Apple's baby iPhone is hitting the sweet spot with consumers

Many in the tech community questioned Apple's logic in unveiling a new iPhone with a 4-inch screen when the rest of the industry is making smartphones that are bigger than tablets, but the iPhone SE is proving a hit, particularly in Europe.

According to Kantar Worldpanel, whose research is based on responses from a worldwide panel of consumers, the proportion of people plumping for a new iOS handset rather than an Android in the US and in Europe's five main countries, has jumped noticeably over the past three months.

Just under one-third (31.8%) of US smartphone sales were of the iOS variety while 18.2% of consumers in the UK, France, Germany, Spain and Italy also went for an iPhone.

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"In Great Britain, the iPhone SE was the top selling device in the quarter at 9.2%, followed by the iPhone 6s at 9.1%," said Dominic Sunnebo, Business Unit Director for Kantar Worldpanel ComTech Europe.

But as well as being a standout hit in the UK, Apple's smallest current handset is proving a global hit, behind only the iPhone 6s/6s Plus and the Samsung Galaxy S7/S7 Edge in terms of sales.

"The iPhone SE became the third best-selling phone at 5.1%, contributing to the overall growth of iOS during the period," said Lauren Guenveur, Consumer Insight Director for Kantar Worldpanel ComTech.

However, while Apple has taken another small bite out of Android's market share in the US and Europe, its popularity is waning in China and Japan.

"In contrast to the growth in the US and EU5, iOS continued to post year-over-year declines in Urban China," said Tamsin Timpson, Strategic Insight Director at Kantar Worldpanel ComTech Asia. "While the iPhone 6s and 6s Plus remain the top selling smartphones in the region, pressure from Huawei's Mate 8, P9, Xiaomi's RedMi Note 3 and Mi 5, and Oppo's R7 has led to increased competition in the market."

However, Kantar notes that sales of the iPhone SE were restricted in the region over the last quarter. "[It] was not able to make the expected impact, accounting for 2.5% of smartphone sales in the second quarter," said Timpson.