iPhone, Tightly Tapped by Samsung and Chased by Chinese Newcomers
The rise of Huawei and Xiaomi as well as the Chinese government's ban on using foreign devices in the workplace has weighed on Apple.
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By
MEDIANA
·3 minutes read
JAKARTA, KOMPAS — Delivery of smartphones brand Iphone from factory to market in the first quarter of 2024 fell 9.6 percent compared to the previous period the same in 2023. This is thought to be influenced by increasing competition with other cellphone brands, especially from China.
According to the consumer market intelligence firm's research report, IDC, which was officially released Monday (15/4/2024), Apple sent 50, 1 million units of iPhone brand cell phones in the first quarter of 2024. Quoting Bloomberg, shipments in that volume were far below the average of analyst data collected by Bloomberg, which is 51.7 million cellphone units.
The decrease in shipment volume in Q1-2024 compared to the same period in 2023 is the sharpest decline for Apple since the social restrictions of the Covid-19 pandemic disrupted the supply chain until 2022.
In China, particularly, Apple is striving to maintain its iPhone sales volume since September 2023 or since the release of the latest iPhone model. The rise of Huawei Technologies Co, as well as Xiaomi Corp, and the Chinese government's policy that prohibits the use of foreign devices in the workplace have burdened overall iPhone sales.
The decline in shipments of the Iphone smartphone brand is a striking thing because IDC research found that the overall smartphone market is still recording positive growth for three consecutive quarters.
Globally, total smartphone shipments in Q1 2024 increased by 7.8 percent from the previous year to 289.4 million units. This is a strong indicator that the smart phone market is currently in recovery, despite macroeconomic challenges.
"The smart phone market has rebounded from the turmoil that occurred in the past two years, even stronger," said Nabila Popal, Director of Research at IDC.
Although Apple is very resilient and has experienced significant growth in shipments and market share in recent years, Popal said it will be a challenge to maintain the growth rate and top market share achieved in 2023.
As the smartphone market continues to recover in 2024, IDC estimates that Android smartphones will grow much faster than Apple.
The increasing competition with Chinese smart phone brands in the market, both in general and in China in particular, according to Popal, is the main cause of Apple's shipment decline in the first quarter of 2024. Several regions began the year 2024 with excess supply of iPhones from 2023.
The stock performance of Hon Hai Precision Industry Co, Murata Manufacturing Co, and LG Innotek Co, as the main suppliers for Apple, fell in Asian stock markets on Monday (15/4/2024), amid widespread selling due to market concerns over the escalating conflict in the Middle East.
The delivery of Samsung smartphones regained the top position in the first quarter of 2024, after losing to Apple's iPhone last year. Samsung's global market share currently reaches 20.8 percent.
In the first quarter of 2024, Samsung still delivered a similar number of smart phones as last year, which is 60.1 million units. In the first quarter of 2024, Xiaomi's smartphone shipments increased by 33.8 percent to 40.8 million units. Meanwhile, Transsion experienced an increase of 84.9 percent, reaching 28.5 million units.
Quoting CNBC, Transsion, a Shenzhen-based maker of smartphones, produces three brands, namely Techno, Itel, and Infinix. Several research reports taken by CNBC mention that "quietly," Transsion has become the world's fifth-largest producer of smartphones.
Bloomberg Intelligence analysts, including Steven Tseng, say that the global smartphone market has recovered from the pandemic. This has driven high sales growth during the first quarter of 2024.
Executive Director of the Institute for Development of Economics and Finance (Indef), Tauhid Ahmad, stated on Tuesday (April 16, 2024) in Jakarta that the competition among smart phone manufacturers is very tight. Among the producers, they are also creating increasingly varied product models.
"However, the challenge that smart phone manufacturers must face is that there are some consumers who do not want to replace their phones too often if there are no new features that truly have different functions from the previous phone models. Some consumers now replace their smart phones once every three years," he said.
Editor:
FX LAKSANA AGUNG SAPUTRA
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