Examining iPhone pricing and US market share
Analyst Benedict Evans tries to explain why the iPhone accounts for about half of US smartphone sales, but is outold 2:1 by Android globally. He argues that it all comes down to plan pricing and phone subsidy.
In the US, consumers save US$100-$200 on the cost of the phone, but the plan pricing is the same. As a result, US consumers only save 10 percent by going with a less expensive Android device. Overseas, however, plan pricing is much more flexible. Customers can buy a cheap phone and a less expensive plan to match. As a result, the iPhone can be as much as 160 percent more expensive than its cheaper Android counterpart.
You can read his full analysis in this article on ben-evans.com.
Subscribe to Newsletter
Software Updatesmore updates
- Spotify update adds equalizer, refreshed Artist page and more
- Fantastical 2.1 for iOS adds new snooze, search and notification features
- ExpanDrive 4, more services and faster sync
- Apple adds iTunes Extras to Apple TV
- Spotify updates with new iPhone controls in time for summer BBQs
- iTunes U update will bring course creation and student discussion to iPad app