Apple iPhone shipments drop 14% amid rising competition; value share falls

Amid intensifying market competition, Apple iPhone shipments in India dropped 14 per cent year-on-year and the value share of the brand slipped to third place behind Samsung and Vivo

The April-June quarter proved challenging for Apple, with iPhone shipments in India declining 14 per cent year-on-year due to fierce market competition, Moneycontrol reported, citing CyberMedia Research data. 

Apple's overall smartphone market ranking fell to sixth place, with a 19 per cent sequential decline in Q2. Year-over-year, iPhone shipments fell by 14 per cent, underscoring the need for strategic adjustments, the report cited Menka Kumari, a senior analyst at the Industry Intelligence Group of CyberMedia Research (CMR), as saying.

According to CMR data, the iPhone 15 series led the market with a 58 per cent share, showing strong performance. CMR forecasts that Apple's iPhone market share will reach 7 per cent in 2024, underscoring its significant presence in a competitive market. Despite the current decline, Apple's potential for growth in India remains strong, noted analyst Menka Kumari.

Meanwhile, Apple's value market share dropped, ranking third behind Samsung and Vivo, as per market research firm Counterpoint. In Q2 2023, Apple was in second place in terms of value. Analysts from Counterpoint predict a recovery for Apple in the next quarter, largely due to recent price cuts across the iPhone lineup. Despite this, Apple's value grew by 4 per cent year-on-year, driven by the increased mix of the iPhone 15 series, though this led to a slight decline in demand for earlier models during the quarter.

Counterpoint's latest report, released on July 31, noted a 2 per cent year-on-year decline in India's smartphone shipments during Q2 2024 (April-June), influenced by factors like the heatwave, general elections, and weak demand. Citing Tarun Pathak, Counterpoint's research director, the report said that Apple typically sees its weakest quarter in India during this period, but is expected to rebound in the coming quarters. Samsung led the market in value terms during Q2CY24, with Vivo moving to second place, pushing Apple to third.

iPad, MacBook post strong market performance

Meanwhile, Apple's iPad segment excelled in Q2 2024, achieving a 91 per cent quarter-over-quarter and a 47 per cent year-on-year growth, securing the second position in the tablet market. Kumari noted that strong consumer demand and robust market performance drove this growth, with the iPad 10 Series capturing 62 per cent of the market. CMR projects that Apple's iPad market share could reach 25 per cent in CY2024, emphasising its continued strength in the premium tablet segment.

Apple's Q2 2024 performance showed a mixed outcome, with the iPad's success contrasting with the challenges faced by the iPhone. Nonetheless, Apple is expected to maintain growth in the upcoming quarters, driven by new iPhone releases and festive season sales. According to Moneycontrol, Apple's non-smartphone revenue is projected to reach $1.3 billion in 2024, marking a 14 per cent year-on-year increase.

The report added that Apple's Mac shipments could grow by 15 per cent, with iPad shipments expected to rise by 2 per cent in 2024. Shipments of the Apple Watch and AirPods (TWS) are anticipated to grow by 50 per cent and 3 per cent, respectively.