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TechGlobal 500

Apple’s iPhone Share Is Static But iPad Is Tumbling

By
Don Reisinger
Don Reisinger
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By
Don Reisinger
Don Reisinger
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October 24, 2016, 11:09 AM ET

Apple’s iPhone is holding steady, but in the United States, the company’s iPad is falling out of favor, according to new data from research firm eMarketer.

In the U.S., 43.5% of smartphone owners will be using the iPhone by the end of 2016, nearly matching last year’s iPhone market share of 43.3%, according to the report. In 2014, Apple’s iPhone market share stood at 42.3%.

By the end of 2016, 52% of smartphone owners will be running an Android-based device, up from 51.7% in 2015.

Although Apple’s (AAPL) market share isn’t moving in smartphones, the number of Americans actually using its smartphone is. In fact, nearly eight million more iPhones will be in use in the U.S. by the end of 2016 compared to 2015.

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The research firm didn’t say exactly why the iPhone’s market share is static despite more customers owning the handset. However, Apple’s iPhone 7, which it launched last month, has proven popular among early adopters and is believed to be more successful to this point than its predecessor, the iPhone 6s.

On the tablet front, though, Apple isn’t doing so well. While its iPad is still the most popular tablet in the U.S., its market share fell below 50% for the first time in 2015. By the end of this year, its market share will fall to 47.8% and decline to 44% by 2020, according to eMarketer.

Even in the home entertainment market where Apple offers its Apple TV set-top box, things could be better. At the end of this year, Apple TV’s market share will reach 11.3%, falling behind Google (GOOGL) Chromecast’s 16.8% market share and Roku’s 16.4% share, eMarketer says.

For more about Apple’s iPhone 7, watch:

Still, looking ahead, things are looking up for Apple. The company’s Apple Pay, a mobile-payments service that lets users make payments in-store or online with their iPhones or iPads, is well-positioned in a growing market. While the research firm didn’t share Apple Pay market share figures, it said that the U.S. mobile proximity payments market, which includes payments made with smartphones, will reach $27.7 billion this year, and will more than double to $62.5 billion next year.

Better yet, the number of mobile payments users in the U.S. will soar from 38.4 million this year to 76 million by 2020.

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By Don Reisinger
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