Apple sold 13.8% fewer iPhones during the second quarter; Huawei sold 16.5% more handsets

Apple sold 13.8% fewer iPhones during the second quarter; Huawei sold 16.5% more handsets
The global smartphone market continued to languish during the second quarter according to the latest report from Gartner. 367.9 million units were sold to end-users during the three month period from April through June, down 1.7% from the 374.3 million units rung up during the same period last year. The analytical firm's senior research director Anshul Gupta notes that high-end models have experienced a harsher slow down in demand than low and mid-range handsets. To generate upgrades, Gupta says that manufacturers are trying things like bezel-less displays, multi-camera setups in back and front and larger capacity batteries.

Samsung remains King of the smartphone world after selling 75.11 million handsets during the quarter. The company's market share rose year-over-year from 19.3% to 20.4%. Huawei's sell-through of 58.06 million phones gave it a 15.8% slice of the global smartphone pie. The company had hoped to be on top of this list by the fourth quarter, but its placement on the U.S. Entity List makes that a long shot. Huawei is not allowed to access its U.S. supply chain, although U.S. suppliers have a second 90-day window to help the company service its existing customers and update certain smartphone models. Despite the ban, Huawei sold 16.5% more units during the period, compared to the same quarter last year.

Apple iPhone sales declined 13.8% during the quarter on a year-over-year basis

Gartner's data shows Apple selling 38.52 million iPhones during the quarter, down 13.9% from the 44.72 million units it sold during last year's second quarter. The company no longer reveals this data during its quarterly earnings report but does release a breakdown of revenue. For the calendar second quarter (Apple's fiscal third-quarter), iPhone revenue declined 12% and represented less than 50% of the company's total revenue for the first time since 2012. According to Gartner, the iPhone accounted for 10.5% of smartphone sales during the three-month period.

If Apple continues to struggle with iPhone sales, it will soon be surpassed by Xiaomi. The latter sold 33.19 million phones globally from April through June, representing 9% of the market. Oppo finished fifth after selling 28.11 million phones in the quarter, giving it 7.6% of the smartphone market.

The struggling smartphone industry is a worldwide phenomenon. Gartner points out that of the top five smartphone markets in the world, only China and Brazil showed growth on an annual basis. China remains the top market in the world for connected handsets with sales of 101 million units during the quarter, a small gain of 0.5% Sales in the country benefitted from lower prices as vendors looked to get rid of their inventories of 4G LTE phones with more 5G models made available. The 10.8 million smartphones sold in Brazil from April through June was 1.8% more than the number rung up in the country during the same time period last year. In India, the world's second largest smartphone market, 35.7 million phones were sold during the quarter. That was a 2.3% decline on an annual basis as fewer consumers in the country decided to upgrade from a feature phone to a smartphone.

Gartner says that smartphone sales will remain weak for the rest of the year and that a total of 1.5 billion handsets will be sold to end-users during 2019.



1. LawnBoy

Posts: 203; Member since: Feb 23, 2019

On the one hand, iPhones are inferior products now. That said, Apple as a company is shifting to more lucrative markets, i.e. services, streaming and content.

4. lyndon420

Posts: 6897; Member since: Jul 11, 2012

Apple shifting focus to services is definitely a needed move. And they're working hard on their mapping effort, so they'll start pulling in the all the user info/data they'll need to stay afloat (until they can utilize Intel enough along with maybe their own foundry - like Samsung does).

8. mackan84

Posts: 647; Member since: Feb 13, 2014

Just a FYI; the smartphone-market is on a steady decline. The smartest move for anyone is to move to software/services. Just because people buy smartphones less often doesn’t mean they stop using them...

11. Papa_Ji

Posts: 885; Member since: Jun 27, 2016

Overall sale is almost flat... Its only the iPhone sales which are declining. Let the trend continue for 1-2 more years. Apple will be out of top 10....then the so called smartest move to software/service will be of no use. Apple services are growing only because there iPhone trap.

