4 Charts That Show Apple Inc. Still Has Domestic iPhone Opportunities

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Apple still has plenty of opportunities stateside for the iPhone. There are a lot of potential first-time smartphone buyers to target while it can count on recurring revenue from consistent upgrades.

Apple still has plenty of opportunities stateside for the iPhone. There are a lot of potential first-time smartphone buyers to target while it can count on recurring revenue from consistent upgrades.

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  • 1. Apple’s Domestic iPhone Opportunities
  • 2. iPhones in the U.S. Investors are focusing heavily on Apple’s ability to sell iPhones in emerging markets. That doesn’t mean opportunities in the U.S. are gone.
  • 3. iPhones in the U.S. Smartphone penetration of all mobile phones is rising. • Jan 2013: 55% • May 2014: 70% Source: comScore.
  • 4. iPhones in the U.S. Smartphone subscribers within the U.S. continues to rise. • Jan 2013: 130 million • May 2014: 169 million Source: comScore.
  • 5. iPhones in the U.S. • Tim Cook believes that all mobile phones will become smartphones in the coming years. • Within the U.S., that implies that 30% of mobile phone users have yet to buy their first smartphone. • That’s over 72 million potential first-time smartphone buyers still in the U.S., before factoring in future growth in the broader mobile phone market.
  • 6. iPhones in the U.S. Apple’s share of U.S. smartphone subscribers continues to rise, and iOS has the highest customer loyalty. Source: comScore.
  • 7. iPhones in the U.S. Investors can then derive an estimate of Apple’s domestic installed base. Source: comScore and author’s calculations.
  • 8. iPhones in the U.S. • Apple’s U.S. installed base increased by 13.4 million from Q1 2013 to Q1 2014. • Total iPhone unit sales over that time were 159.8 million. Approximately 30% of units are typically sold in the U.S., or 47.9 million. • That means 34.5 million units were replacements or upgrades – a recurring revenue source.
  • 9. iPhones in the U.S. • Apple can still target plenty of first-time smartphone buyers in the U.S. • Meanwhile, it has consistent recurring revenue from upgrades within its large and growing installed base.
  • 10. Apple’s next game-changing product could be just months away. The Mac maker has been secretly developing a new device for entry into an entirely new product category. There’s one hidden component vendor that could benefit from this revolutionary device, which is detailed in this report.