The iPhone 16 lineup launched with a fair amount of changes, but it has failed to make a difference to the device shipments. According to recent reports, iPhone sales stalled overall despite the increase in overall smartphone shipments. This means that users are upgrading to newer models, but only some of them are choosing the iPhone. There could be potential reasons for this behavior, and Apple Intelligence could be one of them.
Apple Intelligence failed to make an impact on the iPhone’s shipments, with the overall smartphone market gaining ground in China
According to new data published by IDC, Apple only experienced minimal iPhone growth in 2024 despite a significant rebound in the overall smartphone market. The global smartphone shipments were recorded to be 6.2 percent, which means that a total of 1.24 billion devices were sold. However, Apple only saw a 0.4 percent increase in iPhone shipments during the same time.
As mentioned, the iPhone 16’s adoption could boil down to the company’s Apple Intelligence features and how they failed to make an impact three months after launch. Apple has yet to release its major iOS 18.2 update, which will bring ChatGPT support to Siri, Image Playground, and Genmoji. It remains to be seen how the public will respond to the update and whether the new additions will bring real-world benefits.
The slow growth of the iPhone is also attributed to competition in China, as Apple has faced various challenges in the region revolving around legal matters. The company’s competitors, like Huawei, Oppo, and Xiaomi, have been adopting aggressive pricing strategies and technological innovations. Huawei and Xiaomi are heavily investing in the development of new Hardware and software, along with their custom chips, which could give Apple a hard time in the future as well. It was recently reported that Xiaomi is planning to develop its 3nm custom chip to rival the likes of Qualcomm, Apple, Huawei, and MediaTek.
Huawei has also introduced its Mate 70 with its in-house processor along with HarmonyOS, which has reduced its reliance on Google. The company would also be able to expand its smartphone business into additional markets, which could allow it to further enhance its sales. Other than this, Android device makers boosted the smartphone market with a growth of 7.6 percent, and most of the improvements in overall shipments came from Asia Pacific, the Middle East, and Africa.
This means that Android smartphone makers have succeeded in offering their devices with a very affordable price tag. While Apple did not see major growth, it was able to take the lead in the industry’s profits, as it has always used the premium pricing strategy to rake in revenue. The research firm speculates that iPhone shipments will improve next year, with 3.1 percent growth for iOS devices compared to 1.7 percent for Android devices.
The overall smartphone market saw an uptick due to the entry of low to mid-range devices in regions with low smartphone penetration. The research firm also indicates that generative AI features failed to make an impact on the overall smartphone shipments. We will share additional details on the market trends as soon as further information is available.
