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Caleb Myers
Caleb Myers

IDC Estimates Apple IPhone Sales In China Fell 20 Percent YOY In 2018 Holiday Quarter

Apple's worldwide smartphone shipments were down 30.2 percent from 52.2 million iPhones shipped in the first quarter of 2018. The decline in sales led to Apple losing the number two worldwide smartphone vendor spot to Huawei. In Q1 2019, Huawei shipped an estimated 59.1 million smartphones.

IDC estimates Apple iPhone sales in China fell 20 percent YOY in 2018 holiday quarter

Apple was the number two smartphone vendor in Q4 2018 due to stronger holiday quarter sales, but fell behind this quarter. Huawei saw significant growth in China according to earlier numbers from Canalys, a market where Apple is struggling.

In the 4th quarter of 2018, the smartphone replacement cycle continues to increase: the shortage of attractive innovative solutions affects, which also led to a decrease in the average sales price by two percent, to $384. In Russia, over the same period, the average price tag of a smartphone increased by 9 percent and in 2018 amounted to $250.

The Chinese market is the main consumer in the global smartphone market, in addition, it is the home market for Chinese brands that have reached the global level. 40 percent of Chinese brand smartphones in 2018 were purchased outside of China (31 percent in 2016). The decline in demand in China in the 4th quarter of 2018 (minus 19 percent year-on-year) by volume (27 percent of sales volume) had a significant impact on global indicators. Continued demand growth in developing countries in Asia * (plus 13 percent yoy) and Central and Eastern Europe (plus three percent yoy) only partially offset the decline in China in Q4 2018.

Figure 2 shows a more irregular pattern, with most quarters coming in around $500 million in accruals, but one or two per year coming in at double or even triple that total. Usually, it's the fourth quarter that gets the outsized accruals, and that of course corresponds to the holiday season when iPhone sales soar. But note than in both calendar 2018 and 2019, it was the third quarter that saw the highest totals.

In fiscal 2020, AppleCare sales exceeded three percent of revenue. In fiscal 2021, AppleCare sales fell just below three percent of revenue. Over the long term, the average rate is 3.6%, and it's 3.3% in the iPhone era (since 2007). So although the percentage rate is up from the doldrums of fiscal 2018 and 2019, it's still a bit below average.

Where on one hand, smartphone companies are jotting down their line of strategies to compete in the tablet market, Gartner is out with its Q3 results which may upset the decision-making bodies in the company boardrooms. The report estimates that Tablet worldwide sales will reach a figure of 229 million, a 9.5 percent of the total worldwide sales of devices in 2014. This accounts for an 11 percent increase from 207 million tablet units sold during the same quarter in 2013, but its a very dismal figure when compared to 2013 when tablet sales grew 55 percent.


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