Apple Faces Worst iPhone Slump Since Covid As China Rivals Rise
fliptop writes:
Apple shipped 50.1 million iPhones in the first three months, according to IDC's preliminary figures, falling shy of an average of analyst estimates compiled by Bloomberg of 51.7 million units for the period:
Apple Inc.'s iPhone shipments slid a worse-than-projected 10% in the March quarter, reflecting flagging sales in China despite a broader smartphone industry rebound.
The company shipped 50.1 million iPhones in the first three months, according to market tracker IDC, falling shy of the 51.7 million average analyst estimate compiled by Bloomberg. The 9.6% year-on-year drop is the steepest for Apple since Covid lockdowns snarled supply chains in 2022, the researchers said.
The Cupertino, California-based iPhone maker has struggled to sustain sales in China since the debut of its latest model in September. The resurgence of rivals from Huawei Technologies Co. to Xiaomi Corp. and a Beijing ban on foreign devices in the workplace have all weighed on sales. The IDC data provides the first snapshot of the global performance of Apple's most important product ahead of earnings on May 2.
[...] The drop in iPhone shipments is significant given the overall mobile market registered its best growth in years.
[...] Average selling prices for handsets are rising, as consumers increasingly opt for premium models that they intend to hold on to for longer, IDC's researchers found. Apple, which consistently maintains the highest ASP in the industry, has led the way in this, with consumers showing a distinct preference for its higher-tier models. Still, the company has this year resorted to unusual discounts to spur sales, with some retail partners in China taking as much as $180 off the regular price.
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