The iPhone 6 Plus is starting to flex its muscles and prove that bigger is better as it gains market share in the US and China.
Applovin has released its latest Data Desk figures, concentrating on the impact of the iPhone 6 Plus market share in the two countries. They point out that there are a couple of interesting trends that happened: 1) iPhone sales in the December quarter in China outstripped those in the US; 2) The noticeable increase in the percentage of iPhone Plus sales when compared to iPhone sales in both countries.
Here is how they explain it: This much movement in two of the largest smartphone markets is significant, especially if you consider that these new ratios aren’t just for new sales of devices. Because the original devices sold in the first month and a half of the availability at a 80/20 or 65/35 pace are still active–the new devices added have to dilute the original ratios. For example, the ratios of new iPhone 6 models sold now in China could be approaching 55/45 (6/6 Plus), but the overall ratio is less influenced because of the original iPhones (sold at a 65/35) ratio are still in use. Put another way, imagine a bathtub half-filled with lukewarm water. If you add a liter of scalding hot water to the tub, you’ll only raise the overall temperature by a few degrees. In this analogy, the lukewarm water is the current temperature of 6/6 Plus usage. The scalding hot water would be the ratio of recently activated devices.
Hot water aside, the blog post goes on to offer further analysis and you can check the full post on the Applovin website.
They sum up why they think the upward trend is a big deal, especially to Apple’s bottom line: We (Applovin) believe this for three reasons: the 6 Plus’s usage is trending upward (implying an uptick in sales) in China; China has emerged as Apple’s biggest market for mobile phones; the iPhone 6 Plus has a higher margin than the iPhone 6, and will likely influence the ASP of the iPhone.