Another estimate on iPhone shipments for Q1 2019 (Apple’s Q2) is out today, this time from Canalys. The firm’s numbers show a little better news for Apple compared to the 30% drop in shipments estimated by IDC yesterday. However, the report still says that the iPhone performance marks the “largest single-quarter decline in the history of the iPhone.”
Last evening, IDC released its preliminary numbers on global smartphone shipments for the March quarter. The report showed a decline of 6% across the entire smartphone market with Apple seeing a massive 30% drop in iPhone shipments.
Today’s data from Canalys (via TechCrunch) also shows a 6% decline in the smartphone market overall, but a less dramatic drop of 23% in YoY iPhone shipments with 40.2 million units. But that still signals the biggest quarterly decline in the history of Apple’s smartphone.
Canalys’ Ben Stanton shared more about the tough quarter to TC, highlighting as we heard yesterday about difficult in the US market:
“This is the largest single-quarter decline in the history of the iPhone,” said analyst Ben Stanton in a release tied to the news. “Apple’s second largest market, China, again proved tough. But this was far from its only problem. Shipments fell in the US as trade-in initiatives failed to offset longer consumer refresh cycles. In markets such as Europe, Apple is increasingly using discounts to prop up demand, but this is causing additional complexity for distributors, and blurring the value proposition of these ‘premium’ devices in the eyes of consumers.”
Tim Cook shared on the company’s earnings call yesterday that Apple expects the greatest iPhone challenges may be behind it (for now), Stanton concurred by saying iPhone “show[ed] signs of recovery towards the back-end of the quarter,” which is promising for Q2.
While iPhone shipments may have been down somewhere between 23%-30%, iPhone revenue for the March quarter was down 17%, with the difference likely due to the increasing average selling price of the devices over the last few years.
Even though iPhone had difficulty during the quarter, the rest of Apple’s business performed very well, and Wall Street has responded positively to with over a 6% jump in AAPL shares. That put the company back over a $1 trillion-dollar market cap today.