13. mackan84

Posts: 647; Member since: Feb 13, 2014

This is like the seventh consecutive quarter of decline... Q1 -6.6% Q2 -1.7% = -8.3% so far this year. Last year it went down a total of -4.1%. As long as people use their iPhones Apple is probably going to be happy consumers make that services grow.

15. oldskool50 unregistered

All the services in the world, isn't gonna pull in as much as hardware.

23. mackan84

Posts: 647; Member since: Feb 13, 2014

No not as long as we talk about premium-priced hardware. If we take a look at the profit from all these manufacturers they still don’t come near Apple, yes Apple is to expensive but some of the rest also have premium phones they earn more on. They haven’t reached those consumers as Apple has done and those consumers are no longer as hungry for the latest as they once were. It’s great that all of these manufacturers have cheap options for those consumers but they won’t give them much more profit. Different strategy as long as Huawei and Samsung can’t earn anything significant on software, google will be happy tho.

30. mrochester

Posts: 1040; Member since: Aug 17, 2014

Profit margins on services is huge in comparison to hardware.

14. User123456789

Posts: 1200; Member since: Feb 22, 2019

To be out of top 10, sales need to be below 10 million units.

9. sgodsell

Posts: 7605; Member since: Mar 16, 2013

Gartner Q2 2019 - Samsung 75.1 million - Huawei 58 million - Apple 38.5 million - Xiaomi 33.1 million - OPPO 28.1 million - Others 134.9 million IDC Q2 2019 shipments - Samsung 75.5 million - Huawei 58.7 million - Apple 33.8 million - Xiaomi 32.3 million - OPPO 29.5 million - Others 103.4 million Make of it what you will between the two companies.

16. oldskool50 unregistered

Apple continues tonsell.50% less phones than Apple per quarter. If the Christmas quarter sees a similar drop in sales, done. I stand by my claim, Tim Cook will be looking for a job by 2021. Apple priced themselves into a pickle. What was that real luxury brand that made phones? It started with a V. See where they ended. Apple pretending to be luxury is goj g the ssme. If Apple had kept the iPhone at $650 with the plus at 750 and introduced a pro model for $900, that would be ok. Because the cheaper options will sell more anyways. But all 3 models are priced above $1000USD outside the US. Apple is done and I cant wait. This is karma for suing people for no reason. Now all the companies they have sied or screwed over like, Samsung and others will thrive, while Apple dies. Wonder what the fanboys are gonna be saying. At this rate by 2022, iPhone sales will be at or below 100M per year. What will the fans have to brag about when the top 5 selling phones will all be from Android OEMs? I bet Midan wont be talking about sells then.

28. midan

Posts: 3131; Member since: Oct 09, 2017

"Apple is done and I cant wait" You can't, that's true! You are dead before Apple is done ;) Sorry to tell the truth.. I just leave this new article here: "iPhone Users Have Most Brand Loyalty "90.5 percent of iPhone users intended to buy another one when they upgraded. 79 percent of them were happy with their brand of phone. They saw no reason to switch or preferred to say with what they knew. Less than a quarter, 21 percent, of Apple smartphone users said they could be tempted to switch to Android if they were not so tied into the company’s ecosystem. Less Than 10 Percent Want to Switch In total, just 9.5 percent of iPhone users said they intended to switch."

29. midan

Posts: 3131; Member since: Oct 09, 2017

That loaylty research is from this month survey, you see when iPhone users finally upgrade they buy another iPhone. So like always the stuff coming from your mouth is completely out from the reality.

32. wickedwilly

Posts: 754; Member since: Sep 19, 2018

Why do you make these claims but do not include the source? It seems to me that there has been a net exodus from IOS and new users are flocking to Android phones. Apple have been releasing below par phones for many generations now, IOS continues to be a follower of trends set by Android OEMs and yet increased prices. This may well not be the end of the iPhone or Apple but it is a decline caused by poor products and lack of innovation.

40. midan

Posts: 3131; Member since: Oct 09, 2017

"This may well not be the end of the iPhone or Apple but it is a decline caused by poor products and lack of innovation." Galaxy S10 is selling badly, poor product and lack of innovation, i guess? ;) Reality decline in sales comes from too good products. I'm using X and if i wouldn't be Interested about camera, i wouldn't upgrade my phone this year.

