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The iPhone 7 is drawing fewer Android users than the previous iPhone, the 6s, according to research firm Consumer Intelligence Research Partners (CIRP).
The majority of new iPhone purchases are still coming from Apple’s existing customer base. Apple has repeatedly said that convincing Android users to switch is a key part of its growth strategy. Android has a much greater user base than Apple: Android controls close to 80% of the smartphone market.
However, CIRP’s research clearly indicates that the new iPhone 7 isn’t drawing many Android users to switch. This is partially because of the model’s cost. New iPhone models are consistently around $700, and can be more expensive in some markets because of import tariffs.
The vast majority of Android phones cost less than a third of that, as Android has become the operating system of choice for cheaper smartphone models that are popular in the world’s developing regions. Manufacturers of these cheaper Android models are competing mostly on cost, driving down their prices. So the price gap between new iPhones and Android phones will continue to widen, making it harder for Apple to attract more Android users in many markets.
The iPhone is also set to face tougher competition from Android devices among high-cost smartphones thanks to Google’s new Pixel phone, which has received favorable reviews. This will put increased pressure on Apple to make a splash with the new iPhone models it releases next year. Reports indicate that Apple may release as many as three new iPhone models in 2017 to help attract a broader array of new users, including a new premium all-glass model with an OLED touchscreen.
The global smartphone market is expected to slow considerably over the next few years. Despite a record-setting holiday quarter, 2015 was likely the last year of double-digit growth for smartphone shipments.
Mature markets were at the heart of this year’s deceleration. Adoption has reached new highs in key markets in the United States, Europe, and China. The pool of first-time buyers in these countries is shrinking rapidly, and sales are now primarily coming from phone upgrades.
Meanwhile, emerging markets will continue to see robust shipment growth. India and Indonesia, in particular, will help fuel a large share of the shipments growth within the global smartphone market over the next few years.
BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on smartphones by country that forecasts the market through 2021 to reflect slower, stabilizing growth in the long term.
Here are some key points from the report:
In full, the report:
To get your copy of this invaluable guide, choose one of these options:
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the smartphone market.
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