iPhone US Installed Base Inches Up

iPhone 7, 7 Plus Comprises One-Third of Installed Base

Consumer Intelligence Research Partners, LLC (CIRP), today released analysis of the results from its research on Apple, Inc. (NASDAQ:AAPL) for the fiscal quarter that ended July 1, 2017.

CIRP analysis indicates that the iPhone US installed base reached 141 million units as of July 1, 2017, compared to 136 million units as of the end of the March 2017 quarter and 124 million units as of the end of the June 2016 quarter (Chart 1).

Chart 1: US Installed Base of iPhones by Model

Chart 1: US Installed Base of iPhones by Model

Within the installed base, the new iPhone 7 and 7 Plus account for 48 million units, or 34% of the total. The 2015 release iPhone 6S and 6S Plus account for 47 million, or 33%, and the two year-old iPhone 6 and 6 Plus comprise 39 million units, or 27% of the total installed base.

Within the Apple iPhone US installed base, the new iPhone 7 and 7 Plus and the year-old 6S and 6S Plus each account for a third of phones in use. The oldest phones, the iPhone 6 and 6 Plus, still have a meaningful share, while iPhone SE even grew slightly, to 6% of the base. The installed base now consists virtually entirely of phones sold in the past 33 months. The oldest of these phones and SE models represent the best chance for sales of the anticipated new phones later this quarter, and sales will depend on how any new features appeal to these old phone owners.

As of July 1, 2017 the installed base grew 4% relative to the March 2017 quarter and 14% relative to the June 2016 quarter. For comparison, one year ago, the iPhone US installed base grew 2% over the prior quarter and 28% over the prior year.

Growth in the US installed base, while there, continued to slow down relative to earlier periods. This slowdown shouldn’t surprise anyone. With 141 million phones in the hands of US consumers, or close to half the US adult and teen population, and operating system switching at all-time lows, we expect the base to neither grow nor shrink considerably for the time being.

At 53 million units, iPhone “Plus” models (6 Plus, 6S Plus, and 7 Plus) account for 38% of the installed base as of July 1, 2017, compared to 29% as of the June 2016 quarter.

After over three years, and after initial skepticism, larger-format Plus model phone market acceptance is firmly established. Apple gave consumers more choices, which succeeded in boosting the average iPhone selling price, with the larger screen phones and sales of larger storage options across all models.”

CIRP bases its findings on its survey of 500 US Apple customers, surveyed from July 1-13, 2017 that purchased an iPhone, iPad, or Mac in the US in April-July 2017 period. For additional information, please contact CIRP.