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iPhone sales are falling. Here’s why – WSVN 7News | Miami News, Weather, Sports | Fort Lauderdale

(CNN) — Apple’s smartphone sales fell a staggering 10% last quarter, according to research firm IDC. The main cause: iPhone sales in China fell sharply.

The company has lost momentum in China as nationalism, a struggling economy and increasing competition have hurt Apple in recent months.

“It’s a sharp decline for Apple, but considering where we have been over the last four years, Apple has probably been the most resilient brand and has weathered supply chain issues and macroeconomic challenges better than other brands,” said Nabila Popal. Research director at the IDC told CNN.

Samsung has been the leading smartphone manufacturer for the past 12 years. Apple took the crown last year – but only for a quarter. According to IDC, Samsung already took the top spot in the first quarter of 2024.

“It is also very important that Samsung is back at the top,” Popal said. “We expect Android to grow twice as fast as iOS this year.” (Android is the operating system used by Samsung systems, while iPhones use iOS.)

That’s because Android has seen a sharp decline in recent years, so there’s now more room for growth. Both Apple and Samsung did not respond to a request for comment.

Overall, IDC said Global smartphone shipments rose 7.8% year-on-year to around 289 million devices in the first quarter of 2024, indicating that the smartphone market is getting back on its feet after two years of macroeconomic challenges.

Samsung had about 20.8% of the market share in the quarter (or 60.1 million shipments), followed by Apple at 17.3% (50.1 million shipments). The Chinese manufacturer Xiaomi accounted for 14.1% (40.8 million deliveries).

In December, Apple overtook Samsung as the leader in the smartphone category, ending Samsung’s 12-year run at the top with a 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 influence in the market, the resurgence of Huawei and other companies in China, including Xiaomi and OPPO/OnePlus, is likely to continue. Chinese consumers who once would have thought of Apple are now turning to national brands in China.

China remains an important market for Apple as it is the largest market after the US. The company continues to offer discounts in China to boost sales.

Last year, Huawei’s popular Mate 60 smartphone made headlines when the US government sought more information about the Pro model, which featured a sophisticated processor. Its debut shocked industry experts, who questioned how the company could produce such a chip after the United States restricted China’s access to foreign chip technology due to perceived national security concerns.

Popal also pointed out that Apple hasn’t expressed a strong message about artificial intelligence, even though many tech companies are increasing their focus on related strategies and features.

We hope to hear some news on this at the developer conference in June,” she said. “We are confident that if they offer something to consumers, they will generate more interest than they have previously faced.”

However, Samsung has already fully embraced AI. With its latest flagship Galaxy S24 series, announced in January, the company made a point of integrating AI advances into its messaging, photos and games.

“With the overall smartphone market recovering this year and a strong focus on AI, Samsung is well-positioned to continue growing this year,” she added.

The-CNN-Wire™ & © 2024 Cable News Network, Inc., a Time Warner company. All rights reserved.

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