iPhone Sales Decline Due to Weak Demand for Apple Intelligence

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by Giorgi Kostiuk

2 years ago

Despite global smartphone market growth, Apple experienced a 5% decline in iPhone sales last quarter, driven by weak demand for Apple Intelligence.

Decline in iPhone Market Share

In the last quarter, iPhone's market share fell by 1% to 18% in 2024. Chinese competitors, including Xiaomi and Vivo, gained market share at the expense of Apple and Samsung. According to IDC, Apple shipped 4.1% fewer smartphones, while the overall market grew by 2.4%.

Chinese Market and Apple Intelligence

Apple Intelligence is not yet available in China, making it less attractive to local buyers. The company is seeking partners to implement AI features in China, Apple's biggest market outside the US and Europe. Sales of high-end models like Pro and Pro Max are increasing, despite overall challenges.

Competition from Chinese Manufacturers

Chinese smartphone makers are developing their own AI tools, posing additional challenges for Apple in this segment. IDC's Francisco Jeronimo noted that Chinese companies reached record shipment volumes, capturing 56% of the global smartphone market.

This past quarter was particularly remarkable for the largest Chinese smartphone vendors. They achieved a historic milestone as they shipped the highest combined volume ever in a quarter, representing 56% of the global smartphone shipments.Francisco Jeronimo

The decline in iPhone sales is attributed to the limited rollout of Apple Intelligence and growing competition from Chinese brands. To maintain its position in China, Apple must tailor its offerings to meet local market needs.

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