Trade-In Deals Propel Apple's iPhone XR into being the best Selling Smartphone in America for Calendar Q1
Earlier this month Patently Apple posted a report titled " For Q1 2019 Apple's iPhone XR was #1 in the U.S. & Britain while the iPhone X was Apple's best Seller in Urban China." The Kantar based report told us that Apple was #1 in the U.S. without providing actual numbers. Today we have more concrete data from Consumer Intelligence Research Partners (CIRP) on Apple's Fiscal Q2 2019 (calendar Q1 2019) that ended March 30, 2019.
iPhone XR Rules
The report notes that "CIRP found that the new iPhone XS, XS Max, and XR models accounted for 59% of US Phone sales in Apple’s second fiscal quarter (Calendar Q1) with iPhone XR accounting for 38% alone." Obviously Apple's push with trade-in deals is paying off.
Josh Lowitz, CIRP Partner and Co-Founder: "Apple's iPhone XR continues to dominate US iPhone sales. It remains the best-selling individual model again this quarter, after launch early in the December 2018 quarter.
In the US, the newest iPhone models sold about as well as the newest models a year ago, at about 60% of total sales. Based on these trends, we estimate an Average Selling Price of around $800, a decrease from the previous quarter."
Apple services penetration in the US market varies considerably. Among US iPhone buyers in the quarter, 48% use paid iCloud storage, while 3% purchase an AppleCare warranty. 21% of iPhone buyers use the Apple Music streaming service, and 13% use the legacy iTunes music service.
Mike Levin, CIRP Partner and Co-Founder: "As Apple begins to emphasize and promote services, the results are highly uneven. Among the services that we track, iCloud paid storage has the highest penetration, which makes sense given how easily it integrates with Apple devices, and that it solves a common storage problem at a modest cost.
On the other hand, Apple Care warranties continue to sell poorly, in light of the intense competition from mobile phone carriers, retailers, and other warranty providers.
Apple also confronts similar competition in music, with Spotify, Amazon, Pandora, and others fighting for Apple Music streaming subscribers."
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