Apple's iPhone Shows Resilience While Global Smartphone Market Hits Lowest Q3 Levels In A Decade

Apple Inc. AAPL has once again emerged as the most resilient smartphone maker in the world, reporting the slowest decline in iPhone shipments in the September 2023 quarter.

What Happened: Apple reported a 9% decline in iPhone shipments in the September 2023 quarter, while the global smartphone market hit its lowest levels during this quarter in a decade, according to analytics firm Counterpoint Research.

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"Volumes declined year-on-year largely due to slower than expected recovery in consumer demand," the firm said.

Apple increased its market share to 16% in September 2023 from 15% a year ago. This year, the iPhone 15 series was on sale for one week less in the September quarter, shifting some of the demand to the next quarter.

The one less week of iPhone 15 availability has also had an impact on Apple's performance on a sequential basis, with its market share falling from 17% in the June quarter.

Amongst the top five players, Apple posted the lowest decline at 9%. Samsung Electronics Co Ltd.'s SSNLF shipments fell 13%, while Xiaomi Corp. XIACY declined the most at 15%. Other Chinese players, Vivo and Oppo, fell 14% and 10%, respectively.

Why It Matters: The global smartphone industry has posted its ninth consecutive quarter of decline amidst an economic slowdown around the world.

Another factor that has played a role is the changing patterns of smartphone purchases. For the full year 2023, the global smartphone industry is expected to register a decline, "reaching its lowest level in the decade largely due to a shift in device replacement patterns, particularly in developed markets."

However, things look bright as far as the December quarter is concerned. The festive season in India, the 11.11 sales event in China, and the holiday season with Christmas and end-of-year sales are all expected to boost the smartphone industry.

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