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Apple’s iPhone 7 Performance Is a Mixed Bag

By
Don Reisinger
Don Reisinger
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By
Don Reisinger
Don Reisinger
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April 27, 2017, 10:35 AM ET

Apple’s iPhone 7’s sales performance is strikingly similar to its predecessor’s—and that’s not necessarily a good thing, according to a new study.

The iPhone 7 and iPhone 7 Plus combined to account for 68% of total iPhone sales in the U.S. last quarter, new data from Consumer Intelligence Research Partners (CIRP) shows (PDF).

However, that figure slid slightly from the year-ago quarter, when the iPhone 6s and iPhone 6s Plus—then the highest-end Apple handsets—accounted for more than 70% of sales. What’s more, older iPhone models, including the iPhone 6s, sold better in the first quarter than Apple’s legacy handsets have performed in years prior.

“Despite upgraded features like each new flagship iPhone release, the legacy models accounted for almost a third of iPhones sold in the quarter, the highest percentage since Apple (AAPL) started releasing two new phones each fall in 2014,” CIRP partner and co-founder Josh Lowitz said in a statement.

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Apple released its iPhone 7 and iPhone 7 Plus models last fall. The handsets come with minor design upgrades compared to the previous year’s iPhone 6s and iPhone 6s Plus, but have a more powerful processor. Apple also made the controversial decision in the iPhone 7 line to eliminate the handset’s headphone jack. However, few users have complained of the omission, and Apple has generally said that iPhone 7 sales are strong. The company hasn’t, however, revealed exact sales figures.

CIRP’s data suggests there might be more for Apple to worry about than how its iPhone 7 compares to the iPhone 6s. Notably, the company found that just 10% of Americans who purchased an iPhone 7 or iPhone 7 Plus last quarter came from an Android-based device. In the first quarter of 2016, 26% of iPhone 6s and iPhone 6s Plus buyers came from Android, the research firm said.

However, CIRP said that Apple has an exceedingly loyal user base that doesn’t often move to Android.

Although the iPhone 7’s performance was a bit of a mixed bag in the first quarter, CIRP noted that the larger iPhone 7 Plus model is increasingly growing its share of Apple handset sales. That has pushed Apple’s average iPhone selling price up and could be good news for the company’s bottom line.

The CIRP study was conducted between April 1 and April 12. It includes responses from 500 U.S. Apple customers.

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By Don Reisinger
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