Apple's iPhone Remains Undefeated at Home

Although it's seen some resurgence in its sagging share price over the past several months, tech giant Apple  (NASDAQ: AAPL  ) still has its fair share of obstacles to overcome before it once again approaches the $700 range it saw more than a year ago.

Perhaps the most important of those issues is for Apple to continue to see success in the emerging markets that are disproportionately driving smartphone adoption these days. Apple has been steadily losing share in places where sub-$200 handsets powered by Google's Android smartphones are the norm, as should be expected. The real key for Apple is to still find ways to grow its overall unit shipments in emerging markets, which so far it has. 

But domestically, Apple has always been a fan favorite. And recent data demonstrated once again just how much Apple truly dominates the U.S. smartphone market.

How to make it in America
Recently, market research firm comScore released its U.S. smartphone sales metrics for the three months ending in October. And as has been for some time now, Apple maintained its place at the top spot in this key market.

Source: comScore.

According to comScore, Apple's share of the U.S. smartphone market increased 0.2% from August through October. This probably shouldn't come as a huge surprise, as Apple launched its iPhone 5s and 5c in the U.S. during this period, which included a record-setting 9 million iPhone sales in its first weekend on the market in September. It is worth noting that the 9 million unit sales included 10 other international markets, but again the point is that Apple's iPhone has continued its stretch of dominance in its home market.

Apple isn't alone
However, Apple's dominance of the U.S. market is without its threats. South Korean tech giant Samsung (NASDAQOTH: SSNLF  ) , the leading producer of Google's Android devices, also looms large. It notched the single largest gain among the top five handset makers in the United States. It's worth noting as well that Samsung's gains here also probably came in at least some portion from other Android-based OEMs such as HTC and LG, both of which saw their market share contract during the period comScore measured.

Extending the discussion to operating systems more broadly, the comScore data paints a somewhat different picture for Apple.

Source: comScore.

Here, Apple meaningfully lags Google's Android, which increased its percentage of the U.S. smartphone market more than Apple. However, as was also the case with specific handset OEMs, Google's success here could be as much stealing share from struggling names such as BlackBerry as anything else.

Only a small piece of the puzzle
Success in the U.S. is of course hugely important for Apple. Despite CEO Tim Cook's prescient emphasis on international growth, Apple has become a slightly more U.S.-centric company over the past three years. 

Source: Apple. 

Over those three years, Apple's sales in the United States as a percentage of total sales has actually increased slightly to 39%. Especially considering the strong momentum Apple appears to have going into the holiday season, Apple could even potentially see this number increase further.

Although the U.S. is thought of as a mature smartphone market, comScore's figures estimated that smartphone penetration in the United States reached 62.5% at the end of October.

The U.S. is by no means Apple's largest growth opportunity. However its ongoing success in its home market, as we saw most recently from comScore, is certainly something Apple investors should be thankful for this holiday season.

A tech stock for all seasons
This incredible tech stock is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch!


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2756879, ~/Articles/ArticleHandler.aspx, 10/24/2014 7:36:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 16,677.90 216.58 1.32%
S&P 500 1,950.82 23.71 1.23%
NASD 4,452.79 69.95 1.60%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/23/2014 3:59 PM
AAPL $104.83 Up +1.84 +1.79%
Apple CAPS Rating: ****
SSNLF $1056.03 Down -73.97 -6.55%
Samsung CAPS Rating: ***

Advertisement