In what is not a good sign for Samsung who are looking for 10% smartphone growth this year, analysts have claimed that Apple is facing a significant fall in iPhone sales this year, a directionm that could affect most smartphone manufacturers.
Influential technology analyst Ming-Chi Kuo warned that the company is expecting lower demand for iPhones in 2024 a claim that saw Apple shares slump over 2%.
The tech giant lowered its 2024 iPhone shipments of key semiconductor components to about 200 million units, the analyst wrote in a report, citing his latest supply chain survey.
That suggests shipments of the iPhone 15 and upcoming iPhone 16 will decline by 10% to 15%, he said.
Samsung Electronics is pinning its hopes for a mobile revival on artificial intelligence with the Company initially claiming that they were looking for 10% growth this year.
Management at CES claimed that AI will lift the global smartphone market back to growth and Samsung expects to outperform that with sales of its latest flagship devices, mobile chief TM Roh said in an interview.
China is a particular area of concern for both Companies as Huawei grabs 42% of the local Chinese market.
Bloomberg claims that Apple’s weekly shipments in the country have declined by 30% to 40% in recent weeks compared with the year-earlier period, and Kuo expects this trend to continue.
As soon as the report was released Apple shares fell as low as $187.87 in New York, marking the biggest intraday drop in two weeks.
The company reports results for its holiday quarter later this week, and investors are looking for signs that demand is holding up — especially for the iPhone, Apple’s biggest moneymaker.
The iPhone was the top-selling smartphone in the USA for the first-time last year, according to market tracker IDC.
Apple’s overall revenue is expected to up just 1% in the fiscal first quarter, which ran through December.
