Apple faced a more severe decline in iPhone shipments than anticipated during the March quarter, primarily due to decreasing sales in China, despite the overall rebound of the smartphone industry. This drop came after Apple's successful performance in the December quarter, where it briefly took over Samsung as the world's leading phone maker, but has now slipped back to the second position with a 17.3 percent market share as Chinese brands like Huawei are expanding their market presence.
During the January-March period, global smartphone shipments rose by 7.8 percent, reaching 289.4 million units, with Samsung overtaking Apple to become the top phone maker with a 20.8 percent market share. Apple has struggled to maintain its sales in China, facing challenges from Huawei's resurgence, increased domestic competition, and a ban on foreign devices in the Chinese workplace that have impacted its performance in the region. Despite shipping 50.1 million iPhones in the first quarter according to IDC data, Apple's market share and sales in China have experienced a decline.
The smartphone market landscape is evolving, with both Samsung and Apple facing negative growth in the first quarter. Samsung seems to be in a better position overall, rebounding from recent setbacks, according to IDC's research director Nabila Popal. Xiaomi, another Chinese smartphone giant, secured the third position during the first quarter with a market share of 14.1 percent. Meanwhile, Samsung's latest flagship Galaxy S24 series launch at the beginning of the year saw over 60 million units shipped, reflecting a successful performance in the market.
Apple, maintaining its position with higher average selling prices for premium models, has seen consumers opting for these devices for longer durations. However, the company has resorted to offering discounts, like the $180 markdowns in China, to stimulate sales. Apple is set to announce software updates for its devices at the upcoming Worldwide Developers Conference (WWDC) in June, where it will showcase enhancements for iPhones, iPads, and other Apple devices.