31. mrochester

Posts: 1040; Member since: Aug 17, 2014

Why would you want a world where the only choice is android?

33. Deadeye

Posts: 131; Member since: Jul 26, 2019

I wonder what´s the use of shifting to services when your market penetration is shrinking.

46. mackan84

Posts: 647; Member since: Feb 13, 2014

Well 1,4 billion iOS-users spending $9.99 a month is a pretty ok deal?

47. mootu

Posts: 1541; Member since: Mar 16, 2017

There is nowhere near 1.4 billion IOS users. That number is for active devices and with some people owning 5 or 6 devices the user base number falls drasticly. Just remember a user with a number of devices will only buy one apple music subscription etc and familys tend to buy a family plan which reduces the numbers even more.

36. TheOracle1

Posts: 2340; Member since: May 04, 2015

The Apple faithful are busy collecting their turd polish to explain this one away.

2. tedkord

Posts: 17481; Member since: Jun 17, 2009

Apple is doomed! Follow the Galactica!

3. Alcyone

Posts: 584; Member since: May 10, 2018

I can't mention any particular companies, it may offend some people. Seevices for some companies will need to be the future. I stopped using ios (work) and strictly use android. I believe all companies need to adapt or evolve.. One, adapted. One, is in the process of evolving. Project Fuchsia is the future. Software wise, as it will drive hardware to do so much more.

6. blingblingthing

Posts: 982; Member since: Oct 23, 2012

Sales dying with with those fallacies. iPhones best cameras, debunked. iPhones are innovative, debunked. iPhones have best screens, debunked Only think left is this Eco-system crap.

10. sgodsell

Posts: 7605; Member since: Mar 16, 2013

They are going to do more this year by giving it the pro name extension, so that naturally makes it better, right?

34. Deadeye

Posts: 131; Member since: Jul 26, 2019

It certainly does make it better, but only for their brainwashed customers.

41. midan

Posts: 3131; Member since: Oct 09, 2017

Why so obsessed and insecure?

12. CreeDiddy

Posts: 2276; Member since: Nov 04, 2011

I crack up at these comments. Being a long time iPhone user, I love to see competitors and competition between the smartphone market. Apple has reached a glass ceiling. However, they will still continue to sell 200 million phones a year. One quarter doesn’t justify their demise. I see the confidence of those that own Android phones and automatically think they are winning. Apple’s branding allows them to continue to sell phones and most importantly “services”. What’s happening to Huawei reminds me of the ballooned mortgages 12 years ago. An amazing entrance, but a quick exit. Huawei has no loyalty or long term branding to keep customers. The reason why, is because they are married to Android. Android is about choice and not loyalty. How can business build their subscriber base with no investment of services. This is where they fall short in a 5 year span. You can’t expect to release a phone that does the same as last year. This is what Apple found out. Slapping a higher price with minimal upgrade features leads to slow “handset” sales. However, this will push Apple to make their phones a must buy year to year. Right now phones are good for 3-4 years. No need to upgrade if you are an enthusiast. Same goes for Samsung and the rest of the pack.

17. oldskool50 unregistered

You must be blind and dumb. The last fiscal year, iPhone sales drop to about 190M. They have already fallen below 200M. At this rate, the will be below 150M by this time nest year. Which means the year after that they will be very close too 100-150M and falling. It's over bruh. Ine thing is for sure, Samsung is the sales king have sold more phone in one year than even Nokia at 434M. And even now they still selling 75-80M per quarter. Apple reached 75M maybe once or twice. You are delusional son. Pinch yourself and the hell up.

27. scarface21173

Posts: 702; Member since: Aug 17, 2014

I said a while back, they would level off at 150 million.

18. oldskool50 unregistered

It doesnt matter how much theybuograde the phone. $1000 is still to much. Again you show ignorance on purpose. The S10 and Note have had more features vs the iPhone forever. Sales for those are dropping more since crossing $1000. If Samsung did a 180 and drop the S and Note by $300 each, they could kill Apple off. But Samsung is busy being stupid, just like how you sound.

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