This is the world's most profitable market for smartphones, and the most closed

By way of comparison, IDC puts the smartphone market in China at 329 million units shipped in 2021, up 1.1% year-on-year. The Indian smartphone market shipped a total of 161 million units last year, a total increase of 7%. The US population is around 350 million, a quarter of that of China and India.

According to eMarketer, the percentage of the US population with a smartphone has grown from 31% to 88% over the past decade, and is already saturated. 96% of young adults aged 18-49 already own a smartphone, 83% of middle-aged and older people aged 50-64 own a smartphone, and 61% of older people aged 65+ own a smartphone.

Yet this huge market, with annual revenues of nearly $75 billion and an average phone price of over $500, is virtually 'monopolised' by two manufacturers. For the past ten years, the US smartphone market has been a 'two-man show'. Apple and Samsung control 80% of the market, with the others taking up less and less space.

The duo has over 80% of the market share

Although statistics from various market research companies vary, the dominance of Apple and Samsung is unshakable regardless of the data reported by them. Samsung, in second place, has a 30.4% market share. The two major players already control a whopping 85% of the market. Canalys statistics also show that the combined market share of the two players is over 75%.

This is not even the highest quarter for Apple. The fourth quarter after the launch of the iPhone is the peak season for iPhone sales, with Apple topping Samsung's global market share and dominating the US market. 2020 saw Apple's market share in the US exceed 65% in the fourth quarter after the launch of the iPhone 12.

The North American market (including the US and Canada) is Apple's largest source of revenue. Apple's second quarter results show that revenue in North America totalled $37.47 billion, contributing more than 45 percent of Apple's revenue in the quarter, while revenue in Europe and Greater China was $19.29 billion and $14.6 billion, respectively.

Thanks to the iPhone 13 series, Apple's iPhone business generated revenue of US$40.66 billion in the quarter, contributing 49 percent of revenue. According to market research firm CounterPoint, the iPhone 13 series accounted for more than 80 per cent of total iPhone sales. Given Apple's estimated market share in the US, more than half of Apple's iPhones are shipped in the North American market.

In comparison, IDC's global market data for the second quarter of this year shows that Apple and Samsung combined had a 38% share (22% for Samsung and 16% for Apple), while the three Chinese manufacturers Xiaomi, OPPO and Vivo together had a 32% share (14%, 9% and 9% respectively). The combined share of the three Chinese manufacturers was 38% last year.

The market landscape has not changed in a decade

Apple has only one competitor in the US, Samsung. With Samsung releasing its flagship phone at the beginning of each year and Apple releasing its iPhone at the end of the third quarter, the two manufacturers' sales peaks are staggered, and their market shares are also in decline. The first quarter is usually Samsung's best selling quarter, while the fourth quarter is a hot time for Apple's iPhone.