The iPhone US market share hit an all-time high last quarter, giving it more than 50% of the total US market for the first time ever, according to a new market intelligence report.

Apple also dominates global premium smartphone sales, accounting for 78% of the $1,000+ segment worldwide …

iPhone US market share

In measuring the total iPhone US market share, Counterpoint Research is looking not just at new sales, but at the total number of active smartphone users – what is known as the “active installed base.”

The Financial Times reports on this new milestone.

Apple has overtaken Android devices to account for more than half of smartphones used in the US, giving the iPhone maker an edge over its rival as it pushes into sectors including finance and healthcare.

The 50 per cent landmark the iPhone’s highest share since it launched in 2007 was first passed in the quarter ending in June, according to data from Counterpoint Research. Some 150 devices using Google’s Android operating system, led by Samsung and Lenovo, accounted for the rest […]

The FT says that while new phone shipments can fluctuate wildly from quarter to quarter, based on the timings on smartphone launches, the active installed base is a more meaningful measure of popularity.

The active installed base takes into account the millions of people brought into Apple’s ecosystem through the used phone market, as well as those who use iPhones purchased years ago.

CSS Insight analyst Ben Woods agrees, saying that while quarterly shipments may grab the headlines, Apple just “quietly grabs more share every year.”

He says the installed base – something Apple has always emphasized, and described as its “engine” for the company – is increasingly important as the iPhone maker continually boosts the revenue it makes from existing iPhone owners.

“Anyone who buys an iPhone whether it’s second-hand, third-hand, or fourth-hand will probably give Apple some money buying apps, paying for iCloud, using Apple Music, or transacting on Apple Pay. And that’s a model that no one else, really, has been able to replicate.”

Services services don’t just deliver revenue: they deliver mega profits too. While Apple’s overall margin is around 37-38%, it’s estimated that Services margins exceed 70%.

iPhone dominates global premium sales

A separate Counterpoint report says that Apple also continues to dominate the global market for premium smartphones.

The premium segment is defined as a wholesale price of $400+. Here, Apple takes 57% of the world market. In the ultra-premium slice of $1000+ devices, Apple owns 78% of the segment.

Counterpoint’s Varun Mishra said that this upper slice of the market was not just profitable, but also relatively untouched by the financial downturn.

“This trend in the ultra-premium market is ubiquitous across regions, despite inflationary pressures. This is because affluent consumers are not affected by the current economic headwinds. Hence, the low-to-mid-price segment has been hit hard by the recent macro headwinds while the high-price segment still looks solid, further boosting average selling prices. Also, the increasing number of financing schemes and a growing ecosystem of trade-ins and EMIs [monthly payment plans] are also helping consumers to upgrade their devices without paying the total price upfront.”

Photo: Mathieu Improvisato/Unsplash

FTC: We use income earning auto affiliate links. More.

Check out 9to5Mac on YouTube for more Apple news:

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

About the Author

Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!

Ben Lovejoy's favorite gear