iPhone never so bad since Covid: what happens to Apple’s smartphone

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That 2024’s Apple had not started under a lucky star, it was clear from the performance of the stock on the stock market already in the first days of the year. Then the vicissitudes linked to antitrust measures (in Europe and America), the decline in sales in China, the delay – guilty – on Artificial Intelligence. Now, there is data from the market tracker IDC to confirm that Cupertino has lost some of its driving force, the same one that made Apple the largest capitalized company in the world for years.

According to IDC Shipments of iPhone they fell 10% – worse than expected – in the quarter ended March. A figure that reflects the decline in sales in China, and which goes against the trend of a smartphone market that is finally seeing recovery numbers.

IDC believes the company shipped 50.1 million iPhones in the first three months, falling short of the average analyst estimate of 51.7 million compiled by Bloomberg. The 9.6% year-on-year decline is the steepest for Apple since Covid lockdowns trapped supply chains in 2022.

The China variable

The iPhone maker has especially struggled to sustain sales in China since the debut of its latest model (the iPhone 15) last September. The Rebirth of Rivals (from Huawei to Xiaomi ) which have produced high-performance smartphones, combined with Beijing’s ban on foreign devices in the workplace and a new injection of patriotism, have weighed on Apple’s sales. And they could weigh again during the year, waiting for the company to reveal its moves on artificial intelligence during the next WWDC in June, which is perhaps the most eagerly awaited in recent years.

Apple bucks the trend

The decline in iPhone shipments is significant given that the overall mobile market has seen its best growth in years. Smartphone makers shipped 289.4 million handsets in the period, marking a 7.8% increase from a low a year ago, when many manufacturers were grappling with a glut of unsold devices. Samsung Electronics Co. regained first place in the March quarter, while China’s Transsion (unknown to most) increased shipments by 85%, and Xiaomi is also recovering.