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apple
‘s
iPhone shipments fell by almost 10% in the first quarter. That’s because the tech giant has found market share advantages under pressure from Chinese rivals such as Xiaomi.
,
According to a new study.
According to market research firm IDC Research, iPhone shipments in the first quarter were 50.1 million units, down from 55.4 million units in the same period last year, and a 9.6% year-on-year decrease. The decline comes as Apple’s dominance in smartphones has waned slightly, with the company’s market share falling from 20.7% at the start of 2023 to 17.3%, still the largest among smartphone makers.
Samsung Electronics took the top spot in smartphone shipments in the first quarter, shipping 60.1 million units, down less than 1% from 2023 levels. Samsung was also feeling the pinch of dominance, with its market share falling to 20.8% from 22.5% a year ago.
The pressure on Apple and Samsung is due to the rise of rival Chinese manufacturers like Xiaomi, which is leading the overall recovery in the global smartphone market, with shipments rising 7.8% year-on-year to 200 million in the first quarter. Sales totaled 89.4 million units. In fact, China’s Xiaomi shipped 40.8 million units last quarter, an increase of 33.8% year-on-year, and its market share expanded from 11.4% to 14.1%.
“While Apple managed to take the top spot at the end of 2023, Samsung managed to reaffirm its position as the leading smartphone provider in the first quarter,” IDC Vice President Ryan Reese said in a statement. Stated. “IDC expects these two companies to maintain their positions at the high end of the market, but with Huawei’s resurgence in China and notable gains from Xiaomi, Transsion, OPPO/OnePlus, and vivo, both are likely to be affected by [manufacturers] We are looking for areas to expand and diversify. ”
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Competitive pressure on Apple’s iPhone doesn’t bode well for the company, whose quarterly profits and stock price often rise and fall based on sales of its flagship smartphone product.
Apple shares fell 0.9% in premarket trading Monday, tracking futures.
S&P500
and
Nasdaq
Both indexes rose 0.5%. Samsung shares fell 1.8% in Seoul trading on Monday.
Email Jack Denton at jack.denton@barrons.com.
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