Apple Inc. (NASDAQ:AAPL)’s iPhone Shipments May Have Shrunk 44% In 1Q

How many iPhone units did Apple Inc. (NASDAQ:AAPL) ship in the March 2016 quarter? The company is set to come clean on its March quarter performance on April 25, but a research firm that tracks the performance of smartphone vendors claims iPhone sales declined sharply in the March quarter.

According to TrendForce, Apple Inc. (NASDAQ:AAPL) shipped only 42 million iPhones in 1Q2016 (which is actually its F2Q2016). If it’s true Apple shipped 42 million iPhones in the March quarter, it would suggest iPhone shipments shrank 43.8% sequentially. Moreover, it would suggest that iPhone sales contracted by over 10 million units from a year ago quarter.

Weak demand for iPhone 6S

TrendForce puts blame on iPhone 6S for Apple’s weak iPhone sales in the March quarter. The fact that the iPhone 6S model didn’t have many exciting features meant that demand for it remained doused throughout the quarter.

Market share contracts

As such, TrendForce says Apple’s smartphone market share declined sharply from 20.9% in 4Q2015 to just 14.4% in 1Q2016. The company held 19.9% share of the smartphone market in 1Q2015.

Competition in midrange market

Although Apple Inc. (NASDAQ:AAPL) is hoping that the iPhone SE might help it fuel iPhone sales and gain more market share, TrendForce sees a tough contest ahead. The iPhone SE is aimed at the midrange market segment, but competition is intense in that segment as Apple’s iPhone SE will have to battle for market share against Chinese brands such as Huawei and Xiaomi, which are aggressively pushing into the emerging markets. Apple’s iPhone SE has a starting price of $400.

Annual shipment

Because of Apple Inc. (NASDAQ:AAPL)’s weak start to 2016, TrendForce predicts the company will only ship 213 million iPhone this year, 10% down from the units shipped in the previous year.

Samsung fares well

As Apple Inc. (NASDAQ:AAPL) struggled in 1Q2016, Samsung fared well, selling 81 million units in the quarter, suggesting 2.5% improvement from the previous quarter. According to TrendForce, Samsung’s gains in the quarter were fueled by Galaxy S7 and S7 Edge smartphones.

Samsung topped the chart of smartphone vendors in 1Q with 27.8% share of the market.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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