Picture taken on Aug. 14, 2023 exhibits iPhones at an Apple retailer in Hangzhou, East China’s Zhejiang province. On the identical day, information launched by TechInsights confirmed that Apple’s iPhone gross sales in China surpassed the US for the primary time within the second quarter of 2023, turning into the biggest single marketplace for iPhone shipments.
Costfoto | Nurphoto | Getty Pictures
World smartphone shipments this 12 months are on observe to be the worst in a decade, Counterpoint Analysis mentioned in a report on Thursday, because the market is dragged down by the U.S. and China.
Nonetheless, Apple may grow to be the largest participant in smartphones this 12 months by shipments, as its high-end iPhone gross sales stay resilient, the report added.
Measuring anticipated demand, shipments usually are not equal to gross sales and signify the variety of units that smartphones distributors ship to retailers.
Counterpoint Analysis mentioned it expects smartphone shipments in 2023 to say no 6% year-on 12 months to 1.15 billion units.
“Asia is likely one of the main hurdles to constructive progress, as headwinds halt the financial turnaround anticipated for China at the beginning of the 12 months, and the broader area experiences intensifying declines throughout rising markets,” Counterpoint mentioned in its report.
China’s financial system this 12 months has sputtered and never lived as much as expectations of a speedy restoration, whereas shoppers stay cautious on spending.
Chinese language smartphone purchases, which used to common 450 million units a 12 months at their peak, have shrunk to 270 million per 12 months — contributing as a serious trigger behind the decline in world smartphone gross sales, Karn Chauhan, senior analyst at Counterpoint Analysis advised CNBC through e mail.
North America continues to dampen the worldwide restoration, with a “disappointing” first half of the 12 months setting the area up for double-digit full-year declines, Counterpoint’s report mentioned.
“Regardless of energy within the jobs market and inflation falling, shoppers are hesitant to improve their units, pushing substitute charges for the US and globally to report highs,” the analysis agency mentioned.
‘Apple in a great place’
The premium finish of the market with increased priced units has remained fairly resilient, regardless of a fall in total smartphone shipments.
Apple is gearing as much as launch its subsequent flagship smartphone — the iPhone 15 — in September. That might give the corporate a robust exhibiting going into the tip of the 12 months, Counterpoint mentioned.
“However we’re watching This autumn (fourth quarter) with curiosity as a result of the iPhone 15 launch is a window for carriers to steal high-value clients. And with that large iPhone 12 put in base up for grabs promos are going to be aggressive, leaving Apple in a great place,” Jeff Fieldhack, analysis director for North America at Counterpoint Analysis, mentioned in a press launch.
Chauhan mentioned the analyst agency expects Apple shipments to be up “marginally” year-on-year, given demand in markets like China and different Asian nations the place there’s a “rising premiumization pattern” — which means that individuals are keen to pay a better value for telephones.
Apple’s iPhone vary helps Apple play within the premium phase of the smartphone market.
Counterpoint Analysis mentioned that the U.S. firm may this 12 months take the highest spot globally when it comes to annual shipments for the primary time ever. Samsung was the largest participant by market share within the second quarter of the 12 months.
“It is the closest Apple’s been to the highest spot. We’re speaking a few unfold that is actually just a few days’ value of gross sales,” Fieldhack mentioned. “Assuming Apple does not run into manufacturing issues prefer it did final 12 months, it is actually a toss up at this level.”
Apple has made a push into new markets, with India being a focus for the corporate in 2023, because it tries to capitalize on native shoppers’ urge for food for premium units. The U.S. firm opened its first bodily shops in India this 12 months, with CEO Tim Prepare dinner visiting the nation.
Apple’s capability to develop out there may even issue into whether or not it finally ends up because the primary smartphone maker this 12 months, in response to Chauhan.
“The reception of the iPhone 15 and progress in non-core iPhone markets will determine if Apple surpasses Samsung on the full-year stage or not,” Chauhan advised CNBC.
