It is probably one of the most recognized products in the world. Most of the people have an opinion on this as well as if the numbers are to be believed then many people have also bought it. We are talking iPhone. According to an analyst, Apple 2 billion iPhones have been sold. “Unlike the 1 billionth, there was no announcement, no celebration,” said Horace Dedieu, an analyst at Asimco. Partly that’s because Apple stopped reporting unit shipments, but partly because that’s why. Because talking about 2 billion is not as interesting as it is about 1 billion.”
First billion in 9 years, second billion in 5 years
It was in 2016 when Apple actually issued a short press release announcing that it had sold a billionth iPhone. Apple CEO again Tim Cook said, “Last week we crossed another big milestone when we sold the billionth iPhone. We’re never ready to make the most, but we’ve always strived to make the best products that matter. Thank you to everyone at Apple for helping change the world every day.”
The first iPhone was launched in 2007 which means it took nine years for Apple to see one billion iPhones. Over the next five years, it has sold another billion. Dediu says it estimates there are about 1 billion iPhone users and the number is growing. It is estimated that there are about 3.8 billion smartphones in the world. Dediu claims that iPhone users are about 26% of all smartphone users.
about four years ago, iOS The market share was around 13%, which has now doubled and contributed to another billion iPhones.
Two Markets Where Apple Dominates
According to Dediu, the share of iPhone users in the US is about 60 percent. Counterpoint Research estimated that Apple had a 65% market share in Q4 2020 – the quarter after the iPhone 12 series was launched. In the UK, that number is around 50%, with a survey in both countries showing that between 14% and 10% of users switch to an iPhone every two years. In both the US and the UK, telecommunications carriers regularly offer incentives for iPhone users to switch. Apple offers high trade-in-exchange offer-prices in both countries which also adds to the rush to buy new iPhones. In China, which is the world’s largest smartphone market, Apple had a market share of about 13% in the first quarter of 2021. In India, Apple has been growing for the past few quarters and is the market leader in premium smartphones. However, the share of Apple in the overall market is very less.
The ‘second-hand’ smartphone market
Another reason for the rapid growth of iPhones over the past five years is the secondary market. Didiu calls this the “thriving secondary market”. The analyst says the used smartphone market is dominated by iPhones and that the floor for entry into the iPhone ecosystem essentially drops to $0. Earlier this year, Counterpoint released a report on the secondary market. According to Jeff Fieldhack, Director of Research at Counterpoint, “Apple’s appetite for the secondary market hasn’t waned. In fact, over the past year, it has grown compared to its competitors.” Apple’s share in the secondary market in 2020 was around 44%.
Fieldhawk further stated that the average selling price in Apple’s secondary market is about three times the average of all its competitors. “Even with the rollout of 5G by more than 150 mobile operators in over 70 countries, the demand and ASP of Apple’s refurbished LTE portfolio continues to grow. This is helping Apple grow its installed base as many of Apple’s buyers in the secondary market are first-time buyers,” Fieldhack said.
The online refurbished market is also flourishing. Counterpoint expects more secondary market volume to move to other regions such as Africa, Japan, India and Europe. “There are established secondary market companies, with new companies also moving into these areas. There is also an appetite for flagships from premium brands, but at mid-tier pricing,” said Glen Cardoza, senior research analyst at Counterpoint.
Ever since the iPhone was launched in 2007, Apple’s ecosystem has expanded and the company’s market capitalization value has crossed $2 trillion. Despite having many products and services, the iPhone remains Apple’s MVP – the most valuable product.
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