The iPhone 7 and 7 Plus have seen a higher adoption rate compared to the iPhone 6S and 6S Plus. According to data from Consumer Intelligence Research Partners (CIRP) (via 9to5Mac), the higher adoption during the first month of launch is largely due to increasing Android switchers. However, the iPhone 7 adoption fell short of the 2014 iPhone 6 launch.
iPhone 7 adoption still lags behind 2014 iPhone 6
CIRP partner and co-founder Josh Lowitz said that the combined share of the iPhone 7 and 7 Plus was slightly higher than 71% share of the iPhone 6S and 6S Plus. But it was considerably lower than 81% share for the iPhone 6 and 6 Plus. The 2014 flagship iPhone benefited from a larger display size and new form factor, and the iPhone 7 has the same three-year-old form factor.
The research firm pointed out that the number of customers switching from Android jumped from 12% for the iPhone 6 and 6 Plus to 17% for the latest iPhones. However, Android switchers are not the primary contributor to the success of recent iPhones. The research firm said the most successful launches were driven by loyal iPhone owners who upgrade to a new model. In 2014, only 12% of iPhone 6 buyers came from Android. But when Apple launched a less compelling iPhone 6S in 2015, most loyal users sat out the upgrade cycle, which led to Android switchers accounting for up to 26% buyers.
Windows, Blackberry switchers account for 5% iPhone 7 sales
During its September quarter earnings call, Apple highlighted that it was attracting more Android to iPhone switchers than ever before. According to CIRP, users coming from Windows and Blackberry accounted for just 5% of the iPhone 7 and 7 Plus sales. KGI Securities analyst Ming-Chi Kuo recently said that the iPhone 7 could get an additional 5-7 million customers due to the discontinuation of Samsung’s Galaxy Note 7.
Earlier this week, Kuo told investors that the iPhone 7 demand had peaked, and Apple would witness a decline in iPhone sales in November and December. The analyst’s prediction is based on reduced shipments seen in the supply chain, and improved availability of the new iPhones worldwide. Apple’s suppliers were making adjustments to decrease iPhone 7 shipments by 5% to 15%.
iPhone 7 demand waning
Ming-Chi Kuo attributed the declining demand to a lack of spec surprises in the 4.7-inch model and shorter delivery times for the 5.5-inch version at launch. Kuo believes that the iPhone 7 Plus was out of stock during the first few weeks due to limited supply rather than robust consumer demand. KGI Securities told investors that fierce competition in China will further affect the iPhone 7 shipments.
Apple is rumored to radically overhaul the smartphone design with iPhone 8 next year. The 2017 iPhone is said to feature a bezel-less OLED display. The home button and fingerprint sensor would be embedded in the display itself. Apple would reportedly launch three versions of iPhone 8, but only one of them is expected to sport an OLED display.
