CUPERTINO, Calif., Thursday, May 9, 2024 – Apple Inc. is facing a rough patch in the smartphone market, with iPhone sales dropping 16% year-over-year in the first quarter of 2024, according to market research firm Canalys. 1
This translates to a decline of 9.3 million units shipped globally compared to last year’s period.
The slump comes despite the launch of the iPhone 15, raising concerns about Apple’s ability to maintain momentum, particularly in China, a crucial market. Apple has not yet commented on the sales figures.
Analysts point to several factors behind Apple’s struggles in China.
One is competition from increasingly sophisticated Android devices offered by local manufacturers like Xiaomi and Huawei. Another is the Chinese government’s reported encouragement of citizens to switch to domestic smartphones.
Apple’s recent concessions regarding app store regulations in Europe have not translated to similar changes in China.
Additionally, while Apple removed apps like Telegram and WhatsApp from its Chinese App Store under pressure from authorities, data suggests these removals may not have significantly impacted overall download figures.
Tim Cook, Apple’s CEO, recently visited China, highlighting the company’s efforts to navigate a conflicting regulatory landscape. However, challenges persist, including directives to remove apps deemed to have security concerns.
Apple’s woes extend beyond China.
The global decline in iPhone shipments underscores broader headwinds. Competitors like Samsung have maintained momentum with new product launches and advancements in artificial intelligence technology.
The global smartphone market itself is experiencing some growth, fueled by new offerings and economic stabilization in emerging markets.
Canalys’ recent findings indicate a global surge in smartphone shipments, showing an 8% year-on-year growth in the fourth quarter of 2023, totaling 320 million units. This marks a significant reversal from seven consecutive quarters of decline.
During this period, Apple dominated the market, capturing a 24% share of shipments, propelled by the introduction of new iPhone models. Samsung secured the second position with a 17% share, while Xiaomi experienced substantial growth, claiming third place with over 20% year-on-year expansion in Q4. 2
- Apple iPhone: https://www.canalys.com/newsroom/global-smartphone-market-q1-2024[↩]
- Apple iPhone: https://canalys.com/newsroom/global-smartphone-market-2023[↩]
