Apple became the world’s largest smartphone maker in 2023 for the first time ever. Despite a rough start to 2024, we think the company can build on this momentum in the U.S. and China. The iPhone creator overtook tech behemoth Samsung in market share last year. Samsung’s Android-based devices have been consistently No. 1 since 2010. Apple’s frontrunner status was confirmed in separate industry research reports from International Data Corporation (IDC) on Monday and Canalys on Tuesday. The flip, which does not surprise us and was a long time coming, happened during a year when the overall smartphone market softened a bit and competition in China heated up. “Apple’s ongoing success and resilience is in large part due to the increasing trend of premium devices, which now represent over 20% of the market, fueled by aggressive trade-in offers and interest-free financing plans,” said Nabila Popal, research director with IDC’s Worldwide Tracker team. “All this despite facing increased regulatory challenges and renewed competition from Huawei in China.” Shares of Apple soared 48% in 2023. But, like many of last year’s Big Tech winners, it has declined early in 2024. A raft of recent downgrades and cautious analyst research has not helped sentiment around the stock either. Wall Street likes to pile on when shares hit a rough patch — which, this time, saw Apple recently lose its most-valuable-company-in-the-world crown to Microsoft . AAPL 5Y mountain Apple 5 years However, Apple is not going anywhere. The iPhone continues to attract new buyers because of its quality and closed ecosystem, which prioritizes privacy and security. Don’t forget, that once a user has invested in the Apple ecosystem, the switching costs can be prohibitive. To be sure, Apple’s iPhone is facing intensified competition in China as domestic players like Huawei and Xiaomi have started offering high-end alternatives. But, the firm has been trying to offset any potential weakness in sales by…
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