iPhone sales drop for the first time since it was released. Apple on Tuesday reported its first ever drop in iPhone sales, as the shipments decline for the first time.

Apple Sales Drop, Samsung Rules Market : IDC Report

Apple on Tuesday reported its first ever drop in iPhone sales. Company reported a nearly 13% fall in quarterly sales which is the first time, the revenue of world’s most profitable company has declined in 13 years.

Apple has announced its customary earning calls for Q2 2016 which is from January through March 2016. Apple’s earnings touched $50.6 billion with a quarterly net profit of $10.5 Billion. Last year, Apple made revenue of $58 billion and $13.6 billion profit during the same period.

Second quarter earnings of Apple have erased the position of the Apple as the world’s largest business and now it is on second spot. This is due to iPhone’s poor sales. During past quarter sales, Apple sold 51.2 million iPhones, 10.3 million iPads and 4 million Macs according to the sources which is again down on the same quarter from 2015.

According to report released by IDC [International Data Corporation], the strong market is losing its glimmer. About 334.9 million smartphones were shipped from across the world in the last quarter while as 334.3 million smartphones were shipped in the first quarter of 2015 which is showing minor increase in shipments. Both Apple and Samsung have witnessed decline in sales.

Amid Apple’s dip in sales for the first time, Chinese smartphone brands, Oppo and Vivo have attained a spot among the top five smartphone brands, Xiaomi and Lenovo lost their spot among top five smartphone brands. Oppo is at the third spot whereas Vivo is at the fifth spot.

“Outside of China, many of these brands are virtually unknown and the ability of these rapidly growing Chinese vendors to gain entry into mature markets such as the United States and Western Europe will be essential if they have aspirations of catching Apple or Samsung at the top,” said Anthony Scarsella, Research Manager with IDC’s Mobile Phone team.

“Huawei has proven that it can sell increasingly premium devices. In China, Huawei is already recognized as a premium brand, but it is now going toe-to-toe on build quality with premium devices like the Nexus 6P that are available worldwide. While Huawei is furthest along in terms of international recognition, selling equally impressive volumes outside of China remains a challenge for many of these brands, whether it is Xiaomi, Lenovo, OPPO, or Vivo. Their ability to drive local growth no longer applies when it comes to international expansion, where premium branding quickly turns to price competition.”

Samsung witnessed 0.6 percent over year dip in shipments worldwide. Huawei acquired third spot among top five smartphone brands, due to its strong presence outside China which helped the company to acquire the number 4 position in 1Q16. Huawei’s global shipments jumped from 17.4 million units in 1Q15 to 27.5 million quarter for year to year growth of 58.4%. The emerging smartphone brand, Oppo is focused on gaining a stronghold in the Asian market while as Vivo is eyeing towards its domestic market.


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