iPhone 7, 7 Plus Sales Nearly Match 6S, 6S Plus Performance

Newest Models Not Attracting Android Switchers

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 April 1, 2017.

CIRP finds that the new iPhone 7 and 7 Plus accounted for 68% of total US iPhone sales in the quarter, with iPhone 7 at 35% and iPhone 7 Plus at 33% (Chart 1).

Chart 1: iPhone Models US Sales Mix, Fiscal Quarters

Chart 1: iPhone Models US Sales Mix, Fiscal Quarters

iPhone buyers chose 7 and 7 Plus models in slightly lower proportions than the 6S and 6S Plus in the same quarter a year ago. Despite upgraded features like each new flagship iPhone release, the legacy models accounted for almost a third of iPhones sold in the quarter, the highest percentage since Apple started releasing two new phones each fall in 2014.

Sales of iPhone 7 and 7 Plus were about equal, which is good news for Apple. The large-format Plus models accounted for 41% of total sales, a steady increase since the launch of the original Plus model in 2015. Consumers have signaled a willingness to not only purchase a more expense, larger model, which also helps Apple’s iPhone average selling price (ASP).

Among iPhone 7 and 7 Plus buyers, 15% upgraded from iPhone 6S and 6S Plus, and 41% upgraded from the two year-old iPhone 6 and 6 Plus. In contrast, among this quarter’s iPhone 6S and 6S Plus buyers, 14% upgraded from the iPhone 6 and 6 Plus models, and another 49% upgraded from iPhone 5S/5C or older (Chart 2). 10% of iPhone 7 and 7 Plus buyers upgraded from an Android phone, while 26% of iPhone 6S and 6S Plus buyers came from Android.

Chart 2: Previous OS and Model of iPhone Buyers, March 2017 quarter

Chart 2: Previous OS and Model of iPhone Buyers, March 2017 quarter

We see very strong iPhone loyalty, and conversely continued lower switching from Android phones. With only 10% of 7 and 7 Plus buyers switching from an Android phone, now 3-6 months after the launch of those models in September 2016, we see how the premiere iPhone models sell mostly to the installed base of iPhone owners. The iPhone 6S and 6S Plus models have a higher percentage of Android switchers, and the entry level iPhone SE also brings in first-time smartphone buyers.

CIRP bases its findings on its survey of 500 US Apple customers, surveyed from April 1-12, 2017 that purchased an iPhone, iPad, or Mac in the US in January-March 2017 period. For additional information, please contact CIRP.