New iPhone activations have fallen to a six-year low in the U.S. smartphone market, compared to Android, according to a new report from Consumer Intelligence Research Partners (CIRP).
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While CIRP notes that Apple's installed smartphone is higher than its recorded activations, the data shows that its share of new iPhone activations fell from 40% to 33% last year, suggesting a shift from the higher market shares Apple enjoyed in previous years.
Historically, when competitors like Android, Blackberry and Windows phones were more prevalent, iPhone activation share hovered around one-third. This rose steadily until the first year of the COVID-19 pandemic, when a number of factors contributed to a sharp increase in activations. However, Apple's iPhone share appears to have returned to its long-term average, with two out of three new smartphone activations now coming from Android devices
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CIRP suggests that the decline is due to the increased price of modern smartphones as well as better durability. While innovation has slowed, there has been a shift from two-year subsidized purchases to more transparent purchase plans, which has prompted consumers to hold on to their devices for longer. This trend appears to be affecting iPhone sales more significantly than Android devices, suggesting that Apple may need to adjust its strategy to regain market momentum.
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The report covers a 12-month period ending each quarter and includes data from CIRP's quarterly survey of mobile phone customers. The goal of this approach is to remove seasonal spikes typically associated with new device launches and holiday sales, providing a clearer picture of ongoing trends, according to the company.
Source: macrumors
