Who’s buying all those iPhones?As you know by now - and as a flood of articles are reminding you - Apple sold a lot of iPhones last quarter.

Who’s buying all those iPhones? By and large, not previous iPhone owners. On Tuesday’s Q1 earnings call, Tim Cook stated that Apple saw more new customers to iPhone than ever before. In fact, The Wall Street Journal (paywall) learned from Tim that “fewer than 15% of owners of older iPhones have upgraded to the iPhone 6 and 6 Plus.”

As it turns out (surprise) a bunch of those new iPhone owners are Android switchers. Tim said that this iPhone launch is experiencing the highest "Android switcher rate" ever (technically Tim said it's higher than the pervious three launches as Apple doesn’t have data for prior years). Drilling down, it appears that most of those Android switchers are coming from emerging international markets.

This is good news on several fronts:

  • There’s still a ton of potential for upgrades from existing iPhone owners.
  • There’s still a ton of potential for more Android switchers.
  • iPhone is selling well in markets that many thought would not buy premium smartphones. In fact, iPhone average selling price (ASP) is up.
  • With Apple’s high customer satisfaction ratings, customer loyalty, and a sticky ecosystem, chances are good Apple is gaining long-term - if not life-long - customers.

But what about the Mac? The Mac set a new record for quarterly revenue and tied the record for most units sold. Meanwhile, as Tim mentioned on the earnings call, “the rest of the PC market continued to decline.” In fact, the Mac has now gained market share in 34 of last 35 quarters.

So who’s buying all those Macs? Surely there must be a switcher story here too.