landmark — the iPhone’s highest share because it launched in 2007 — was first handed in the quarter ending in June, in accordance to knowledge from Counterpoint Analysis. Some 150 units utilizing Google’s Android working system, led by Samsung and Lenovo, accounted for the remaining.

“Working techniques are like religions — by no means important modifications. However over the previous 4 years the movement has constantly been Android to iOS,” mentioned Counterpoint’s analysis director, Jeff Fieldhack. “This can be a huge milestone that we might see replicated in different prosperous international locations throughout the globe.”

The numbers are primarily based on smartphones in use, often called the “lively put in base”, what Apple finance chief Luca Maestri dubbed “the engine for our firm” in a July earnings name.

This can be a wider and extra significant class than new cellphone shipments, which fluctuate from quarter to quarter and have already demonstrated Apple’s newfound power.

The lively put in base takes into account the tens of millions of individuals introduced into Apple’s ecosystem via the used cellphone market, in addition to those that use iPhones bought years in the past.

Ben Wooden, analyst at CCS Perception, mentioned: “It’s not that we’re seeing an enormous yr the place Apple grows its market share 10 or 15 per cent, however there’s this sluggish burn the place they quietly simply seize extra share yearly.”

Line chart of Installed base* share (%) showing iPhone ‘active installed base’ now a majority of US smartphones

Android-powered smartphones first went on sale in 2008, a yr after the iPhone debuted, and overtook the iOS-installed base in 2010, in accordance to NPD Group. Within the three earlier years, Apple by no means had something close to 50 per cent market share, as gross sales have been dominated by Nokia, Motorola, Home windows and BlackBerry.

As Apple chief govt Tim Cook dinner prepares to unveil the iPhone 14 on Wednesday, the milestone suggests the corporate has by no means been in a extra aggressive place regardless of persistent criticism that it has misplaced its revolutionary edge.

The group’s keynote autumn occasion in latest years has been way more about developments to current devices slightly than firm founder Steve Jobs’s well-known “yet another factor” product launches.

Apple is predicted to unveil the brand new iPhones at its first in-person occasion for the reason that onset of Covid-19, in Cupertino, California. Analysts count on higher cameras and a smaller “notch” in the show the place sensors are held, plus a extra rugged model of the Apple Watch.

Below Cook dinner, the iPhone, a disruptive product that spawned complete industries, has made Apple the biggest firm in the world, with a market capitalisation of $2.5tn.

“Cook dinner has taken what Jobs gave him and has constructed an empire out of this,” Wooden mentioned. “As a result of anybody who buys an iPhone — whether or not it’s second-hand, third-hand, or fourth-hand — will most likely give Apple some cash shopping for apps, paying for iCloud, utilizing Apple Music, or transacting on Apple Pay. And that’s a mannequin that nobody else, actually, has been ready to replicate.”

With iPhone penetration reaching saturation, Cook dinner has pushed into motion pictures and TV, promoting and funds and health and well being, leveraging an put in international base for iPhones that surpassed 1bn in 2020.

The result’s a various set of “companies” income that constantly grows in double-digits and delivers revenue margins north of 70 per cent — two occasions the profitability of its {hardware} enterprise.

The quantity of individuals paying charges to this array of companies reached 860mn in the June quarter — roughly double the quantity of Netflix and Disney-Plus subscribers mixed.

Analysts noticed a lot of room for Apple to enhance its market share given how the remaining of the world stays Android-dominant, largely as a result of of its selection and decrease value. Cook dinner just lately mentioned the group had “set a June quarter document for switchers” — shoppers leaving Android for iOS.



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