New Models Appeal to Loyal Buyers, with Few Android Switchers
Consumer Intelligence Research Partners (CIRP) released analysis of the results from its research on Apple, Inc. (NASDAQ:AAPL) for the fiscal quarter that ended September 24, 2016.
The September 2016 fiscal quarter includes two weeks' of sales of iPhone 7 and 7 Plus models.
CIRP finds that the new iPhone 7 and 7 Plus accounted for 43% of total US iPhone sales in the quarter, with iPhone 7 at 31% and iPhone 7 Plus at 12% (Chart 1). iPhone SE, in its first full quarter of availability, had a 9% share.
In a quarter with only two weeks' of sales, iPhone 7 and 7 Plus grabbed significant share of iPhones sold. We attribute this to slow iPhone sales in the weeks leading up to the launch of these two new models, as well as a positive reception for the new 7 and 7 Plus models. It's difficult to compare this launch to the September 2015 launch, when the iPhone 6S and 6S Plus, which were available for less than a week, and accounted for 24% of sales in the quarter.
Among iPhone 7 and 7 Plus buyers, 17% upgraded from iPhone 6S and 6S Plus, and 36% upgraded from iPhone 6 and 6 Plus. In contrast, among iPhone SE buyers, almost half (47%) upgraded from iPhone 5S/5C, and another 21% from older iPhone models (Chart 2). 9% of iPhone 7 and 7 Plus buyers upgraded from an Android phone, while 17-21% of other iPhone buyers came from Android.
The new 7 and 7 Plus models attracted mostly loyal iPhone owners, rather than Android owners. Only 9% of 7 and 7 Plus buyers had an Android phone, while for older iPhone models, many more buyers, around 20%, came from Android. In contrast, at this time last year, when Apple launched the 6S and 6S Plus models, 17% of buyers who bought the then-new 6S and 6S Plus came from the Android operating system.
CIRP bases its findings on its survey of 500 US Apple customers, surveyed from September 25-October 10, 2016, that purchased an iPhone, iPad, or Mac in the US in July-September 2016 period. For additional information, please contact CIRP.