Apple Stores See Shrinking Share of iPhone Sales
April 08 2016 - 11:20AM
Dow Jones News
Fewer U.S. iPhone buyers are purchasing directly from Apple
Inc., as more deal with telecom carriers, according to a new
report.
Consumer Intelligence Research Partners said 76% of U.S. iPhone
buyers in the 12 months ended in December purchased from stores and
websites operated by mobile carriers, up from 65% two years
earlier. Only 11% bought phones directly from Apple, down from 16%
two years earlier. The remaining phones are purchased at other
retailers, such as Best Buy Co.
Apple benefits more when customers buy from its stores or
website, rather than from a carrier, said CIRP co-founder Michael
Levin. In the stores, he said, Apple can keep more of the profits
from selling the device, control the customer experience and not
worry that shoppers may choose another brand.
"Apple much prefers to sell iPhones in their own store or the
website than through carriers," said Mr. Levin, who estimates that
about two-thirds of Apple's U.S. retail sales come from its 267
brick-and-mortar stores and one-third from its online store.
An Apple spokeswoman declined to comment.
Operators are offering to upgrade phones more quickly than in
the past, offering one possible explanation for their growing share
of iPhone sales. For example, Sprint Corp. offers a plan for an
iPhone 6S for $1 a month, with the trade-in of a previous
generation iPhone 6. T-Mobile offers a similar plan for $5 a
month.
As mobile carriers aggressively pitch customers on data plans
for tablet computers, their stores are also becoming a more popular
place to buy iPads. Carriers sold 18% of iPads purchased in the
U.S. in the 12 months ended December, compared with 6% two years
earlier. Apple stores still account for 23% of iPad sales, roughly
flat with 2013. The carriers have gained share from Best Buy and
Amazon.com Inc., whose share of iPad sales have decreased.
Apple stores still dominate sales of Mac computers, accounting
for 44% of all U.S. Mac purchases in the 12 months ended December.
Best Buy accounted for the next largest share of U.S. Mac sales at
around 20%.
The CIRP report offers a rare glimpse of Apple's retail
operations, as Apple has curtailed disclosures about the business.
In the fiscal year ended September 2015, Apple stopped breaking out
revenue from its retail operations in its earnings statements. The
majority of Apple's roughly 480 stores are located in the U.S.
In February, shopping-mall operator General Growth Properties
said holiday-season sales at Apple stores were disappointing.
General Growth CEO Sandeep Mathrani said fourth-quarter sales a
square foot in non-department stores increased in nearly every
major retail category except for electronics, "primarily due to
Apple."
Write to Daisuke Wakabayashi at Daisuke.Wakabayashi@wsj.com
(END) Dow Jones Newswires
April 08, 2016 11:05 ET (15:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
SentinelOne (NYSE:S)
Historical Stock Chart
From Aug 2024 to Sep 2024
SentinelOne (NYSE:S)
Historical Stock Chart
From Sep 2023 to Sep 2024