- US smartphone market saw a 24% year-on-year decline
- Apple’s iPhone market share increased to 55%
- Major Android brands take the biggest hit
The US smartphone market saw a 24% year-on-year decline in the second quarter of 2023, with major Android brands taking the biggest hit. Alcatel suffered the worst decline, with a year-on-year fall of 69%. Samsung’s shipments fell 37%, and Motorola was down 17%. Google was the only winner, thanks to the launch of the Pixel Fold.
Apple’s iPhone market share increased to 55% in the same quarter, thanks to less severe declines in shipments compared to other Android brands. Research Analyst Matthew Orf commented, “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.”
Counterpoint Research noted that Apple’s resilience was significantly helped by carrier promotions. Verizon, AT&T and T-Mobile offered $800+ promo credits for the iPhone 14 while old-generation iPhones were steeply discounted across prepaid. Similarly, both the Google Pixel Fold and Pixel 6a were “heavily subsidized in prepaid channels.”
