Apple’s iPhone shipments fell by a bigger-than-projected 10 percent in the March quarter reflecting flagging sales in China despite a broader smartphone industry rebound.
The iPhone-maker's steep sales decline comes after its strong performance in the December quarter when it overtook Samsung as the world's No.1 phone maker. It's back to the second spot, with 17.3 percent market share, as Chinese brands such as Huawei gain market share.
Global smartphone shipments increased 7.8 percent to 289.4 million units during January-March, with Samsung, at 20.8 percent market share, clinching the top phone maker spot from Apple.
The Cupertino, California-based company has struggled to sustain sales in the world’s biggest smartphone market since the debut of its latest iPhone generation in September. The resurgence of Huawei Technologies, more domestic competition and a China ban on foreign devices in the workplace have all weighed on sales.
The company shipped 50.1 million iPhones in the first three months, according to data from research firm IDC.
“The smartphone market is emerging from the turbulence of the last two years both stronger and changed,” said Nabila Popal, research director at IDC. “While the top two players both saw negative growth in the first quarter, it seems Samsung is in a stronger position overall than they were in recent quarters.”
Who stands where
Xiaomi, one of China's top smartphone makers, occupied the third position with a market share of 14.1 percent during the first quarter.
South Korea's Samsung, which launched its latest flagship smartphone lineup - Galaxy S24 series - in the beginning of the year, shipped more than 60 million phones during the period.
Global sales of Galaxy S24 smartphones jumped 8 percent, compared to last year's Galaxy S23 series during their first three weeks of availability, data provider Counterpoint previously said.
In the first quarter, Apple shipped 50.1 million iPhones, down from 55.4 million units it shipped same period last year, according to IDC.
Apple's smartphone shipments in China shrank 2.1 percent in the final quarter of 2023 from a year earlier. The Cupertino, California-based company in June will hold its Worldwide Developers Conference (WWDC), where it will highlight updates to the software powering iPhones, iPads, and other Apple devices.
Average selling prices for handsets are rising, as consumers increasingly opt for premium models that they intend to hold on to for longer, IDC’s researchers found. Apple, which consistently maintains the highest ASP in the industry, has led the way in this, with consumers showing a distinct preference for its higher-tier models. Still, the company has this year resorted to unusual discounts to spur sales, with some retail partners in China taking as much as $180 off the regular price.
(With inputs from agencies)