Technology|As Smartphone Industry Sputters, the iPhone Expands Its Dominance
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Credit...Guillem Casasus
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By Tripp Mickle
Tripp Mickle has reported on Apple for seven years and will cover his fifth iPhone unveiling on Tuesday.
There’s a general rule about consumer electronics: The older a device becomes, the more competitors appear and prices fall. This was true for televisions, personal computers and portable music players.
It was supposed to happen with smartphones. But the iPhone has defied gravity.
On Tuesday, Apple will unveil the 17th iteration of its flagship product. Remarkably, at an age in which most consumer devices have lost some of their appeal to users, Apple has increased its share of smartphone sales over less expensive rivals.
Over the past five years, the iPhone has increased its percentage of total smartphones sold around the world while expanding its share of sales in four of the world’s largest regions: China, Japan, Europe and India.
In the United States, the iPhone’s largest market, the device now accounts for more than 50 percent of smartphones sold, up from 41 percent in 2018, according to Counterpoint Research, a technology firm. The gains have helped it claim about a fifth of the world’s smartphone sales, up from a low of 13 percent in 2019.
Apple has expanded its smartphone empire as the broader industry has faltered. Over the past two years, sales of Android smartphones have plummeted, but the iPhone has suffered only modest declines because it’s been winning new customers. It has done so despite being the industry’s priciest device.
Apple has overcome price sensitivity by creating a business that is reminiscent of U.S. car sales. Like a car, iPhones last for years and can be resold to offset the purchase of a new one. Wireless providers, much like auto dealers, offer discounts and monthly payment plans that make it more affordable to buy the latest model. And customers, like brand-loyal car buyers, are more likely to buy another iPhone than switch to Google’s Android operating system.
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