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Estimationwarm-up

How many smartphones are sold in the US each year?

How to approach it

Use a replacement-cycle approach: people who own smartphones divided by how many years they keep one.

How a strong answer opens

“I'll use a replacement cycle: smartphone owners divided by how many years people keep a phone, plus first-time buyers.”

Outline of a strong answer

Try answering out loud for a few minutes before you open this.

  1. State population, about 335 million
  2. Share who own a smartphone
  3. Average years before replacing a phone
  4. Owners divided by replacement years
  5. Add first-time buyers and second phones
  6. Sanity-check against carrier stores: stores x phones sold per store per day

Where this question usually goes wrong

Assuming everyone buys a new phone every year, which ignores the multi-year replacement cycle and inflates the answer.

Learn the method

The approach in five steps in Module 3, Estimation.

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