Apple Inc. AAPL has set a new sales record for its iPhone during the third quarter of 2024, coinciding with a broader recovery in the global smartphone market.
What Happened: According to Canalys, Apple’s iPhone sales were narrowly edged out by Samsung Electronics Co. Ltd. SSNLF, with both tech giants capturing an 18% market share.
Notably, Samsung’s share dipped by 3% compared to the previous year, while Apple saw a 1% increase.
Samsung launched its latest smartphones in July, while Apple’s iPhone 16 series hit the market on Sept. 9, just weeks before the quarter ended. Despite the limited time, Apple’s sales performance was robust, likely benefiting from the timing.
Analysts attribute Apple’s success in Q3 to the sustained demand for the iPhone 15 series and older models. Canalys anticipates that the iPhone 16 series will further enhance Apple’s performance into 2025, supported by Apple Intelligence.
Overall, the global smartphone market experienced a 5% year-over-year growth in Q3 2024, marking the fourth consecutive quarter of expansion, according to Canalys.
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Why It Matters: The strong performance of Apple’s iPhone 16 series comes amid mixed signals from analysts. On September 22, Wedbush analyst Dan Ives highlighted a promising start for the iPhone 16, predicting an upgrade cycle of over 90 million units, an increase from the iPhone 15.
However, Barclays analyst Tim Long warned of potential headwinds, citing weaker demand and macroeconomic pressures. He noted possible early production cuts, with Apple potentially reducing key semiconductor components by 3 million units for the December quarter.
Despite these challenges, KeyBanc analyst Brandon Nispel observed that demand for the iPhone 16 Pro and Max models remained healthy, driven by camera upgrades.
However, base models lagged behind expectations. As Apple navigates these dynamics, its ability to maintain momentum will be crucial in sustaining its market position.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Apple
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