iPhone sales plummet. This is why

iPhone sales plummet. This is why

Apple’s smartphone sales fell 10% last quarter, according to market research firm IDC, as 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 few months.

“It’s a significant decline for Apple, but if you think about where we’ve been in the last four years, Apple is probably the most resilient brand, overcoming supply chain issues and macro challenges, more than any other brand,” said Nabila Popal , director of research at IDC, told CNN.

Samsung has been the top smartphone manufacturer for the past 12 years. Apple took the crown last year – but only for one quarter, as Samsung took that spot back.

“It is also very important that Samsung returns to the top,” said Popal. “This year, we expect Android to grow at twice the rate of iOS.” (Android is the operating system used by Samsung systems, while the iPhone uses iOS.)

That’s because Android has had a strong decline over the past few years, so it has more room to grow now. Neither Apple nor Samsung responded to requests for comment.

Overall, IDC said global smartphone shipments rose 7.8% year-on-year to about 289 million devices in the first quarter of 2024, showing the smartphone market is re-emerging after two years of macroeconomic challenges.

Samsung took about 20.8% 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 overtook Samsung as the top 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, is likely to continue. Chinese consumers who once considered Apple are now switching 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 hit the headlines when the US government sought more information about the Pro model, which includes an advanced processor. Its debut surprised industry experts who questioned how the company could make such a chip in the wake of an all-out effort by the United States to restrict China’s access to foreign chip technology due to perceived national security concerns.

Popal also noted that Apple has not expressed a strong message about artificial intelligence, at a time when many technology companies are doubling down on related strategies and features.

“We hope to hear some messages on this at the June developer conference,” he said. “We hope that if they provide something for consumers … they should get more interest that they have seen the challenge.”

Samsung, however, has gone full AI. For its latest Galaxy S24 flagship lineup, announced in January, the company emphasized bringing AI advances to its messaging, photos and games.

“As the overall smartphone market recovered this year, with a strong focus on AI, Samsung is well positioned to grow further this year,” he added.