U.S. smartphone shipments declined 24% YoY in Q2 2023, according to Counterpoint Research’s Market Monitor data. Apple iPhone dominates with 55% share of U.S. smartphone market.
This was the third consecutive quarter of YoY declines. Android smartphone shipments declined 38% while Apple shipments fell just marginally at 6% YoY. Android brands like Samsung, Motorola and TCL-Alcatel saw the steepest declines in shipments, while Apple’s shipments were more resilient. As a result, Apple’s share of shipments increased YoY.
Commenting on the decline in smartphone shipments, Research Analyst Matthew Orf said in a statement, “Consumer demand for smartphones was tepid in Q2 2023, with the summer slump in sales coming early. Despite inflation numbers falling through the quarter and ongoing strength in the job market, consumers hesitated to upgrade their devices amid market uncertainty. We expect this trend to continue through Q3 2023, but the expectations from the upcoming iPhone 15 remain bullish.”
“Despite fewer shipments from Apple compared to the same quarter last year, the brand’s share of shipments was still up 10% YoY. Apple’s resilience was driven by strong promotions across postpaid and prepaid,” Associate Research Director Hanish Bhatia said in a statement.“ Verizon, AT&T and T-Mobile continued to offer $800+ promo credits for the iPhone 14 while old-generation iPhones were also steeply discounted across prepaid. We are seeing no weakness in the overall promotional activity.”
Director of North America Research Jeff Fieldhack said in a statement, “AT&T and T-Mobile reported positive net adds, but Verizon reported negative net adds within its consumer segment for the second consecutive quarter. The net-add activity remains comparable to last year, but the upgrade rates have been lower, causing overall weakness in demand. Near-record low churn has also had a dampening effect on new device sales. Weakness is likely to continue through the start of Q3 2023, but stronger iPhone 15 demand could offset weakness across Android.”
MacDailyNews Take: Why do 45% of the U.S. suffer along with pretend iPhones? Half of the people in this world are, by definition, below average intelligence — and even the top 5% of those on the left side of the IQ bell curve, in the U.S. at least, are smart enough to get real iPhones, too!
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So now are they a monopoly?
To determine if a firm has “monopoly power,” courts generally require that a firm has a minimum market share of between 70% and 80%.
Even if a company builds a monopoly, it doesn’t mean what it’s doing is illegal.
So, in a nutshell: No.
Depends. As a smartphone OEM, no. As an iOS App provider, yes.