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Apple's iPhone sales dropped eight percent in the first quarter of 2020, according to new data shared today by Gartner.

iphonesalesgartnerq12020.png

Apple sold an estimated 40.92 million smartphones during the quarter, a 3.7 million drop from the 44.57 million that it sold in the first quarter of 2019.

Other smartphone manufacturers saw much steeper drops in sales. Samsung's sales, for example, were down 22.7 percent, and Huawei's sales were down 27.3 percent. Xiaomi was the only smartphone manufacturer that saw a slight increase in sales, with the overall smartphone market down 20.2 percent.
"The coronavirus pandemic caused the global smartphone market to experience its worst decline ever," said Anshul Gupta, senior research analyst at Gartner. "Most of the leading Chinese manufacturers and Apple were severely impacted by the temporary closures of their factories in China and reduced consumer spending due to the global shelter-in-place."
Apple in early February was forced to close all of its retail stores in China, and later in the year, the rest of its stores across the world were shuttered amid the global pandemic.

Stores in China started reopening in late February, and by mid-March, all retail locations in China were operational, just in time for Apple's other stores to shut down on March 14.

Apple has been slowly reopening its stores outside of China since the beginning of May and while not all locations have reopened, close to 100 stores in the U.S are open for repairs and pickups, plus stores in countries like Australia, Canada, Italy, and Germany have reopened.
"Apple had a strong start to the year thanks to its new product line up that saw strong momentum globally. If COVID-19 did not happen, the vendor would have likely seen its iPhone sales reached record level in the quarter. Supply chain disruptions and declining consumer spending put a halt to this positive trend in February," said Annette Zimmermann, research vice president at Gartner. "Apple's ability to serve clients via its online stores and its production returning to near normal levels at the end of March helped recover some of the early positive momentum."
Apple in April shared its earnings results for the second fiscal quarter of 2020, which corresponds to the first calendar quarter of the year. Apple posted revenue of $58.5 billion, up just slightly from the $58 billion in revenue it brought in during the second fiscal quarter of 2019.

Article Link: Global iPhone Sales Dropped an Estimated 8% in Q1 2020, Overall Smartphone Sales Down 20%
 
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magicschoolbus

macrumors 68010
May 27, 2014
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Sales will be down across the board for every company so it's really no surprise. I also think we have reached peak smartphone. Not really anywhere to go from where we are at other then fancy cameras and faster processors.
 
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Camarillo Brillo

macrumors 6502
Dec 6, 2019
400
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Not surprised fewer want to buy a new $400-$1200 smartphone when they’re all sitting at home with nobody to show it off to. Especially if you lost your job and need to save money. The fast upgrade cycle thing is definitely about the status symbol of having the newest and most expensive. It’s like jewelry. There’s really no reason to buy a new iPhone more often than once every 3-4 years unless you break it or lose it. Still on iPhone 7 and sticking with it for a while longer, though I planned to buy the SE before the pandemic hit. Maybe later this year, or next year.
 
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lkrupp

macrumors 65816
Jul 24, 2004
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Oh no. How will this multibillion dollar company cope?

How will this trillion dollar company cope? There, I fixed it for you.
[automerge]1591053291[/automerge]
Not surprised fewer want to buy a new $400-$1200 smartphone when they’re all sitting at home with nobody to show it off to. Especially if you lost your job and need to save money. The fast upgrade cycle thing is definitely about the status symbol of having the newest and most expensive. It’s like jewelry. There’s really no reason to buy a new iPhone more often than once every 3-4 years unless you break it or lose it. Still on iPhone 7 and sticking with it for a while longer, though I planned to buy the SE before the pandemic hit. Maybe later this year, or next year.

iPhone sales were down 8% while the overall market was down 20%. That means people are still buying $400-$1200 smartphones while the cheap end of the market collapsed.
 
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Piggie

macrumors G3
Feb 23, 2010
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Sales will be down across the board for every company so it's really no surprise. I also think we have reached peak smartphone. Not really anywhere to go from where we are at other then fancy cameras and faster processors.

The great thing for all customers will be, as smartphones have in some places and are in other areas reaching a point where almost all the componants are getting so good there is less and less difference between the very best and simply good.
And mass production continues this.
We shall see, and it's happening now as we can see. The reason for £1000+ phones, which is nuts when you think about it for a moment is going to decrease year on year.

Look at what say a $100 phone from today is like against the very best top of the line iPhone from perhaps 5 years ago.
Now imagine another 5 or 10, or even 20 years more advancement onto that $100 phone.

Just like DVD Players and Large Screen TV's, the prices will go so low and quality at this low price will be excellent for most people, leaving only the few enthusiasts to go for the latest high end model, as no normal person will have any need for what the high end model offers.

Of course Apple knows this and are banking on AR and VR as the next iPhone
Will it work?
I'm sure technically it will get cracked soon.
And it's going to be pretty poor to start with.
But let's have the 1st headset launch, and then, throw another 10-15 years development onto it, and we'll probably be there.

