Apple actions: Apple Shares fell 7.4 percent from an all-time high of $237.23 to $220.82 ahead of the expected launch of the iPhone 16. The drop comes as the tech giant prepares to unveil its latest iPhone lineup at its fall event on Sept. 9 at its Cupertino headquarters. Investors appear cautious ahead of the product launch, contributing to the recent stock drop, which is seen as part of a broader market trend influenced by high competition in the global smartphone sector.
According to Counterpoint research, the global smartphone market grew 8 percent year-on-year (YoY) in the second quarter of 2024, reaching 289 million units shipped, driven by increased consumer demand in regions such as the Caribbean, Latin America, and Europe. Samsung maintained its top spot with a 19 percent shipment share, boosted by strong sales of its Galaxy A series. However, Apple Xiaomi’s shipments showed marginal growth in the second quarter due to weaker demand in North America and tough competition in China. In contrast, Xiaomi led the market with 27 percent growth, benefiting from strong performance in China, India and emerging markets.
Apple Inc. reported better-than-expected earnings and revenue for the first quarter of fiscal 2024. The company’s net income rose by double digits to $33.92 billion, or $2.18 per diluted share, beating analysts’ estimates of $32.56 billion, or $2.09 per share.
Revenue rose 2 percent to $119.58 billion, also beating projections, driven by record services revenue and a nearly 6 percent increase in iPhone Sales. Despite this growth, Apple experienced a notable 13 percent drop in sales in the Greater China region, even as revenue increased in all other geographies.
The decline of Greater China Apple China’s third-largest market, which includes mainland China, Hong Kong and Taiwan, could raise concerns about declining demand, particularly as competition from local brands such as Huawei intensifies.
Meanwhile, Apple will assemble its latest iPhones in India.
Apple Four models are planned to be launched in the iPhone 16 series: iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. All models will run iOS 18 and feature Apple Intelligence. While iPhone 16 and iPhone 16 Plus will retain the 6.1-inch and 6.7-inch screen sizes, iPhone 16 Pro and Pro Max will feature larger 6.3-inch and 6.9-inch displays, respectively.
A key change in this generation is the use of the A18 chip in all models, which marks a change from Apple Samsung’s usual practice of equipping non-Pro models with older chips. In addition, the Pro and Pro Max versions will receive significant camera improvements, including a 48MP ultra-wide-angle lens and an improved telephoto system.
The A18 chip is based on Arm’s V9 architecture, with Apple extending its partnership with Arm through 2040. Arm’s technology plays a dominant role in the smartphone chip market, accounting for 50 percent of global revenue, and has been a key partner for Apple since 1990.
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