Do customers buy iPhones online or in stores?

Last week we discussed the power of the mobile carriers’ retail operations in selling iPhones. They control two-thirds of the US market, compared to one quarter of the market for Apple retail. These intermediaries keep Apple from having the primary selling relationship with their all-important iPhone customers.

The break between sales in physical stores and online sales means that an even smaller percentage of iPhone buyers are enjoying the full Apple Store experience, where Apple has the best opportunity for upselling, accessory selling, and ecosystem building.

In the 12 months ending in September 2022, 40% of iPhones were purchased online. That percentage was even higher for Apple’s retail operations, where almost half of iPhone purchases were completed online (Table 1)