iPhone Shipments May Drop this year Due to these Reasons

The top Apple analyst, Ming-Chi Kuo of TF International Securities, recently said that shipments of iPhones will probably be affected this year because of the growing popularity of foldable phones and Huawei’s revival in the Chinese smartphone market.

In a blog post, Kuo wrote that Apple curtailed shipments of “key upstream semiconductor components” to about 200 million units, which indicates a 15% year-over-year decline in iPhone shipments. Moreover, he mentioned that Apple’s weekly shipments in China have plunged by 30% to 40% as compared to last year, “and this downward trend is expected to continue.” “Apple may have the most significant decline among the major global mobile phone brands in 2024,” Kuo wrote.

Huawei’s revival as a leading smartphone manufacturer, along with the “increasing preference for foldable phones among high-end users as their first choice” in the Chinese local market, are the primary reasons for the iPhone’s possible decline, Kuo wrote. New phone designs integrating generative artificial intelligence are also altering the market.

Apple is scheduled to publish its quarterly results this week. The analysts are anticipating revenue growth of just 0.6% from a year earlier to $117.91 billion, according to LSEG, formerly Refinitiv. And average projections show Apple recording single-digit growth for the rest of the calendar year.

On the other hand, Samsung has increased shipments of its latest Galaxy S24 series in 2024 by 5% to 10% as it sees “higher-than-expected” demand owing to its AI-powered features, Kuo wrote. Apple, meanwhile, has reduced its shipment forecast for the latest iPhone 15 to the first half of 2024, he added.

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