Apple's Share of US Smartphone Market Creeps Back Up - eMarketer

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Apple's Share of US Smartphone Market Creeps Back Up

Still the No. 2 mobile OS in the country

July 22, 2016

Apple’s April report on the company’s fiscal Q2 earnings included a decline in revenues—for the first in 13 years. With Apple’s next set of results coming next week, the iPhone 7 is top of mind.

US iPhone Users, 2014-2016 (millions, % change and % of total smartphone users)

This year, eMarketer estimates, 90.1 million people in the US will own an iPhone and use the device at least monthly. That amounts to 43.5% of all smartphone users in the country—a share that ticked slightly up this year, but remains behind Android’s 52.0% of the user base.

Still, nearly 8 million more people will own iPhones this year than last year, eMarketer estimates, for growth of more than 9%. iPhones are also gaining share in the UK market—where they are also behind Android, but performing better than other options like Windows Phones.

Whether the iPhone 7 will help juice Apple’s handset sales remains to be seen; most smartphone owners wait years to get new handsets rather than upgrading anytime a new model becomes available. And lower-priced offerings like the iPhone SE may be a more realistic way to tap into demand in markets like China and India—where Apple is reported about to open stores.

Proximity Mobile Payment Users and Penetration in China, 2014-2020 (millions, % change and % of smartphone users)

Asia-Pacific also represents a large potential market for mobile proximity payment services like Apple Pay. There will be 37.5 million US mobile proximity payments users in the US in 2016, according to eMarketer. By 2019, that figure will rise to 69.8 billion. But China already has a larger user base than that.

There will be 195.3 million proximity payment users in China this year, rising to 323.3 million by 2020.

“Apple continues to move the ball forward when it comes to enabling more seamless payment experiences for users of its products,” said eMarketer senior analyst Bryan Yeager. “At the company’s Worldwide Developer Conference (WWDC) in June, it unveiled Apple Pay for the web, with support for the Safari browser on Macs and iPhones, as well as new Apple Pay capabilities for its iMessage mobile messaging app in its upcoming iOS 10 release this fall. Both capabilities provide more opportunities for people to use Apple Pay, and eMarketer will be closely watching whether or not more payment touchpoints on the web and in messaging will translate to increased Apple Pay usage at the physical point of sale.

“Also important to note is that the global rollout of Apple Pay continues at a steady pace, with plans to launch the service in France, Hong Kong and Switzerland by the end of the summer,” Yeager said.

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