Apple Inc. (AAPL) Is Aggressively Pursuing Android’s Market Share And Is Winning

Within its own iPhone install base, Apple Inc. (NASDAQ:AAPL) still has a lot of ground to cover. Just 27% of the iPhone install base has upgraded to iPhone 6 and iPhone 6 Plus models. However, Apple has plans to raid Google Inc (NASDAQ:GOOG)’s Android install base as well. According to Apple’s CEO, Tim Cook, the target is to steal more customers from non-iOS platforms, and so far the progress is impressive.

Apple Inc. (NASDAQ:AAPL) revealed that 73% of the iPhone install base before the release of the iPhone 6 series has not upgraded to the iPhone 6 series. That indicates that the company still has a huge market potential within its own iOS population.

47.5 million iPhones in third quarter

In the latest quarter, Apple’s 3rd quarter 2015, the company sold 47.5 million units of the iPhone, falling short of the consensus estimate but still coming through as a record sale. Most of the iPhones sales in the quarter (at 73% of total iPhones sold) came from customers who did not own an iPhone previously. In other words, Apple is succeeding in winning customers from rival platforms, and Google’s Android is particularly taking most of the heat.

Samsung emerging as major loser

It is emerging that the number of customers abandoning Android for iPhone is accelerating, and was the highest in the last quarter. The particular brand in the Android space that is taking a serious beating from Apple’s new strategy is Samsung Electronics. By targeting Samsung customers, Apple is winning over customers at mostly comparable price points.

For the rest of the Android community, especially where customers are hooked in because of low-cost devices, Apple Inc. (NASDAQ:AAPL) has a weapon. The company is telling these customers that paying a higher price for the iPhone is even better than sticking with a low-cost device that doesn’t offer everything you need.

In addition to great hardware design, Apple Inc. (NASDAQ:AAPL) also boasts a rich pool of smartphone apps, which is another competitive advantage. Apple generates the most revenue from app sales despite Google’s Google Play having far more apps than the App Store.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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