Apple iPhone sees 14% slump in shipments amid simmering competition; slips in value share

Apple iPhone 15 series

The April-June quarter was unfavourable for smartphone giant Apple, with its iPhone shipments in India declining 14 percent year-on-year due to intense competition in the market, according to the latest data by CyberMedia Research accessed by Moneycontrol.

Apple, which was ranked sixth in the overall smartphone market, experienced a 19 percent sequential decline in Q2. "Year-over-year, iPhone shipments fell by 14 percent, highlighting the need for strategic adjustments," Menka Kumari, senior analyst at the Industry Intelligence Group of CyberMedia Research (CMR), told Moneycontrol.

Shipment refers to devices shipped to the first point of sale in the channel, or distributors, for consumption in the domestic market.

According to a separate note from the market research firm Counterpoint, Apple fell in terms of value market share and ranked third after Samsung and Vivo. Samsung led the market in value market share with 24.3 percent, followed by Vivo and Apple with 16.8 percent and 16.4 percent, respectively.

Last year, in Q2 2023, Apple ranked second in terms of value.

Apple iPhone revenues declined 20 percent in the quarter. Analysts at Counterpoint stated that Apple is anticipated to make a comeback in the next quarter, thanks to the recent price reductions across the entire iPhone range. Apple’s value growth was 4 percent year-on-year, as the mix of 15 series increased. Consequently, demand for the earlier generation declined slightly in the quarter.

Counterpoint's latest report, released on July 31, said India’s smartphone shipments fell 2 percent year-on-year in Q2 2024 (April-June) due to factors such as a heatwave sweeping through large parts of the country, the general elections, and sluggish demand.

Tarun Pathak, research director at Counterpoint, told Moneycontrol that April-June typically is Apple's weakest quarter in India. “They will bounce back in coming quarters. They are strongest in the last quarter of the calendar year, which starts just after their flagship launches. In Q2CY24, Samsung was the number one player in value terms while Vivo moved up the ladder and became number two, pushing Apple to third spot.”

The iPhone 15 series, however, led with a robust 58 percent market share, demonstrating strong performance, as per CMR data.

CyberMedia Research (CMR) projects Apple's iPhone market share to reach 7 percent for 2024, affirming its significant role in a competitive landscape. “Even with the current growth decline, Apple’s potential for expansion in India remains strong,” Kumari said.

Apple's iPad segment delivered an exceptional performance in Q2 2024, marked by a 91 percent quarter-over-quarter and a 47 percent year-over-year growth, driving the brand to the second slot in the tablet market.

"Growth for iPads was driven by strong consumer demand and robust market performance. Year-over-year, iPad shipments rose by 47 percent, with the iPad 10 Series capturing 62 percent of the market,” she said.

The iPad 10's dominance and the strong showing of newer models like the iPad Air and iPad Pro solidified Apple's position as a leading player in the market.

CMR projects Apple's iPad market share could reach 25 percent in CY2024, underscoring its continued dominance in the premium tablet market.

“Apple's Q2 2024 performance presents a mixed picture. The iPad's success story contrasts sharply with the iPhone's challenges. That said, Apple will navigate and sustain the growth momentum in the upcoming quarters, driven by the new iPhones and the festive season sale,” she said.

Moneycontrol reported on July 29 that Apple's non-smartphone revenue is projected to reach $1.3 billion in 2024, reflecting a 14 percent year-on-year growth.

According to exclusive Counterpoint estimates shared with Moneycontrol, Apple's Mac shipments are projected to rise by 15 percent, while iPad shipments are expected to increase by 2 percent in the 2024 calendar year. Additionally, shipments of the Apple Watch and AirPods (TWS) are anticipated to grow by 50 percent and 3 percent.