I feel the biggest question is, will normal everyday family members, mum, dad ect, actually want to wear some glasses for a long long time?
If you could jump 10 years then yes I'm sure they would as by then it would be an instant win.
But you need people to buy them by the millions, even through the early, not that great models.
And I'd suggest that's the largest challenge.

It's fine to expect someone to carry an early poor smartphone as people carried little devices in their hands anyway, but glasses?
It's going to be a interesting time.
 
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calzon65

macrumors 6502a
Jul 16, 2008
918
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Not surprised fewer want to buy a new $400-$1200 smartphone when they’re all sitting at home with nobody to show it off to. Especially if you lost your job and need to save money. The fast upgrade cycle thing is definitely about the status symbol of having the newest and most expensive. It’s like jewelry. There’s really no reason to buy a new iPhone more often than once every 3-4 years unless you break it or lose it. Still on iPhone 7 and sticking with it for a while longer, though I planned to buy the SE before the pandemic hit. Maybe later this year, or next year.

You are right, especially for phones closer to the $1,000+ price. I kept my 6s for years and recently purchased the new 2020 SE. I'm thrilled with the new SE, it's a great form factor (size) and a fantastic value; I think it will be a big hit for Apple.
 
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a m u n

macrumors member
Aug 14, 2018
87
407
I’m surprised how close the iPhone is to being the top selling phone worldwide (I believe it is already is #1 in the US)

Apple is #1 worldwide for years in the market premium. :)

Samsung, Xiaomi and Huawei sells a lot of mid range phone with price between 150$ — 350$.
 
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sirozha

macrumors 68000
Jan 4, 2008
1,525
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Sales will be down across the board for every company so it's really no surprise. I also think we have reached peak smartphone. Not really anywhere to go from where we are at other then fancy cameras and faster processors.
I think the only differentiating factor will be cameras and possibly VR.
 
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uroshnor

macrumors member
Nov 4, 2015
63
69
Ok I'll bite. This isn't data. Its guesswork dressed up in the veneer of a report, that's a "hook" to get you to buy more guesswork. None of the vendors reports actual unit sales any more, and when they did, it wasn't unusual for Gartner etc to be out by huge percentages 2x or 3x in some cases compared to the actual "phone in a customer's hand" numbers versus "phones in a distribution warehouse" number.
 
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NickName99

macrumors 6502a
Nov 8, 2018
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Who said anything about the USA? These are *world wide* sales figures. It might surprise you to learn that the USA is not the world you know.

I was making fun of those companies for failing to have a presence in the USA market. It looks like you misunderstood my point. Maybe English isn’t your first language?
 
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Michael Scrip

macrumors 603
Mar 4, 2011
6,375
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NC
Ok I'll bite. This isn't data. Its guesswork dressed up in the veneer of a report, that's a "hook" to get you to buy more guesswork. None of the vendors reports actual unit sales any more, and when they did, it wasn't unusual for Gartner etc to be out by huge percentages 2x or 3x in some cases compared to the actual "phone in a customer's hand" numbers versus "phones in a distribution warehouse" number.

Haha... very true.

To the companies who actually buy these reports... what exactly do they do with them?
 
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fairuz

macrumors 68020
Aug 27, 2017
2,486
2,589
Silicon Valley
It's corona time. Can't imagine anything less exciting than buying a new smartphone. My iPhone 6 was critically damaged, and now I've got an iPhone 5. Don't even care.

Most people aren't like me, but still, I can't see even them buying new phones.
 
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Baymowe335

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Oct 6, 2017
6,640
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It's corona time. Can't imagine anything less exciting than buying a new smartphone. My iPhone 6 was critically damaged, and now I've got an iPhone 5. Don't even care.

Most people aren't like me, but still, I can't see even them buying new phones.
There are many causes to get upset about other than this virus...you just haven’t heard about them endlessly.

Point is, acting like THIS, THIS is the thing that changes your whole mindset on life is kind of absurd. If you cared before, why don’t you care now? Because of a respiratory virus?
 
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Michael Scrip

macrumors 603
Mar 4, 2011
6,375
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It's corona time. Can't imagine anything less exciting than buying a new smartphone. My iPhone 6 was critically damaged, and now I've got an iPhone 5. Don't even care.

Most people aren't like me, but still, I can't see even them buying new phones.

There were almost 300 million smartphones shipped/sold/whatever over the last three months.

That's still a lot of movement during CoronaTime. :p
 
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Gasu E.

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Mar 20, 2004
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Sales will be down across the board for every company so it's really no surprise. I also think we have reached peak smartphone. Not really anywhere to go from where we are at other then fancy cameras and faster processors.

Yes, and no. I like the functionality that a smart phone provides; but I don't like to have to stuff this clunky device in my pocket, take it out, put it back, get covid 19 germs on it, put it down, forget where I put it down, run around my house when I hear it ringing off in the distance. I'm sure there are people who will say they have a whole process they've established for managing this, which misses the point-- I don't want to be forced to re-build my life around a device. So, I think there's a way to go. The phone form factor isn't there yet, which undoubtedly is why Apple is all-in on wearables.
 
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