IHS Markit: Apple shipped 43.8M iPhones in Q1, down 16% from 2018

Contradicting controversial smartphone shipment estimates from market research firm IDC, IHS Markit on Thursday released its own set of preliminary figures that fall in line with wider industry expectations. At least as far as Apple is concerned.

Earlier this week, IDC released estimates claiming Apple shipped 36.4 million iPhones in the first calendar quarter of 2019, down a shocking 30.2% year over year.

The report was subsequently panned by independent analysts and industry insiders including Neil Cybart, who characterized the results as "embarrassing" for IDC. Chinese smartphone maker Xiaomi also took issue with the data and on Thursday issued a statement saying IDC's estimates were at least 2.5 million units off.

Amid the hubbub, IHS Markit released its own findings, which are more conservative than those issued by fellow market research firms IDC and Canalys.

IHS estimates Apple shipped 43.8 million iPhones during the quarter to take a 14% share of the market, down 16% from 52.2 million units shipped the year prior. The performance landed Apple in third place, behind market leader Samsung and Huawei, which shipped 70.8 million and 59.1 million handsets over the same period, respectively.

"The fourth quarter likely left Apple with excess inventory, creating an incentive for the company to use more generous trade-in offers and more financing options in as many regions as possible," according to IHS analysts. "While slightly reducing prices in China might encourage some buyers, Apple faces the underlying challenge of charging premium pricing in a maturing smartphone market. As a result, Apple may not be able to find short-term fixes for its problems."

Oppo and Xiaomi rounded out the top five with a respective 25.2 million and 24.7 million units shipped, both good for about 8% of the market.

While IHS' iPhone numbers came close to expectations from Cybart and others, the firm's methodology resulted in the same IDC error that riled Xiaomi, but 300,000 units lower.

So far, Canalys estimates were nearest to Xiaomi's referenced range of above 27.5 million units for the quarter. The research firm overestimated at 27.8 million smartphones shipped, down 1.3% year over year.

With Apple no longer reporting unit sales of major product categories, research firms are left guessing and the results run the gamut.

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33 Comments

ireland 17435 comments · 18 Years

About 5 years ago

Prices matter.

eriamjh 1760 comments · 17 Years

Profit matters. The number of phones shipped is irrelevant compared to the profit any company makes from what they do sell.

Apple’s prices are up, for sure. I’m not happy about it, either.

GeorgeBMac 11421 comments · 8 Years

eriamjh said:

Profit matters. The number of phones shipped is irrelevant compared to the profit any company makes from what they do sell.

Apple’s prices are up, for sure. I’m not happy about it, either.

Guy on corner:   "Apples for sale! Just $10,000 each!"
Customer:   "How many do you expect to sell for that much?"
Guy on the corner:   "All I have to do is sell one!"

Throughout most of my adult life, the seeking of short term profits has always been a criticism of American industry. Now, that industry has mostly moved to other countries. Apple, thankfully, has mostly resisted that urge to value profit over all else.

The chart is most interesting in that it shows that every manufacturer (except one who shall remain nameless because we hate them) saw a decline in smartphone sales.

This is what happens when markets mature -- sales begin to fluctuate based on a variety of factors.
For myself, I have a 4 1/2 year old iPhone 6+ that is working just fine and meets my needs well. Why should I trade it for an Xs or Xr?

avon b7 8010 comments · 20 Years

eriamjh said:

Profit matters. The number of phones shipped is irrelevant compared to the profit any company makes from what they do sell.

Apple’s prices are up, for sure. I’m not happy about it, either.

But iPhone revenues are down - by double digits.

After years of non existent growth, Apple is down in two consecutive quarters (one of them, the blowout quarter).

Prices matter. In Apple's case much more, as its iPhone market seems to be contracting along with the wider smartphone market. The only player which is bucking the trend, and in a huge way, is Huawei.

A lot of Apple's services revenue also sits on top of an iPhone.

iPhone will become less relevant to Apple (post iPhone era for Apple - just like post iPod) but as of today, iPhone remains a huge revenue earner. Watching it slip, partly because of price, should be something of concern. Hence the price adjustments and trade in improvements over the last few months.

AFAIK, all the manufacturers named are making a profit too.