iOS Dominates the US Market: Trends and Insights

Did you know that Apple’s iOS accounted for a staggering 37% of global smartphone sales in the last quarter, representing a 10% year-over-year increase? This remarkable performance is driven by the continued adoption of the iPhone 15 series, solidifying Apple’s dominance in the smartphone market.

The latest Worldpanel ComTech Smartphone Operating System (OS) data reveals that while the global smartphone sales volumes have increased by a modest 1% year-on-year, the United States has seen a more substantial 13% increase. This growth is attributed to strong performance from both Apple iOS and Android OS, with 18% and 6% year-over-year increases, respectively. Notably, the iPhone 15 series accounts for a remarkable 1 in 4 smartphones sold in the U.S. during the fourth quarter.

In the top 5 European markets (France, Germany, GB, Italy, and Spain), smartphone sales volumes grew by 4% year-on-year, driven by a stellar uplift in Germany, Spain, and France. Apple’s iOS performed exceptionally well in these markets, with iPhone volumes increasing by 19% year-on-year.

Key Takeaways

• Apple’s iOS accounted for a staggering 37% of global smartphone sales in the last quarter, representing a 10% year-over-year increase.
• The United States has seen a 13% increase in smartphone sales, with both Apple iOS and Android OS experiencing strong growth.
• The iPhone 15 series accounts for 1 in 4 smartphones sold in the U.S. during the fourth quarter.
• In the top 5 European markets, smartphone sales volumes grew by 4% year-on-year, with Apple’s iOS performing exceptionally well.
• The continued adoption of the iPhone 15 series is driving Apple’s growth in the global smartphone market.

iOS Market Share: Apple’s Commanding Presence

The latest Worldpanel ComTech Smartphone Operating System (OS) data indicates that Apple’s iOS had a particularly strong performance, accounting for 37% of global smartphone sales (+10% year-on-year). The continued adoption of its iPhone 15 series is driving this growth. Over 1.9 billion iPhones have been sold since the product’s inception, and in the year 2020, Apple shipped a total of 206.1 million iPhones. Apple has secured a remarkable presence in the smartphone market, with 6 out of the top 10 best-selling smartphone models in January 2021 being Apple-designed. Apple’s market share has shown a generally positive trend over the years, starting at 14.70% in CY 2017 and gradually increasing to 18.40% in CY 2022.

iPhone’s Dominance in the US Market

iPhones hold a dominant market share of 65% in smartphone sales within the United States. Between 2016 and 2020, the iPhone has maintained a strong and consistent presence in the North American smartphone market, with its market share ranging from 43.50% to 47.40%. In the US market specifically, the iPhone’s market share has fluctuated between 29% and 65% across different quarters over the past few years, indicating its substantial presence and popularity among US consumers.

Apple’s Success Factors: Loyalty, Gifting, and Trade-in Programs

There are several factors contributing to Apple’s success with the iPhone, including increased loyalty, gifting, and trade-in programs. 88% of iPhone buyers that purchased in the 3 months to December 2023 upgraded from an iPhone, indicating high customer retention. Over half of iPhones purchased in the same period were purchased as gifts, with Gen Z (24yrs and under) being the top beneficiary. iPhone owners are also increasingly trading-in their old devices, with 1 in 5 iPhone buyers stating that they were influenced by a trade-in scheme in the 3 months to December 2023. Apple’s generous trade-in offers, such as $400 off the iPhone 15 for trading in an iPhone 14, are driving this trend.

Consumer Preferences and Demographic Insights

As the smartphone market continues to evolve, understanding the demographics and preferences of iPhone users becomes increasingly crucial. A closer examination of the age and gender breakdown, as well as the income and education levels of iPhone owners, provides valuable insights into the profile of this sought-after consumer segment.

Age and Gender Breakdown of iPhone Users

According to a December 2021 poll of U.S. mobile users, around 58 percent of people using smartphones aged 18-34 used the iPhone as their primary device, while users between the ages of 35-54 in the United States preferred using an Android phone, with 53% of this age group reporting using an Android-powered smartphone. Globally, females account for 51% of iPhone users, while males account for 49%.

