After securing the top spot in the smartphone market in the last quarter of 2023, Apple has experienced a decline in iPhone sales, leading to a significant drop in revenue during the first half of 2024.
According to data from Stocklytics.com, Apple’s iPhone sales revenue decreased by $2.7 billion year-over-year, totaling $85.2 billion in the first half of 2024.
Rising Chinese Competition Squeezes iPhone Sales
Apple’s iPhone has been the company’s most successful product since its debut in 2007, consistently capturing market share with its blend of user experience and status symbol appeal. Despite its dominant position, Apple has faced increasing competition from Chinese smartphone manufacturers like Xiaomi, Vivo, and Oppo, which offer high-specification phones at lower prices. This aggressive competition has significantly impacted iPhone sales, contributing to a notable decline in both revenue and shipments.
According to IDC’s Quarterly Mobile Phone Tracker, Apple shipped 50.1 million iPhones in the first quarter of 2024, five million fewer than during the same period last year. This drop in shipments corresponded with a nearly 10% decrease in sales, which fell to $45.9 billion. The downward trend continued in the second quarter, with iPhone shipments increasing slightly by 1.5% year-over-year to 45.2 million units, yet quarterly revenue still declined by $400 million, reaching $39.2 billion, according to Apple’s official data.
The cumulative effect of two consecutive quarters of declining sales resulted in a significant $2.7 billion drop in revenue. The tech giant reported $85.2 billion in iPhone sales for the first half of 2024, down from nearly $88 billion during the same period the previous year.
iPhone shipments as a share of global smartphone shipments also saw a decline. IDC data shows that Apple’s market share dropped to 15.8% in the second quarter of 2024, down slightly from 16% in the same quarter of the previous year. Meanwhile, Apple’s main competitor, Samsung, also saw its market share slip, falling from 20% in Q2 2023 to 18.9% in Q2 2024.
iPhone Sales Now Represent Roughly 46% of Apple’s Total Revenue, Down 2% from Last Year
The revenue decline over the past two quarters has also led to a reduced contribution of iPhone sales to Apple’s overall revenue. According to the company’s official figures, iPhone sales accounted for nearly 46% of Apple’s total revenue in the third quarter of fiscal year 2024, down 2% from the same period last year.
This marks a significant decline compared to the period between 2017 and 2020, when iPhone revenue contributed between 55% and 60% to Apple’s total revenue. Meanwhile, Apple’s other businesses, including the iTunes Store and Apple Watch, have seen their revenue shares grow, increasing from around 5% in 2017 to nearly 30% in the third quarter of fiscal year 2024.
