Apple saw iPhone activations decline to 33% of new smartphone activations in the US in Q1 2024, the lowest number in the country since 2017, according to a market-research firm. In the year-ago quarter, iPhones accounted for 40% of new smartphone activations in the US. In just 12 months, the company has seen its share fall by 7%.
The decline doesn’t necessarily stem from a lack of interest in Apple’s products — iPhone’s share of the installed smartphone base has actually increased. Partly it’s because iOS handsets last so long.
Android smartphones clawing back market share from iPhone in US
Based on the numbers shared by CIRP, new iPhone activations peaked in Q1 and Q2 2023, with Apple’s share steadily declining since then.
The company’s 33% share in Q1 2024 is the same as in 2017. This means that new Android phones accounted for nearly 67% of phone activations in the same timeframe. Or two out of three smartphones sold in the US were Android.
Apple saw steady growth in new iPhone activations until 2021, with its share steadily declining since then.
A longer iPhone replacement cycle
CIRP says multiple factors are behind the slowdown in iPhone sales. With increased prices, they have become more durable. Users are also holding onto their phones for longer due to “more transparent phone purchase plans” as they shift from two-year subsidized carrier contracts.
Android users have to replace their devices more often, which is why the increased percentage of Android activations hasn’t resulted in a larger share of the installed smartphone base.
The lack of major new features has also played a key role in slowing down the upgrade cycle, too.
iPhone sales declined in China, too
iPhone sales have slowed down not just in the US but in other major markets, too. A recent report revealed that in Q1 2024, iPhone sales slid by a staggering 19.1% in China compared to Q1 2023. This was primarily due to Huawei’s strong comeback in its home market.
In the same timeframe when Apple saw a decline in iPhone sales, the Chinese company registered a whopping 69.9% growth.
Analysts, however, are hopeful that iPhone sales will recover in the country. This should pick up pace once Apple unveils iOS 18 and its suite of AI features at WWDC in June.
