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lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
/
iPhone sales are plunging. Here’s why
By Samantha Murphy Kelly, CNN
Updated:
6:50 AM EDT, Tue April 16, 2024
Source: CNN
Apple’s smartphone sales tumbled a stunning 10% last quarter,
according to market research firm IDC. The main cause: iPhone sales in
China fell sharply.
The company has lost momentum in China as nationalism, a rough economy
and increased competition have hurt Apple over the past several months.
“It’s a steep drop for Apple, but if you think of where we have
been in the past four years, Apple has probably been the most resilient
brand, overcoming supply chain issues and macro challenges, more than
other brands,” said Nabila Popal, research director at IDC, told CNN.
Samsung had been the top smartphone manufacturer for the past 12 years.
Apple took the crown last year – but only for one quarter. Samsung
took the top spot back in the first quarter of 2024, IDC reported.
“It’s also very significant that Samsung is back at the top,”
Popal said. “This year, we are expecting Android to grow at twice the
pace of iOS.” (Android is the operating system used by Samsung
systems, while iPhones use iOS.)
That’s because Android had a strong decline over the past few years,
so it has more room to grow now. Both Apple and Samsung did not respond
to a request for comment.
Overall, IDC global smartphone shipments increased 7.8% year over year
to about 289 million devices in the first quarter of 2024, indicating
the smartphone market is reemerging after two years of macroeconomic
challenge.
Samsung occupied about 20.8% of market share (or 60.1 million
shipments) during the quarter, followed by Apple with 17.3% (50.1
million shipments). Chinese manufacturer Xiaomi made up 14.1% (40.8
million shipments).
In December, Apple Samsung as the highest performer in the smartphone
category, ending Samsung’s 12-year run at the top, with 20% market
share (compared to Samsung’s 19.4% market share).
Although IDC said in its latest report that it expects Apple and
Samsung to maintain their hold on the market, the resurgence of Huawei
and other companies in China, including Xiaomi and OPPO/OnePlus, will
likely continue. Chinese consumers who once would have considered Apple
are now turning to national brands in China.
China remains an important market for Apple as it is the largest market
behind the US. The company continues to offer discounts in China to
help boost sales.
Last year, Huawei’s popular Mate 60 smartphone made headlines when
the US government about the Pro model, which included a sophisticated
processor. Its debut shocked industry experts who questioned how the
company could make such a chip following sweeping efforts by the United
States to restrict China’s access to foreign chip technology because
of perceived national security concerns.
Popal also noted Apple has not articulated a strong message about
artificial intelligence, at a time when many tech companies are
doubling down on related strategies and features.
“We’re hoping to hear some messaging around this at its June
developer conference,” she said. “We’re hopeful if they do
provide something for the consumers … they should gain more interest
that they’ve seen challenges with.”
Samsung, however, has already gone all in on AI. For its most recent
flagship Galaxy S24 lineup, which was announced in January, the company
emphasized bringing AI advancements to its messaging, photos and games.
“As the overall smartphone market recovers this year, with a strong
focus on AI, Samsung is in good position to grow further this year,”
she added.
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