iPhone shipments plummet: A wake-up call for Apple

With the release of the first quarter financial report of 2024, the global technology giant Apple once again stood at the forefront of public opinion.

According to the latest data from the International Data Corporation (IDC), global iPhone shipments fell sharply by 9.6% year-on-year from January to March this year. This decline not only set a new high in recent years, but also triggered a stir in the industry. Deep concerns about Apple's future development.

Well-known industry analyst Ming-Chi Kuo has previously predicted Apple’s market performance, predicting that iPhone shipments in 2024 are expected to be approximately 200 million units, which will plummet compared to 310 million units in the same period in 2023. About 38%. Looking back at IDC's data for the first quarter of this year, it highlights Apple's decline in the global smartphone market.

Ming-Chi Kuo pointed out the reasons for the sharp decline in iPhone shipments. One of the reasons is that Apple’s innovation in iPhone products has been insufficient in recent years, resulting in consumers’ lack of enthusiasm for new products. expectations gradually decreased.

Although Apple has always been known for its innovation and excellent user experience, its pace of product innovation has slowed down significantly in recent years, especially in appearance design and functional updates, which lack eye-catching new elements.

In addition, intensified market competition is also one of the important reasons for the decline in iPhone shipments. As competitors such as Samsung and Huawei continue to introduce new products, their products are gradually competing with the iPhone in terms of performance, design and functionality. In particular, some emerging brands have attracted the attention of a large number of consumers with their innovative technologies and more cost-effective products.

It is worth noting that with the rapid development of artificial intelligence technology, AI mobile phones have become the new favorite of the market. However, Apple’s layout in the field of AI mobile phones is relatively lagging behind, and it has not been able to keep up with the market in time. Although Apple has strong research and development capabilities in AI technology, its pace in applying AI technology to mobile phone products is obviously slower than that of some competitors.

Earlier IDC predicted that folding screen mobile phones are expected to grow 37% year-on-year, and shipments will reach 25 million units in 2024; while AI smartphone shipments will reach 170 million units, accounting for the total smartphone market Nearly 15% of the volume, even exceeding AIPC. With continued push from industry players, the next generation of AI smartphones will grow rapidly after 2024.

IDC analysts said that consumers are willing to pay more for high-end mobile phones, and the innovation of folding screen mobile phones and device-side AI will further promote this trend.

Faced with the challenge of declining shipments, Apple is also actively seeking solutions. It is understood that Apple plans to introduce a series of AI functions, including chatbots, to the iPhone in the second half of this year to enhance the intelligence level of the product.

At the same time, Apple is also strengthening cooperation with other fields and exploring new growth points. But for Apple, relying solely on the introduction of AI technology may not be enough to solve the fundamental problem of declining shipments. In a fiercely competitive market environment, Apple needs to pay more attention to product innovation and grasp market demand, and speed up technological changes to meet the changing needs of consumers.

Industry insiders said that as the world’s leading smartphone manufacturer, Apple’s brand influence and technical strength are still strong. However, in the face of market challenges and innovation bottlenecks, Apple needs to keep a clear head, actively respond to market changes, and constantly introduce new products to win the trust of consumers and market recognition.

The plunge in iPhone shipments in the first quarter sounded the alarm for Apple. In future development, Apple needs to pay more attention to product innovation and matching market demand to maintain its leading position in fierce market competition. Whether Apple can successfully cope with these challenges and regain market growth momentum in the future will become the focus of the industry.

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