Apple Inc.’s iPhone shipments took a hit in the March quarter, declining by 10% and falling short of analyst expectations. This drop marks the steepest decline since the Covid-19 lockdowns in 2022, with sales in China particularly struggling due to fierce competition from rivals like Huawei and Xiaomi.
Despite this setback for Apple, the overall smartphone market saw a 7.8% increase in shipments from the previous year. Samsung managed to regain the top spot in the March quarter, pushing Apple into second place. Analysts are predicting that Android devices will see faster growth as the market begins to recover in 2024.
In addition to Apple’s shipment decline, their suppliers also faced a downturn in Asia trading on Monday. On the other hand, Xiaomi experienced a significant 33.8% year-over-year increase in handset shipments.
The decline in iPhone shipments can be attributed to increased competition in China, with consumers opting for premium models and holding onto their devices for longer periods. In an effort to stimulate sales, Apple has resorted to offering discounts, with some retail partners in China providing discounts of up to $180 off the regular price.
Despite facing tough competition, Apple still enjoys a loyal fan base. At a recent store opening in Shanghai, Apple fans expressed their loyalty to the brand but also mentioned considering competitors like Huawei. China remains a crucial market for Apple, accounting for approximately a fifth of their total sales, mainly driven by iPhone purchases.
