The fierce competition between iOS and Android seems to have taken a new turn. A recent report by research firm CIRP reveals that the percentage of new iPhone activations in the United States has reached an all-time low, while Android has gained significant ground. Here are the details:
iPhone activations fall alarmingly, Android market share rises spectacularly
CIRP has released a report that reveals a significant decline in iPhone activations in the United States compared to Android devices. Activation, the process of registering a new phone in Apple’s system, is a key indicator of market share. Apple’s share of new smartphone activations in the US fell to its lowest level in six years, according to the latest data.
According to the report, the rate of new iPhone activations in the United States has seen a sharp decline over the past year. The rate, stable at 40% in the first two quarters of 2023, fell to 33% in the first quarter of 2024. This decline signals an increase in market share for Android devices, which now account for two out of three new activations. It’s the lowest rate Apple has seen since the release of the iPhone X in 2017. CIRP suggests some possible reasons for this downward trend.
First, the perceived lack of new features in recent iPhone models has not provided enough motivation for consumers to upgrade to a new iPhone. Another reason is that the phones I currently own are still capable enough; even an iPhone 11 owner can use their device without major issues. The stability of the design also discouraged people from changing their phones.
High prices, a hindrance to iPhone sales
In addition to these factors, the CIRP report also identifies the high prices of iPhones as a possible hindrance to sales. Even the cheapest models in the current lineup cost more than $700, a significant amount for many consumers. In contrast, there is a wide range of attractively priced Android smartphones under $400.
“The high prices of iPhones seem to have deterred some customers from purchasing the latest models”said Josh Lowitz, co-founder of CIRP. “Even older models like the iPhone 11 and iPhone XR remain capable enough for the needs of many users.”
The outlook for a difficult year for Apple in the smartphone market
Analysts warn that Apple could have a tough year in the smartphone market if this trend continues. Although iPhone sales remain strong globally, its market share appears to be slipping in favor of Android rivals such as Samsung and Google.
“If Apple fails to bring exciting innovations to its new iPhone models, it risks losing even more ground to aggressive competition from the Android camp”Lowitz said. “Consumers are becoming increasingly reluctant to spend big on a new phone if it doesn’t deliver radical improvements.”
Despite these challenges, Apple remains a key player in the smartphone market, but will need to be more innovative if it wants to maintain its market share. Followers of the telecom industry are eagerly awaiting the next moves of the Silicon Valley giants in this strategic game for smartphone supremacy.
Tags: iPhone decline Alarming report shows falling activations
