More US Consumers Choosing Smartphones as Apple Closes the Gap on Android
According to the latest research from Nielsen, the high-profile launch of Apple's iPhone 4S in the Fall had an enormous impact on the proportion of smartphone owners who chose an Apple iPhone.
Context & Ripple Effects
U.S. smartphones had already become the majority of new cellphone purchases by June 2011, enlarging the pool of buyers choosing between mobile platforms. Earlier Nielsen coverage found Apple leading the broader smartphone race while Android drew more recent customers; the iPhone 4S launch shifts that acquisition contest toward Apple.
First-order effects
- Apple gains momentum among U.S. smartphone owners following the iPhone 4S launch, narrowing Android's lead in Nielsen's measurement.
- Android faces a more competitive customer-acquisition market as iPhone demand strengthens among new smartphone buyers.
Second-order effects
- Apple and Android must place greater weight on flagship launches to win buyers entering a smartphone market that had already overtaken new cellphone purchases.
- The competitive focus shifts from installed leadership alone to each platform's ability to convert the next wave of U.S. phone purchasers.
Third-order effects
- If flagship-driven swings persist, U.S. smartphone competition will be shaped by recurring product cycles and the pace at which remaining cellphone buyers migrate to smartphones.
- As smartphone buying becomes the default for new handsets, platform share gains become harder to separate from device-launch execution.
The trend: The U.S. handset market is becoming a smartphone-first platform contest in which major device launches can rapidly alter buyer preference.