Income and Education Levels of iPhone Owners

iPhone users earn more than Android users, with the average iPhone app user earning $85,000 per year, which is 40% higher than the average Android phone user, who earns $61,000 per year. iPhone users are also better educated, with 27% more likely to hold a graduate/Ph.D. education compared to Android users. Only 28% of Android users had a university degree, while 72% had not completed post-secondary education.

Regional Trends and Market Dynamics

The iPhone’s dominance is particularly pronounced in the North American smartphone market, where it has maintained a strong and consistent presence over the years. Between 2016 and 2020, the iPhone’s market share in this region ranged from 43.50% to 47.40%, solidifying its position as a market leader and showcasing its ability to capture a significant share of the smartphone market in North America.

iPhone’s Strong Foothold in North America

The United States, a key North American market, has seen a 13% increase in smartphone sales, attributed to strong growth from both Apple iOS and Android OS, with +18% and +6% year-on-year growth respectively. The iPhone 15 series accounts for 1 in 4 smartphones sold in the U.S. during the fourth quarter, further cementing the iPhone’s market share and popularity among American consumers.

Market Share Fluctuations in Europe and Asia

In the top 5 European markets (France, Germany, GB, Italy, and Spain), smartphone sales volumes grew by +4% year-on-year, driven by a stellar uplift in Germany, Spain, and France. Apple iOS performed well in these markets, with iPhone volumes increasing +19% year-on-year. Across the Asia Pacific region, sales volumes vary, with Mainland China and Japan seeing a year-on-year decline, though less steep than the previous year. In Mainland China, consumers are moving toward the domestic brand Huawei, with Harmony OS sales share jumping +32% year-on-year, while in Japan, consumers are increasingly picking up iPhones, with sales share jumping +3% points year-on-year.

Brand Loyalty and Customer Satisfaction

Apple’s iPhone has consistently demonstrated remarkable iPhone brand loyalty among its users. According to a study by 451 Research, a third-party research organization commissioned by Apple, the iPhone 14 boasts an impressive 99% customer satisfaction rating. This is a testament to the unwavering loyalty and satisfaction that iPhone owners have with the brand.

However, an independent study conducted by ASCI in 2023 estimates the iPhone customer satisfaction level at a slightly lower, but still respectable, 81%. While there is a discrepancy between the two research findings, the high levels of satisfaction reported by both studies underscore the strong emotional connection that iPhone users have with the brand.

Apple’s strategic focus on driving repeat business is paying off, with 88% of iPhone buyers that purchased in the 3 months to December 2023 upgrading from an iPhone. This remarkable statistic indicates that the company has successfully cultivated a loyal customer base, who consistently choose to remain within the Apple ecosystem when upgrading their smartphones.

The combination of exceptional customer satisfaction and high brand loyalty positions the iPhone as a dominant force in the smartphone market, solidifying Apple’s strategic advantage in the industry.

Conclusion

The data reveals that Apple’s iOS has maintained a strong presence in the global smartphone market, with the iPhone accounting for 37% of global smartphone sales in the fourth quarter of 2023. This dominance is particularly pronounced in the United States, where the iPhone holds a commanding 65% market share. This remarkable success is driven by a confluence of factors, including increased customer loyalty, effective gifting programs, and attractive trade-in offers.

The iPhone’s appeal extends beyond its technical capabilities, as it resonates with a more affluent and better-educated consumer segment. iPhone users tend to earn higher incomes and possess higher levels of education compared to their Android counterparts, further solidifying Apple’s strategic advantage in the smartphone industry.

While the iPhone faces some challenges in certain regional markets, such as Asia, it continues to cement its position as a leading smartphone brand globally, particularly in the lucrative North American market. Apple’s unwavering focus on innovation, customer satisfaction, and brand loyalty has enabled the iOS to maintain its market dominance and strategic advantage in the rapidly evolving smartphone industry.