Apple’s Revenue Up, iPhone Demand Down

Apple’s start to the year has been less than stellar, with its fiscal report for the first quarter of 2024 revealing revenue of $119.58 billion, surpassing expectations yet overshadowed by a gradual decline in iPhone sales. According to the latest market research by IDC, both Apple and its principal competitor, Samsung, experienced a downturn in smartphone shipments during the first quarter of 2024, with Apple’s decrease being particularly pronounced.

In the first quarter of 2024, global smartphone shipments rose by 7.8% year-over-year to 289.4 million units. Despite this growth, the smartphone industry continues to grapple with various macroeconomic challenges, yet the consistent increase over three consecutive quarters signals a robust recovery. An IDC spokesperson noted that Apple had overtaken Samsung at the end of 2023, but Samsung reclaimed its lead as 2024 commenced.

Samsung’s shipments in the first quarter amounted to 60.1 million units, a slight decline of 0.7%, reducing its market share from 22.5% to 20.8%. Apple followed, with shipments dropping by 9.6% to 50.1 million units, diminishing its market share from 20.7% to 17.3%. Xiaomi secured third place with shipments of 40.8 million units, up 33.8%, increasing its market share from 11.4% to 14.1%. Transsion ranked fourth, with shipments soaring by 84.9% to 28.5 million units, boosting its market share from 5.7% to 9.9%. OPPO was fifth, as its shipments fell by 8.5% to 25.2 million units, reducing its market share from 10% to 8.7%.

Recent reports suggest that analysts are pessimistic about the forthcoming iPhone 16 series, deeming it insufficiently innovative compared to the iPhone 15 series and lacking significant AI features to serve as a selling point. This anticipation forecasts a potential 15% decline in iPhone sales for the year. Such a reduction in iPhone sales could understandably cause unease among some investors, given that it represents Apple’s primary revenue source. However, one quarter’s performance is not indicative of a definitive trend, and it remains prudent to monitor iPhone sales over the forthcoming three quarters.