Apple’s smartphone sales have dropped by 10% last quarter, with a significant decrease in sales in China. This decline in momentum is attributed to factors such as nationalism, a challenging economy, and increased competition in the market. Despite this steep drop, Apple has been resilient over the past four years, overcoming supply chain issues and macro challenges, according to IDC research director Nabila Popal.
After holding the title of the top smartphone manufacturer for 12 years, Samsung regained its position at the top spot, taking over from Apple after just one quarter. The growth of Android, which is used by Samsung systems, is expected to outpace that of iOS this year. IDC reported a 7.8% increase in global smartphone shipments in the first quarter of 2024, indicating a resurgence in the smartphone market after two challenging years.
Samsung captured a 20.8% market share with 60.1 million shipments, followed closely by Apple with a 17.3% market share and 50.1 million shipments. Chinese manufacturer Xiaomi also played a significant role, making up 14.1% of the market with 40.8 million shipments. Despite the dominance of Apple and Samsung in the market, the report suggests that Huawei and other Chinese companies like Xiaomi and OPPO/OnePlus are likely to continue their resurgence, attracting consumers who are turning to national brands in China.
Chinese consumers are increasingly favoring national brands over Apple, posing a challenge for the company to maintain its position in the market. Apple, recognizing the importance of the Chinese market, has been offering discounts to boost sales. Huawei, a prominent Chinese brand, made headlines with its Mate 60 smartphone, featuring a sophisticated processor that caught the attention of industry experts and raised concerns about access to foreign chip technology due to national security issues.
Apple has not effectively communicated a strong message about artificial intelligence, an area where many tech companies are focusing their strategies and features. With the upcoming June developer conference, there is hope for Apple to articulate its AI strategy and appeal to consumers who are increasingly interested in this technology. In contrast, Samsung has already incorporated AI advancements in its latest flagship Galaxy S24 lineup, positioning the company well to capitalize on the growing focus on AI in the smartphone market.
