How many smartphones are sold in the United States each year?

Estimate about 110 million new phones a year. About 280 million phones are in use, counting adults, some children and work phones, and people replace them every 2.5 years. At $700 each that is $49 a household per month, below a phone bill, which fits.

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Example answer

50/100

Pretty much everyone has a smartphone now, so it's a huge number. I'd guess around 150 million a year.

The US has about 330 million people. Kids and some older people don't have one. Some people also carry a second phone from their employer. So I'll say there are 280 million phones in use.

People keep a phone about two and a half years. So 280 million divided by 2.5 is 112 million phones a year. So my answer is about 110 million.

What holds it back

The 150 million guess is never used again, and the 280 million phones in use has no build behind it. It also never says whether secondhand phones count as sold.

The numbers, step by step

New smartphones only, from 330 million people, 90% ownership from age 10 up, 4 million younger children, 16 million work phones and a cycle of two and a half years.

Children under 10 with a phone4 million per age × 10 × 10%
4 million
Owners aged 10 and up(330 million − 40 million) × 90%
261 million, rounded to 260 million
Second phones from work160 million workers × 10%
16 million
Phones in use260 million + 4 million + 16 million
280 million
Sold each year280 million ÷ 2.5 years
112 million, called 110 million
With a three-year cycle280 million ÷ 3 years
about 93 million
With a two-year cycle280 million ÷ 2 years
140 million
Dollars a year110 million × $700
$77 billion
Dollars per household a month$77 billion ÷ 130 million ÷ 12
around $49, which is about $590 a year

What the interviewer listens for

  • Do you separate phones in use from phones sold in a year?
  • Do you say what counts as sold: new only, or secondhand too?
  • Can you defend the replacement cycle with a reason?
  • Do you test the answer against something outside your chain, such as a household's monthly phone bill, and say how big a miss that test would catch?

Common mistakes

  • Answering with the number of phones in use.The question is about yearly sales, so the count has to be divided by how long a phone is kept.
  • Using all 330 million people as owners.Most young children have no phone, and leaving them all in overstates the base by tens of millions.
  • Picking a one-year replacement cycle because new models launch every year.A launch every year doesn't mean each owner buys every year.
  • Forgetting that a replacement phone can be a hand-me-down or a refurbished one, which is a sale of zero new phones.

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