According to the study, while global smartphone sales rose 4.3% year-over-year in the second quarter to 344 million units, Apple’s iPhone is lagging the competition badly. Apple has now seen three consecutive quarters of negative smartphone sales growth, with Q2 sales falling 7.7% from last year.
Apple isn’t alone in seeing slowing phone sales, however. Total mobile phone sales at a global level fell 0.5% (this total includes both smart and “dumb” phones), and only half of the top ten phone makers saw positive sales growth in Q2.
One of those phone vendors that actually did see unit growth? Apple’s chief competitor, Samsung. The Korean electronics giant saw 6.5% higher smartphone unit sales this past quarter, and its market share grew as well. In contrast, Apple’s market share plunged almost 12%:
Apple vs. Samsung Q2 Smartphone Stats
|Company||Q2 Unit % Chg||Q2 ’16 Market Share||Q2 ’15 Market Share||YoY % Chg|
With Apple’s iPhone sales plunging and market share eroding, its new iPhone 7 can’t come soon enough. Whether the new device is compelling enough to inspire its hundreds of millions of users to upgrade or not will likely determine the stock’s direction for the next several months, if not years.
Apple shares fell $0.12 (-0.11%) to $109.10 in premarket trading. AAPL stock has gained 3.76% since the start of 2016, compared with a 7% rise in the benchmark S&P 500 index during the same period.