According to data from Stocklytics.com, Apple’s iPhone revenue they dropped by $2.7 billion yearly to $85.2 billion in the first half of 2024.
This decline follows a period of strong performance in the smartphone market, during which Apple briefly led in market share during the final quarter of 2023.
Despite the recent revenue decline, Apple’s resilience as a significant player in the smartphone industry since the iPhone’s debut in 2007 is evident.
The decline can be attributed to increasing competition from Chinese manufacturers, a challenge that Apple is actively addressing.
This resilience should reassure stakeholders about Apple’s ability to navigate the competitive landscape.
Brands like Xiaomi, Vivo, and Oppo have gained market traction by offering high-specification phones at competitive prices, challenging Apple’s market position.
Data from the IDC Quarterly Mobile Phone Tracker reveals that Apple shipped 50.1 million iPhones in the first quarter of 2024, a decrease of five million units from the previous year. Revenue for Q1 2024 fell nearly 10% to $45.9 billion.
The downward trend persisted into the second quarter, where, despite a slight increase in shipments to 45.2 million units, revenue decreased by $400 million to $39.2 billion.
This two-quarter decline has resulted in a substantial drop in iPhone revenue, from nearly $88 billion in the first half of 2023 to $85.2 billion in the same period in 2024.
Apple’s share of global smartphone shipments also fell, with IDC data showing a decrease in market share from 16% in Q2 2023 to 15.8% in Q2 2024.
Samsung, Apple’s primary competitor, also experienced a decline, with its market share dropping from 20% in Q2 2023 to 18.9% in Q2 2024.
The iPhone’s contribution to Apple’s total revenue has similarly diminished.
In Q3 of fiscal year 2024, iPhone sales accounted for approximately 46% of Apple’s total revenue, down from 48% in the same period last year.
This figure shows a marked decrease from 55% to 60% in revenue share that iPhone sales represented between 2017 and 2020.
It underscores the urgency of Apple’s diversification of revenue streams, making the audience aware of the company’s need to adapt to changing market dynamics.
Meanwhile, other Apple divisions, such as the iTunes Store and Apple Watch, have seen their revenue contributions grow significantly.
This growth, collectively rising from around 5% in 2017 to nearly 30% in Q3 FY 2024, is a testament to Apple’s successful diversification strategy.
This should instil optimism in stakeholders about Apple’s ability to adapt and grow in a changing market.
