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Preliminary data on global smartphone sales for the first quarter of 2019 (Apple's second fiscal quarter) has been reported to IDC, and the company's estimates for the iPhone look rather bleak. While the entire smartphone market recorded a 6 percent year-over-year drop in shipments during the quarter, data shows that Apple shipped 30 percent fewer iPhones than last year.
The IDC report indicates that total smartphone shipments of all brands totaled 310.8 million units in the first quarter of 2019, representing a decrease of 6.6% year-on-year. This marks six consecutive quarters of declining sales. According to IDC, the difficult start to the year for smartphones indicates that declines will continue in 2019. It should be noted that Huawei has been one of the few manufacturers to record growth during the quarter.
The results of this quarter clearly indicate that 2019 will be a new year in decline for smartphone shipments worldwide. The only highlight from the point of view of the suppliers was Huawei, which made a strong statement by increasing its volume and its share despite the headwinds of the market.
According to IDC data, Apple sold 36.4 million iPhones in the March quarter, a significant 30.2 percent drop from the same period last year, when sold 52.2 million of its smart phones.
In addition to the difficulties faced in China, IDC points to very slow sales in the United States.
it was the US market that was most affected by the slowdown in 1Q19. Smartphone volumes declined by 15% year-over-year, as replacement rates continue to slow in one of the world's largest markets. The problems faced by Apple's iPhone contributed to the exceptional weakness of the 1Q19 in the US, but they were not the only ones: Samsung, LG and other major suppliers also experienced a decline in volumes during the first quarter. quarter.
While Samsung, Xiaomi and Oppo all recorded a 6 to 10% drop in sales, none of the manufacturers saw a decline close to Apple's.
The report estimates that Apple's price declines in overseas markets such as China and Japan have not been sufficiently convincing to significantly increase sales. IDC also thinks that the iPhone is facing challenges with 5G devices and foldable smartphones on the horizon.
In terms of success, IDC mentions that Apple's securing Qualcomm modems for future iPhones and its large base of facilities is a positive momentum.
Overall, Wall Street reacted positively to Apple's revenue after business hours and the decline in iPhone sales was expected. Quarterly revenues of $ 58 billion were higher than Apple's expectations, exceeding the expectations of most analysts, and showed strong performance in services, as well as $ 5.1 billion from Apple alone Watch.
Here's how the global smartphone market ended for the quarter, according to IDC data:
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