's iPhone 6 unveiling
in just over a month, the Mac maker continues to grow its
presence in the U.S. smartphone market. That's despite the
typical seasonal trend in which potential iPhone customers delay
purchases ahead of fall product launches.
Can I get your digits?
yesterday released its latest estimates on the domestic
smartphone market for the three months ending in June. The market
researcher pegged Apple's market share of U.S. smartphone
subscribers at 42.1%, up from 41.4% in March. That's well ahead
's 28.6% share, although the South Korean conglomerate put up the
biggest sequential gain among OEMs from last quarter.
On the platform front,
Android remains the dominant platform in the U.S., with 51.9% of
subscribers. That's a modest downtick from March, when the search
giant grabbed 52.2% of the market. Both
sit in the low single digits.
The iOS and Android duopoly isn't going anywhere. In fact,
it's further solidifying.The Apple and Google operating systems
combined owned nearly 94% of the U.S. smartphone market, up from
92% a year ago. Microsoft has been slowly growing its position,
but mostly at BlackBerry's expense.
The bigger picture
There are now 173 million smartphone subscribers domestically,
which translates into 72% penetration. Even with all the recent
talk of smartphone saturation in developed markets such as the
U.S., penetration has risen steadily. Mobile penetration was just
59% a year ago.
When it comes to market share figures that investors watch,
there are typically two main flavors to keep a close eye on: unit
sales and installed base. Market share estimates on unit sales
from the likes of IDC or
provide good insight into where the market may be heading, but
installed base figures give a broader picture that encompasses
more historical performance. Installed base estimates are
less volatile in the short run, and it takes a lot more to move
For Apple specifically, installed base figures are extremely
important because the company enjoys the highest customer loyalty
in the industry. Looking at Apple's installed base gives a pretty
good indication of how reliable its recurring revenue from iPhone
upgrades will be. In contrast, Android OEMs typically have very
little loyalty, even if those users are very loyal to the
History repeats itself
Apple has steadily grown its installed base in the U.S., which is
now an estimated 72.8 million iPhone users. That's a healthy
uptick from the 68.7 million it had last quarter. That also
shows Apple is successfully winning over new customers and
first-time smartphone buyers in the U.S., who are among the most
valuable buyers. Android now has 89.8 million domestic users.
Last year, Apple put up a pretty impressive gain with its
installed base during the iPhone 5s/5c launch quarter. The
company's installed base increased from 60 million in September
to 65.2 million in December. While the preference for larger
smartphones is much more prevalent in markets such as China, the
two larger iPhone models that are expected next month will give
Apple a better shot at converting Android users.
At the same time, existing iPhone users who have been longing
for larger displays will all rush to upgrade. Apple still has
of domestic iPhone opportunities. It should be a "
very busy fall
Leaked: Apple's next smart device (warning, it may
Apple recently recruited a secret-development "dream team" to
guarantee its newest smart device was kept hidden from the
public for as long as possible. But the secret is out, and some
early viewers are claiming its everyday impact could trump the
the iPad. In fact, ABI Research predicts 485 million
of this type of device will be sold per year. But one small
company makes Apple's gadget possible. And its stock
price has nearly unlimited room to run for early in-the-know
investors. To be one of them, and see Apple's newest smart
Apple, Inc. Chips Away at Android in the U.S.
originally appeared on Fool.com.
Evan Niu, CFA
owns shares of Apple. The Motley Fool recommends Apple, Gartner,
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