Is Apple’s Strategy Working?

Scott Francis
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After much fanfare about Apple’s strategy in the smartphone space, the data is coming in, quarter by quarter.  Is the strategy working?

When everyone else’s share is falling, and Apple’s is going up, I guess the answer has to be yes.

Obviously there is more to the smart phone market than just the US market share, but the US market has been a great indicator of overall health of cell phone vendors in the recent past, and sometimes a predictor of future behavior in other markets.

Another data point just came out about net-new-users.  Over the last 8 three-month-periods, Android has only exceeded iOS for net-new-users once.  And the last four data points show a precipitous decline in net-new-adds for Android… Worse yet, the chart below doesn’t even include September yet (where the new iPhones were on sale for a few days) or October (the first full month of new iPhone sales).

Chart: Brian Loftus

 On a more personal front, it has been a year since BP3 purchased a Windows PC.  Once upon a time PCs made up more than half our equipment, but now the percentages have declined as with each year, more people request Macs, and when we replace the PCs (which always fall apart, physically, long before their Mac counterparts), the replacements are Macs.  I would guess that we’re not the only company seeing such demographics…

And then, Sunday, Fortune 2.0 reports that the iPhone is winning in the US:

  • iPhone 5s is the otp selling phone at AT&T, Verizon, Sprint, and T-Mobile for September
  • The iPhone 5c is #2 at AT&T and Sprint, and #3 at Verizon and T-Mobile.
  • Apparently price cuts for the Samsung S4 initiated in June helped keep it in the mix as the #2 or #3 phone.

Despite all the noise, it looks like Apple is on a good track with its current strategy – at least for now.