Apple’s iPhone market share for the number of activations in the U.S. has dropped drastically, with new data revealing that the figure used to hover around an unrivaled 40 percent. Now, it has dropped to 33 percent, making it the lowest number in years. While weak iPhone demand could be the culprit, the report highlights other reasons why activations are dropping, which we will discuss here.
Improved durability of iPhones is another reason why consumers are taking significantly longer to upgrade
Data for the past four quarters was provided by Consumer Intelligence Research Partners (CIRP), showing that iPhone activations are slowly on the decline. It is clear that Apple is facing tough competition from Android smartphone makers, who now command two-thirds of the market share of activations. However, it is important to note that many devices running Google’s mobile operating system are highly affordable compared to iPhones, and that is one of the few reasons Apple’s product activations have lowered.
“As the prices of smartphones increased, happily their durability did, too. The rapid escalation of features also slowed. The move from two-year subsidized phone purchase contracts to more transparent phone purchase plans has motivated many smartphone owners to wait a little longer to upgrade from their current phone. That may be affecting Apple sales a bit more than their Android competitors.”
A large percentage of customers may be waiting to upgrade to the iPhone 16 series, but there have been conflicting reports on Apple’s upcoming flagship lineup. A couple of analysts have predicted that the new range will lack compelling features, which may result in Apple’s iPhone shipments dropping 15 percent for the entire year. However, separate reports have mentioned that the iPhone 16 will pack a bigger Neural Engine, allowing it to handle on-device AI capabilities, with generative AI features also baked into iOS 18, which can boost sales.
Assuming Apple can offer the same price while delivering on the features front during the official launch later this year, it might result in those activation percentages picking up in the next few quarters. As always, we will provide updated figures on the technology giant’s progress.
News Source: CIRP