Apple iPhone Shipments Drop as Smartphone Industry Rebounds
Global Smartphone Market Shows Positive Growth
In the first quarter of this year, Apple Inc.’s iPhone shipments witnessed a decline of nearly 10%, losing ground while the broader smartphone industry rebounded from the impacts of the previous year, as reported by market tracker, IDC.
According to IDC, the global mobile market witnessed a 7.8% rise from a year ago, with 289.4 million handsets being shipped. Samsung Electronics Co. recaptured the top spot while budget-focused brand, Transsion, experienced an 85% surge in shipments. Xiaomi Corp. also made a comeback, closing the gap on second-place Apple.
Apple’s Struggle in the Chinese Smartphone Market
Since the release of Apple’s latest iPhone generation in September, the Cupertino-based company has encountered difficulties in maintaining sales in China, the largest smartphone market in the world. These challenges are subsequently impacting the company’s global results.
According to IDC’s preliminary figures, Apple shipped 5 million fewer iPhones compared to the previous year.
“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.”
Increasing Average Selling Prices and Apple’s Strategy
Researchers at IDC discovered that average selling prices for handsets are on the rise, as consumers are increasingly opting for higher-end models with the intention of holding onto them for longer periods of time. Consequently, Apple is likely to have sold a higher proportion of iPhone 15 Pro devices, leading to higher revenue per unit.
However, Apple has also adopted unusual discounting measures to stimulate sales, with certain retail partners in China providing discounts of up to $180 off the regular price.
Updated with research director comments and details.
