Increase in Android Switch Rate to iPhone Bodes Well for Apple
Apple Has Plenty of Growth Drivers up Its Sleeve to Fuel 2016
Android switch rate increased to 26% for iPhone 6S and Plus
In the prior part of the series, we discussed some of the factors that will drive Apple’s (AAPL) near-term and long-term growth. One of the most important factors is the rate at which Android (GOOGL) users are switching to the iPhone. According to a report from Consumer Intelligence Research Partners via RCRWireless, Apple is taking away share from Android at a fast rate.
As the chart below shows, 26% of the users who bought iPhone 6S and 6S Plus in the first month of its launch switched from Android. This number was 12% when Apple released iPhone 6 and 6 Plus last year. And 23% of the users who bought iPhone 5S or iPhone 5C in 2013 switched from Android. A small number of users also switched from other smartphone operating systems such as Microsoft (MSFT) and BlackBerry (BBRY) to Apple.
Android dominates the worldwide smartphone OS market
A higher Android switch rate bodes well for Apple, as Android currently dominates the worldwide smartphone operating system market. According to a report from Gartner, Android’s share in smartphone operating systems was 84.7% as of 3Q15. Apple was a distant second at 13.1% while Windows and BlackBerry each had shares in low single digits.
iPhone 6S and iPhone 6S Plus have some attractive features that could urge more people to switch from Android to Apple. Both iPhone 6S and 6S Plus have some incremental features over iPhone 6 such as 3D Touch, a 12-megapixel camera, and Live Photos. For diversified exposure to Apple, you can consider the PowerShares QQQ Trust, Series 1 ETF (QQQ), which invests 12.6% of its holdings in Apple.
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