Apple is gradually losing its grip in the smartphone market. It slipped to fourth place in a list of the world’s top smartphone makers after a record drop in iPhone sales.
Apple shares fell by 2% after the US president announced the 10% tariff on the Chinese goods entering the US. The smartphone maker has been hit hard by the unending tariffs. The increasing cost of the gadget leads to a plummet in sales globally. Loyal users hold on to older models for too long because they are hesitant to splurge a fortune on a newer model.
Current statistics shows that Apple now sits behind Samsung, Huawei, and Oppo, a brand from China that is less popular in the West.
Despite Huawei recent troubles with the US, the company still managed to sell over 58 million phones in the first half of 2019. According to the IHS data, Apple shipped 35.3 million iPhones, capturing 11% of the smartphone market. Oppo shipped 36.2 million smart phones, giving it a slight margin above it. Samsung and Huawei shipped 75.1 and 58.7 respectively.
Sales of iPhones plunged by $26b in the last quarter. The product now accounts for less than half of Apple’s overall revenue. The company has seen more growth with other products such as the Apple watch.
However, Apple is reluctant to produce less expensive phone to accommodate or feed a wider range of audience in the highly competitive industry. Analysts believe that users hold on to older models for a longer period because of the high cost and sometimes move on to get an alternative for a more affordable price. In all, Apple is the sufferer as it continues in fall in market relevance and stock market. It has continued to miss out on key audience and has allowed its rivals like Samsung and embattled Huawei to make more gains.
Despite the storm that Huawei had faced, it managed to sail through the competitive market, making huge sales in China. Perhaps, the natives do well to promote their own. The Trump led administration had pressured American firms like Google, Facebook and Twitter to withhold license from Huawei. Regardless of this setback, the tech company maintained second place in the list of world’s top smartphone makers.