Apple's iPhone US Market Share Hits 55% as Android Shipments Drop

A study conducted by Counterpoint Research indicated that Android smartphone sales in the US dropped in the second quarter of 2023, while Apple's iPhone market share rose to 55% from 45% in Q2 2022, despite a 24% year-on-year fall in worldwide smartphone sales.

The research indicated that top Android companies had substantial decreases in Q2 2023, per 9 To 5 Mac. The worst-hit company was Alcatel, which saw a 69% drop in shipments year over year, followed by Samsung and Motorola.

On the other hand, Google stood out as the lone victor among Android device makers due to the successful introduction of its first-ever foldable product, the Pixel Fold.

However, over the same period, Apple's iPhone shipments saw a more moderate decrease of 6%, demonstrating the company's resiliency in a contracting market. Carriers' incentives greatly assisted Apple's market share increase to 55% by persuading customers to choose iPhones over Android smartphones.

Low Consumer Demand

Counterpoint Research research analyst Matthew Orf ascribed the entire reduction in smartphone sales to weak consumer demand in Q2 2023, according to Mac Daily News.

Despite declining inflation rates and a strong employment market, consumers held off on purchasing new equipment because of the unpredictability of the market.

Despite the general downturn, the foldable market made significant strides in the quarter. Senior Research Analyst Maurice Klaehne said that Google's Pixel Fold and Motorola's Razr+ offered competitive alternatives to Samsung's Galaxy foldables. The foldable market is expected to peak in the US in Q3 2023 due to Samsung's anticipated new Galaxy Z Flip and Z Fold handsets.

According to Hanish Bhatia, associate research director, "strong promotions across postpaid and prepaid" plans helped Apple maintain momentum by continuing to provide carriers extensive promo credits for iPhone 14 orders.

Awaiting the iPhone 15 expectations

Counterpoint Research predicts that the demand for the iPhone 15, which is anticipated to be unveiled in roughly a month, might counteract the decline across Android in Q3 2023, as per a BGR report.

Director of North America Research Jeff Fieldhack said that although Verizon saw negative net additions within its consumer category for the second consecutive quarter, AT&T and T-Mobile recorded positive net additions.

The decline in demand, projected to continue through the beginning of Q3 2023, has been attributed to sluggish upgrade rates and almost record-low churn.

Despite the challenging market circumstances, Apple's large market share and anticipation for the incoming iPhone 15 may help shape the market for the remainder of the year, even as the foldable market continues to grow in the US.