Apple’s iPhone Shines Amidst Smartphone Market Slump in Q2
The U.S. smartphone market experienced a 24% year-on-year (YoY) decline in shipments in Q2 2023, marking the third consecutive quarter of such declines, according to Counterpoint Research’s Market Monitor data.
Amidst this downturn, Apple’s resilience has been noteworthy, with its shipments falling by only 6% year-over-year (YoY), compared to a 38% decline for Android smartphones.
Despite the overall market contraction, Apple’s share of shipments increased YoY, demonstrating the brand’s robustness in the face of economic uncertainty. Research Analyst Matthew Orf commented, “Despite the ongoing strength in the job market and falling inflation numbers, consumers hesitated to upgrade their devices amid market uncertainty. However, expectations from the upcoming iPhone 15 remain bullish.”
While the smartphone market saw a general decline, the foldable market reached significant milestones. New foldable models were launched by Google and Motorola, providing alternatives to Samsung’s Galaxy foldables. With Samsung’s new Galaxy Z Flip and Z Fold devices expected in Q3 2023, foldable shipments could reach their highest level ever in the U.S.
“Despite fewer shipments from Apple compared to the same quarter last year, the brand’s share of shipments was still up 10% YoY. Apple’s resilience was driven by strong promotions across postpaid and prepaid. We observed new highs for trade-in credit with Verizon offering up to $1,100 for the Pixel Fold,” said Associate Research Director Hanish Bhatia in a statement.
Despite the overall weakness in demand, the upcoming iPhone 15 could offset the decline across Android, according to Jeff Fieldhack, Director of North America Research. “Weakness is likely to continue through the start of Q3 2023, but stronger iPhone 15 demand could offset weakness across Android,” said Fieldhack.
This report underscores the strength of Apple’s brand and the anticipation surrounding the iPhone 15, even as the overall smartphone market faces challenges. Rumours point the next iPhone could come with a price increase, but it’s unclear who will still be willing to pay a premium iPhone this fall (likely some still).