iPhone 5 is UK's most popular smartphone and Apple is raking in $1b/year from app sales

iPhone 5 and iPhone 4S are more popular than Samsung in the UK. Plus: Apple has 500m registered users, makes $1b/year from App Store

You may have read reports claiming that Samsung is taking over in the smartphone wars, but according to a new report, the iPhone 5 is still Britain's most popular smartphone.

And that's not even all iPhones combined, according to the research from uSwitch, the iPhone 5 is in first place, followed by iPhone 4S in second position.

While the rest of the chart is dominated by Samsung, which has five handsets in the top ten, it's significant that the iPhone 5 is still the best seller.

It's also the third month in a row that this has been the case. As uSwitch puts it: "Despite high rankings from pre-orders, Samsung's Galaxy S4 fails to improve ranking since April launch."

In a press release announcing the figures, uSwitch's Ernest Doku said: "While the Galaxy S4 has been an unmitigated success on a global scale, price drops and special offers barely a month after launch show that the heavily-hyped device has needed a bit more oomph to make waves in the UK market."

The top handsets for May 2013 were:

Apple iPhone 5 (16GB) - iOSApple iPhone 4S (16GB) - iOSSamsung Galaxy S4 (16GB) - AndroidApple iPhone 4 8GB - iOS (up two places)Samsung Galaxy S3 (16GB) - AndroidHTC One Silver - AndroidSony XPERIA Z - AndroidSamsung Galaxy Ace - AndroidSamsung Galaxy Note 2 - AndroidSamsung Galaxy S2 - Android

This data backs up a report that suggested that the Samsung Galaxy S4 was not hurting iPhone sales in the US.

Analyst firm Detwiler Fenton claims that iPhone sales in North America "remain resilient" and predicts that Apple will sell thirty million iPhones during the quarter that ends in June, writes Barrons.

It should be noted that even if Samsung does sell more phones than Apple, Samsung phones are cheaper, so it doesn't necessarily follow that the company will make more profits.

500 million registered users

Another area where Apple is winning is the number of user accounts it has. According to Morgan Stanley data, Apple has an account base of 500 million users registered (along with their credit card details).

The number of registered users grew by 55% in 2012, according to Morgan Stanley's data.

Morgan Stanley's Katy Huberty expects that the number of user accounts will hit 600 million this year.

Facebook is the only other company to have more user accounts, as of 2012, it had 1,056 million user accounts.

By contrast, Amazon had 200 million; mobile games maker Zynga had 180 million; Paypal had 123; and eBay had 112 million registered users.

The good news for Apple is that it generates $329 per user. More than competitors Amazon ($305 per user) and eBay ($125 per user).

Huberty suggests that should Apple introduce an iRadio service, as it is widely expected to do at WWDC, it could generate as much as $1.1 billion in revenue per year by only getting 50% of its already registered users to sign up for the service.

Huberty also hints at the increased revenue possibilities if the iAd service was extended to iRadio, notes Apple Insider in its report.

£1 billion App Store profits per year

Another area where Apple is making money thanks to its extensive user base is the App Store. The iOS App Store makes £1 billion in profits for Apple every year, according to Elephant Analytics estimates.

This figure is based on the suggestion by Apple in its most recent financial results conference call that it had paid developers $9 billion for 45 billion app downloads. The analysts, writing on Seeking Alpha, suggest that this indicates that an average of $0.20 is paid to each developer per download and since developers get 70% of total app revenues, the average revenue per app download for Apple (who gets the other 30%) would be $0.0857. The report goes on to note that not all apps have a cost associated with them, but according to the report, 71% of revenue comes from in-app purchases inside free apps.

On the assumption that Apple makes on average $0.0857 per app, and has sold 50 billion apps, that would suggest it had made $4.285 billon over the years from iOS app sales.

Related

What the iPhone, iPad and Mac market share tell us about Apple

iPhone owners spend 53% more time on their iPhone than Android users

Numbers game: Why analyst says iPhone market share will exceed Android

Samsung Galaxy S4 reviews round up: 'not revolutionary' and 'full of bloatware'

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Karen Haslam

Macworld U.K.
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