Study: Apple’s iPhone 5C Is Android User Bait

Source: Apple.com

Apple’s (NASDAQ:AAPL) lower-cost iPhone 5C has lured a significant numbers of users away from other Android-based smartphone brands. According to a new report from market analyst company Kantar Worldpanel, approximately 50 percent of iPhone 5C buyers have migrated from one of Apple’s smartphone rivals.

“The cheaper 5C appeals to a broader audience than Apple usually attracts,” stated Kantar Worldpanel strategic insight director Dominic Sunnebo. “Almost half of iPhone 5C owners switched from competitor brands, particularly Samsung (SSNLF.PK) and LG,” he added.

Sunnebo also noted that,”Some 42 percent of iPhone 5C owners earn less than $49,000 compared with just 21 percent for iPhone 5S. iPhone 5C customers also tend to be slightly older at an average of 38 years compared to 34 years for the 5S.”Android-based smartphones have historically been more popular among users with lower incomes due to the devices’ typically cheaper price point.

According to a survey conducted by the Pew Internet & American Life Project earlier this year, 28 percent of households in the U.S. with incomes below $30,000 owned Android phones. On the other hand, only 13 percent of people in this demographic owned an iPhone. However, this demographic smartphone trend may soon be changing thanks to the introduction of Apple’s iPhone 5C.

Besides noting the wider appeal of Apple’s lower-cost iPhone model, Kantar Worldpanel also found that Apple’s iPhone 5S and iPhone 5C launches “have given iOS a significant bounce compared to the previous month.” However, the effect was less pronounced than the “bounce” that occurred after last year’s iPhone 5 release.

“This is not wholly unexpected as shoppers tend to react more positively to ‘full’ releases than incremental improvements such as the 5S and 5C,” noted Sunnebo. On the other hand, the market research company found that Apple’s new iPhone models had “spectacular results” in some markets. One market where Apple’s new iPhones have had a significant impact is Japan. According to Kantar Worldpanel, Apple’s share of the Japanese smartphone market hit 76.1 percent in October. In contrast, Apple’s market share in the U.S. reached 52.8 percent in October.

Follow Nathanael on Twitter (@ArnoldEtan_WSCS)

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