Yes, this is yet another article about declining iPhone sales. Yes, I know you’re tired of reading them. Trust me when I say that you cannot be more tired than I am of writing them. It’s the same script of iPhone sales see an astonishing dip in year-over-year sales, Tim Cook says something to defend it, it’s because of prices being too steep, the foreign exchange rate is too high, the market is too saturated, yada yada yada. But here we are again, and I’ve got a dog to feed at home and behavioral school to pay for (for him, not me), so let’s just go down this road…again. Yay! Not.
Apple Reports Poor iPhone Sales. Yet Again!
So, Apple has taken the sneaky way out and no longer report the exact units of iPhones they ship. But what they do do is a quarterly earnings call, and for the last few quarters, it’s been far from favorable. And when it comes to the first quarter of this year, their reported revenue from iPhones sales is $31 billion. This regardless of being a big number is still a 15% decline in year-over-year sales. However, the results were better than the predicted 20-22% decrease.
The Analysts Analyze iPhone Sales
While Apple left out the exact unit sales of iPhones, the analysts jumped in with their reverse working systems and shared the estimated iPhone shipments in this quarter.
According to the experts over at the International Data Corporation (IDC), “Apple had a challenging first quarter as shipments dropped to 36.4 million units representing a staggering 30.2% decline from last year.” That’s a huge percentage and could just mean that an irreversible decline in iPhone sales is upon us.
But while IDC has proved to be a reliable source of information, let’s also look at those firms that painted a slightly prettier picture. Those over at Counterpoint Research estimated the number of units shipped to be around 42 million, i.e. a 20% decline. Canalys, on the other hand, reported an estimated 23% fall.
But even if their numbers are closer to reality than IDC’s, a 20% or 23% decline is no laughing matter. In the words of Calays analyst, Ben Stanton, “This is the largest single-quarter decline in the history of the iPhone.”
But how is it that the dip in revenue is less than the decline in the estimated number of handsets sold? Well, this can be easily attributed to the ever-rising prices of iPhones that generate more revenue even as the rate at which they usually fly off the shelf slows down.
Is 2019 Going to Be A Downward Spiral?
When it comes to predicting the iPhone’s fortune for this year, here too, the three disagree.
IDC, once again, paints the bleakest picture. According to them, iPhone sales will only see a positive change in 2020 once their deal with Qualcomm comes to fruition and they’re able to launch 5G iPhones.
Canalys, on the other hand, is more optimistic. According to them, “iPhone did show signs of recovery towards the back-end of the quarter, and this momentum will carry into Q2.”
But while these two are looking towards the future, Counterpoint is thinking in terms of the root of the problem – Innovation. As per them, “It is increasingly difficult for Apple to grow ASP’s and China remains a declining market for the company. Apple’s services, user experience, and companion products make up for its slow adoption of the newest technologies.”
Is This the End Or Just A Bend?
That’s the main question we should all be asking here. Apple has two options here. Either they can adapt and catch up with their competitors. Or they can get left behind. Which one will they do? Well, only time and tech-Gods will tell. What do you think it’s going to be? Will iPhone sales rise from the ashes like a phoenix or will they curl up in the ashes and die? Sound off in the comment section below! Later, skater.
