The iPhone was wiped out by the smartphone market crisis

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In 2022, the smartphone market collapsed. After months of resistance, the iPhone was overtaken by the economic crisis in the last quarter of the year…



According to figures from IDC, iPhone sales fell sharply in the last quarter of 2022. Apple only sold during that period 72.3 million iPhones worldwide, compared to 85 million devices last year. From one year to the next, the American brand sold 14.9% fewer smartphones.

Generally it is the last trimester most lucrative time of the year from Apple. Indeed, the brand benefits from the release of its new iPhones, around October, and the end of the year celebrations. During the winter festivities, many of the brand’s new products can be found under the Christmas trees.

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Market decline and production problems


Like its Android competitors, Apple has been hit by the decline in the smartphone market. According to IDC, there are smartphone shipments worldwide collapsed by 18.3% for the previous quarter in a time frame of one year. This is the largest quarterly decline ever recorded by the mobile phone market.

Inflation and a decline in purchasing power are significantly discouraging consumers from investing in a new phone… especially as manufacturer prices rise again. Total sales for 2022 confirm buyer disinterest. Manufacturers sold just 1.21 billion phones in a year. That is the first time since 2013 that brands ship so few smartphones per year.

“This difficult end of the year seriously jeopardizes the 2.8% recovery expected for 2023”notes IDC, which estimates that the recovery could ultimately wait until the end of the year.
At the same time, Apple met major production problems. Foxconn, one of China’s leading iPhone manufacturers, was forced to close for several days. The harsh confinement decreed by Beijing was accompanied by violent riots in Zhengzhou, nicknamed the City of the iPhone. Despite a quick recovery, Apple picked up an iPhone 14 shortage. The most expensive and most popular models, the iPhone 14 Pro and Pro Max, were out of stock for a long time… contributing to the drop in sales.

“Even Apple, seemingly immune until now, has suffered a setback”says Nabilla Popal, director of research at IDC.
Despite the scarcity and the recession, Apple succeeded maintain market share. The California giant still holds 18.8%, compared to 17.3% in 2021. Clearly, Android smartphone makers have not nibbled on iPhone shares. All brands suffered from the recession. De facto, Apple remains number 2 in the world in the sector, just behind the unbeatable Samsung.

smartphone market

The market shares of the 5 smartphone brands in 2022. © IDC
Apple is in the middle of the crisis… but not too much


iPhone sales figures suggest that Apple is gradual caught in the recession. According to financial observers, the Cupertino Group should also present its financial results for the fourth quarter of 2022 at half-mast. To set the stage, Tim Cook and Apple’s chief financial officer, Lucas Maestri, warned investors about a phase of sales slowdown.

So far, however, the company has remained impervious to the economic crisis, which began last year in the wake of the pandemic. The Cupertino giant has even announced it book quarterly results in October. Building on the summer success of the iPhone 13 and its new Macs, Apple posted $20.7 billion in profit and record $90 billion in sales.

Thanks to continued solid sales, a colossal cash reserve and prudent hiring during the health crisis, Apple should avoid mass layoffs to lower its costs. The company would be happy to review recruitment in the coming months. Tech giants such as Meta, Microsoft, Amazon and Google, on the other hand, have shrunk considerably. More than 55,000 people have been laid off this month.

Source :

IDC
 
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