Tuesday, March 10, 2015

Over 40 Percent of American Smartphone Users Have iPhones and Strong Branding has Helped Maintain Their Lead over AndroidS

Apple is America's largest provider of smartphones, according to a report by digital analytics firm comScore. Of the 184 million Americans who own smartphones, 41.3 percent use an iPhone. The study measured aveage ownership from Nov. 2014 to Jan. 2015.



Samsung ranked second in the report, with just under three in ten Americans using smartphones from the South Korean company.

Brand loyalty is created through building trust with consumers, according to Dr. Henry C. Boyd III, Clinical Associate Professor in the marketing department of the Robert H. Smith School of business. This trust is created by delivering on promises the company has made about their products.

Apple creates brand loyalty by making people think they could not live without the iPhone, according to Dr. Boyd.


Google's Android operating system, open source and available to any equipment manufacturers, tops the market at 53.2 percent. Apple's operating system, iOS, is only available on their products, and matches the 41.3 percent marketshare. Apple's strong brand has clearly resonated with children, who greatly prefer the iPhone to any other choice.

Over 50 Percent of Smartphone Seeking Kids Want iPhones

Most children who want smartphones ask for iPhones, and have no secondary brand preference, according to an American Marketing Association survey from Nov. 2014. Only 12 percent of children surveyed preferred a Samsung Galaxy.

The study notes that children say iPhones are for 'people like me,' and that their friends have them as well. While different companies offer many types of phone, iPhone is ubiquitous with the Apple brand, and their current dominance may be creating an advantage. Apple is not necessarily doing anything special or unique to appeal to these young people, but is simply maintaining their identity as the premiere smartphone brand.

Apple does not appear to be losing any trust with consumers, consdering their marketshare in the preceding three month was 41.9%, just slightly higher than the current value.

Dr. Boyd details why consumers may want to change brands.


The Most Popular Apps are Available on iOS and Android 

While most applications are available on both of these platforms, it is important for developers to consider the differences between users to better tap into the U.S. and global marketplaces. The 15 most popular apps include only three that are platform specific: Google Play, iTunes Radio and Apple Maps.

A study from Stanford University published in 2014 found no evidence that developers prefer one platform over another. It noted three main reasons for this discovery:
Junior journalism major Daniel Weintraub texts on
his phone during class. 
  1. A small minority of all available applications make up the vast majority of consumer demand
  2. Apps highly demanded on one platform are highly demanded on the other
  3. Highly demanded apps have a tendency to multihome, writing for both iOS and Android. 

Nevertheless, distinctions among users could have profound effects on how companies market their products for mobile devices.  

iPhone Users Have More Money and are Better Educated 

A survey conducted by the Pew Research Center in 2013 shows that iPhone users have more money compared with the average. While 25 percent of cell phone owners surveyed said they own an iPhone, 28 percent said they own an Android. Almost half of the people who reported a household income of $150,000 or greater were iPhone users.  

On the other hand, only 13 percent of cell phone owners whose household income totaled less than $30,000 per year owned an iPhone, while 28 percent of this demographic owned an Android. 

Sophomore government and politics major dislikes the restrictiveness of Apple's operating system.

Apple users were also educated for longer. While 38 percent of those with at least a college degree were iPhone users, 29 percent owned Androids. In the same vein, 25 percent of those with less than a high school diploma owned Androids, while 11 percent owned iPhones. 

What is most striking may be the discrepancy between the two for African Americans. Only 16 percent owned iPhones, compared to 42 percent who owned Androids. 

iPhone Users Spend More on Mobile Commerce 

According to a study by Monestate, iPhone users spent $177.5 million on e-commerce in the second quarter of Fiscal Year 2014. In the same period, Android users spent $91.3 million. While mobile e-commerce traffic made up 16 percent of the total traffic, it only created 4 percent of the revenue.

A separate study, comScore's 2013 Mobile Future in Focus Report, revealed 23 percent of iPhone users shopped on their phones, compared with 17 percent of Android users. This data has major implications for anyone trying to market a product. 

Junior supply chain management major Pat Powers
on his iPhone. 
First of all, as the study from Stanford states, it makes sense for app developers and advertisers to use both platforms. Large numbers of people are using their phones to shop, and the figures are only growing, so advertising on both iOS and Android makes sense. Applications that focus on selling products can be lucrative on both platforms, despite the lead enjoyed by Apple.

More importantly, advertisers and marketers alike should be focusing on optimizing their mobile websites and advertisements to drive revenue. While 4 percent seems like a small slice of the e-commerce pie, it still represents millions of dollars in sales.

The higher traffic number may be showing that people use their mobile devices to scan for potential purchases when they are on the go, but this must not be discounted. Creating easy to use, well designed mobile sites will allow those who prefer to shop on tablets and laptops to browse at any and all times. Doing anything less would be a competitive disadvantage, even if mobile sales are not a key part of a company's revenue. 


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