Wide range of options and pricing pressure affect market share
Consumer Intelligence Research Partners, LLC (CIRP), today released analysis of the results from its research on Apple, Inc. (NASDAQ:AAPL) for the 30-day period following the launch of the iPhone X on November 3, 2017.
CIRP finds that the new iPhone X accounted for 30% of total US iPhone sales in the 30- day period (Chart 1).
It’s difficult to say whether iPhone X met, exceeded, or missed expectations, since Apple has never launched a phone in this way before. Based on the heightened publicity, we suspect some disappointment, with iPhone X accounting for less than one-third of US unit sales immediately following the launch. Of course, early supply constraints may have diminished sales, although as of now supply appears plentiful. In addition, we think that some delayed iPhone 8 and 8 Plus demand contributed to the situation. After Apple announced the new phones in September, iPhone buyers waited to buy anything until after the release of the iPhone X. They evidently wanted to see what a thousand-dollar phone looks and feels like, and then in many cases bought the seven hundred dollar phone.
In addition to launching three new phones in an unusual sequence, Apple now has eight models available, with multiple storage configurations and colors. This makes comparisons to early launches a little tricky. We can say, though, that the newest phones, the combined iPhone X, 8, and 8 Plus, account for a smaller percentage of sales than the newly-launched phones did in the previous three years. Despite being third in line, the year-old iPhone 7 and 7 Plus grabbed over 20% of sales. Those models have most of the features of the newest phones, and with smaller storage configurations are priced much more attractively. Even the oldest phones, the iPhone 6S and 6S Plus, which are now over two years old, accounted for about 6% of sales.
CIRP bases its findings on its survey of 300 US Apple customers that purchased an iPhone in the US in the 30 days following the launch of iPhone X on November 3, 2017. For additional information, please contact CIRP.