Difficulties may increase for American devices maker Apple. There may be a decline in the shipments of the company’s iPhone 15 series and the upcoming iPhone 16 series launched last year. Demand for Apple’s smartphones is declining in China. The iPhone 16 series can be launched in the second half of this year.
Ming-Chi Kuo, analyst at TF Securities International, said in a post on Medium that his supply chain survey indicates that Apple has reduced the shipments of its critical semiconductor components by about 20 crore units. This is a decline of about 15 percent compared to last year. This analyst claims that Apple’s iPhone 15 series shipments will decline by about 10 percent in the first half of this year. Shipments of the iPhone 16 series may decline by about 15 percent in the second half of this year.
Kuo has said that there are some major changes behind the decline in iPhone shipments. These include increasing popularity of foldable smartphones and premium smartphones Includes integration of generative AI. Apart from the strictness of the government in China, Apple is also facing challenges like competition from smartphone companies like Huawei. China is the third largest market for this.
In China, government agencies and some companies have banned their employees from using Apple devices. Earlier, the US government had imposed restrictions on some Chinese apps due to security reasons. The business of China’s largest consumer electronics company Huawei in America was also affected by the restrictions. Data from market research firm IDC shows Huawei’s shipments grew 36.2 percent in the fourth quarter of last year. It has become the fourth largest smartphone company in China. However, in the entire last year, Apple has sold the most smartphones in China with 17.3 percent market share, leaving Vivo behind. Analysts estimate that the company’s sales may be affected this year. Apple’s premium smartphones are sold more in China. In this segment, it is facing tough competition from Chinese smartphone makers. Apple had reduced the prices of iPhones earlier this month to increase sales in China.