Apple Set to Lead Smartphone Market After 14 Years
Apple is on the brink of a significant milestone as it aims to become the leader in the global smartphone industry for the first time in 14 years. The release of the iPhone 17 series has generated remarkable consumer interest, contributing to Apple's strong position despite facing criticism for its innovation pace and challenges from competitors.
Analysts from Counterpoint Research predict that Apple will surpass Samsung in smartphone shipments by 2025, projecting shipments of 243 million iPhones compared to Samsung's 235 million. This marks a significant shift in the market, as Samsung last held the top spot over a decade ago.
The excitement surrounding the iPhone 17 series is attributed to a shift in consumer behavior. Many individuals who purchased smartphones during the COVID-19 pandemic are now looking to upgrade. This trend, combined with Apple's strong market presence, is expected to drive a 10% increase in iPhone shipments by 2025, significantly outpacing the overall smartphone market growth.
In India, Apple's performance has been particularly noteworthy. The company's market share reached 10.4% in Q3, reflecting an impressive year-on-year growth of 25.6%. This growth is supported by both online and offline sales channels, as many Indian consumers view the iPhone as an aspirational product. However, despite this growth, Apple's domestic sales accounted for just over 2% of its global revenues of $416.1 billion.
Counterpoint Research also highlights the growing market for used iPhones, indicating a robust segment for Apple. Over 358 million second-hand iPhones are expected to be sold between 2023 and 2025, showcasing the brand's lasting appeal.
Moreover, while Apple has faced some challenges, its ability to navigate geopolitical tensions and tariff impacts has positioned it favorably in the market. With plans to introduce budget-friendly options like the iPhone 17e and a foldable iPhone by 2026, Apple's future looks promising.
Nonetheless, rising component prices could pose challenges for the smartphone market. As Apple continues to innovate and expand its offerings, the company's ability to maintain its momentum will be crucial for its long-term success.
