iPhone Sales Drop in Almost all markets: A sign of worry?

Many critics of the iPhone have asserted that the device once known for innovation has failed to bring it in the last 4-5 generations of smartphones. This is why the company is investing heavily in other ventures. According to the latest results from Apple, the sales of iPhones have dropped in almost every market across the globe.

The company said that the demand for its iPhones fell by more than 10% in the first three months of this year, with sales dropping in every geographic region except for Europe. It also revealed that the revenues across the company fell by 4% to $90.8bn (£72.5bn), which was the biggest decline for more than a year.

Still, the results were not as bad as forecasted and Apple’s share price went up in after-hours trading in New York, as per the company. It added that the figures were distorted by Covid-related supply disruptions, which was the reason for strong sales during the same period last year.

Apple pledged that sales would return to growth in the next months owing to upcoming product launches and investments in artificial intelligence (AI).

Besides, iPhone sales in the critical greater China market fell by 8%. In this regard, Apple’s CEO Tim Cook tried to reassure investors regarding the state of the business in the world’s second-largest economy, noting that iPhone sales were up in “mainland” China. “I maintain a great view of China in the long term,” he said. The competition in the Chinese market has been intensifying from local rivals such as Huawei.

The senior software analyst at DA Davidson, Gil Luria, said companies such as Huawei perform good in China because “it is the homegrown brand”. “But in terms of features, functionality and prestige, iPhone still has an advantage over any other handset,” he told the BBC’s Today programme.

“So any time consumers get the choice and have the resources they’re going to buy an iPhone – that’s not any different in China.”

Mr Luria said that for Apple, there hasn’t been “significant improvements to the handset” since the iPhone 12 was launched almost four years ago “when Apple introduced 5G connectivity which compelled a lot of consumers to upgrade the phone”. “What they’re hoping for now is that they can introduce enough new AI features into the iPhone 16 which will come out later this year in order to finally drive a big iPhone upgrade cycle,” he added.

Source: BBC