Here is why the Apple iPhone 6 is fundamentally different

When someone says "iPhone 6 compared to older models“, what's the first thing that comes to mind? Bigger screen, Apple Pay, Voice over LTE? All of the above, probably. But for the company itself, the iPhone 6 is fundamentally different than all other devices, and in a good way.

According to the latest investor note from Citi Research analyst Jim Suva, the main difference is that most of the people who bought the iPhone 6 are not old Apple users – they’re new consumers that have switched from Android. Most notably, from Samsung’s Android devices.

In a report by Business Insider it says that Apple holds approximately 15 per cent of the global phone market for iPhone, while Android took the rest. So when a new product hits the streets, the initial sales are high, but die down fast, as the device reaches that 15 per cent of the market.

However, this time around people who have bought the iPhone 6 switched from other devices, mostly Android. What’s also important to know is that basically every iPhone user upgrades to a newer version at some point, and many of those still haven’t bought the iPhone 6.

According to Citi, only 20 per cent of the existing iPhone user base have upgraded to an iPhone 6 and 6 Plus, and about 50 per cent of iPhone 6 / 6 Plus customers are first-time iPhone users who switched from other brands, mostly Android.

That is hugely significant because it suggests that 80 per cent of current iPhone users have yet to step in and actually buy a new iPhone 6.

Apple is probably rejoicing at this information. Samsung is probably keeping its head in both its hands.