The US smartphone market has declined 17% YoY in Q1 2023 due to inventory correction and weak consumer demand. On the other hand, the iPhone has increased its market share to 53% in Q1 2023 from 49% in Q1 2022, showing that Android owners are switching to Apple.
This information comes from the latest Counterpoint Research analysis. While the iPhone has the biggest market share, Samsung maintained its second position with an unaltered 27% share. Motorola fell from 10% to 8%, TCL from 3% to 2%, Google held at 2%, and others fell from 9% to 8%.
Senior Analyst Maurice Klaehne noted, “While prepaid brands saw significant YoY shipment declines, there were some silver linings. Samsung’s Galaxy S23 shipments were up double digits YoY, while the Galaxy A14 5G performed exceptionally well in prepaid. The gap between low-end and premium devices seems to be widening, creating a vacuum in the mid-range device category.”
While the Counterpoint Research report points out a declining smartphone market, the publication doesn’t say much about Apple’s leadership. Besides, the company has “managed to increase its market share despite a YoY drop in its shipments.”
Last year’s supply chain constraints could be behind this increase in market share, which made it impossible for iPhone users to buy Apple’s latest flagship phones. With a higher demand after the holidays, the company made a profit in the first quarter of the year with the iPhone 14 Pro and Pro Max models.
Associate Research Director Hanish Bhatia also commented on the Android to iOS switch. He says the migration “driven by young and first-time smartphone users continues to remain a key pain point among Android OEMs,” and Apple’s ecosystem continues to lure newcomers.
The full report is worth reading, as it also gives a few tidbits about the foldable smartphone market, in which Samsung dominates.