Last week comScore released a comprehensive white paper that dealt with a variety of topics including the growth in mobile, digital media, social and video platforms, e-commerce. all of which had important ramifications for investors in techland's best and biggest companies.
The white paper received attention here and there within the media but what jumped out at me was the study in the mobile segment. Here are a few points that could help in your investments decisions going forward:
Smartphone usage growth in the U.S has doubled in the years between December 2013 through December 2016. In that same time frame, an astounding 879 billion minutes were spent (in 2016) accessing various digital media.
Mobile media usage has now surpassed the 1 trillion monthly minute mark in March 2016 and the average U.S. mobile phone user spends 2 hours and 51n minutes per day on his/her smartphone.
U.S. smartphone penetration crossed the 80% threshold last year (81% of the U.S. population uses a smartphone as of December 2016). Five years ago, December 2011, the penetration level was just 42% per comScore. As per the research firm, the balance 19% are said to be technology laggards who have a very little chance of switching to smartphones. Basically, if they have done it yet, chances are they like never will. Interestingly, smartphone penetration among the 18-24 year old and the 25-34 year old segments is already at 94% while penetration rates for the 35-54 year olds is at 86% lagged by the 55+ age segment with just 61% penetration rate. comScore expects both the lagging segments to eventually reach 80 or 90% penetration levels within time.
In December 2011, Android (Google/Alphabet) market share in the U.S. was 47% while iOS (Apple) had a market share of 30%. Fast forward to December 2016, Android market share is 54% while iOS is at 43%. In five years, Google was able to increase Android share in the U.S by 7% points while Apple managed to add a whopping 13% points to its share of the overall market.
So, despite the relentless noise one hears about Samsung and others taking share from Apple. reality is otherwise if one relies on the white paper released by comScore.
Talking about smartphone OEM (manufacturers), Apple is numero uno with a 43% share of the U.S market as of December 2016, followed by Samsung at 29% and the remaining 28% by others which includes Motorola, Nokia, etc.
Since 2014, Apple lost almost 42 million iPhone 3, 4, and 5 model users while gaining 53 million users of the iPhone 6, 6 Plus, SE, 7 and 7 Plus users. As of December 2016, comScore estimates that, within the U.S, there are still 4.1 million users of iPhone 3G/4/4s, 17.8 million users that still use iPhone 5/5S/5c and 33.4 million users that are using the iPhone 6/6S.
Talk about an upgrade "super-cycle" when the new iPhone 8/X is unveiled this fall, no?
Hopefully, another set of data-points to help you decide on whether Apple is worthy of an investment or not. Yes, even at current levels.
Apple shares closed last Friday at $156.10 per share.
(Long aapl, amzn, long and short options in both)