Apple’s 2024 Troubles Persist as Global iPhone Shipments Decline by Almost 10%

Global shipments of Apple’s iPhone fell nearly 10% in the first quarter, marking a setback for the tech giant as it faces increased competition from Chinese rivals like Xiaomi. According to market intelligence firm IDC, Apple’s Q1 shipments dropped 9.6% year over year, from 55.4 million units to 50.1 million units, with the company’s global market share slipping from 20.7% to 17.3%.

While Apple remains the second-largest smartphone maker in the world behind Samsung, Chinese companies like Xiaomi and Transsion are gaining momentum. Xiaomi saw a 33.8% increase in shipments to 40.8 million units, while Transsion shipments rose 84.9% to 28.5 million units.

Apple’s struggles in China have been a significant factor in its declining performance, with iPhone revenue falling 13% in the first quarter. The ongoing geopolitical tensions between the US and China have also impacted Apple, with Chinese officials reportedly discouraging the use of foreign-made phones in the office.

Despite these challenges, Apple is looking to diversify its manufacturing capabilities away from China, with a focus on Vietnam and India. The company is also facing legal challenges, including an antitrust lawsuit from the Department of Justice and a $2 billion fine from the European Commission.

However, there may be hope on the horizon for Apple, as the company is expected to announce generative AI-based capabilities at its WWDC developer conference in June. If implemented successfully, this technology could provide a much-needed boost to iPhone, iPad, and Mac sales.

Overall, Apple’s stock has faced a decline this year, but with potential innovations on the horizon, the company may be able to turn things around in the latter half of the year.