Apple on Thursday posted its earnings report for the December 2023 quarter, or the primary quarter of fiscal yr 2024. Revenues of $119.58 billion beat expectations for the interval, though it’s not fairly a report, falling wanting the $123.9 billion from the December 2022 quarter. Out of that, $33.9 billion represents revenue for the quarter.
Put otherwise, the iPhone accounted for $69.7 billion in income, or nearly 60% of product gross sales for the interval. That’s simply loopy, and one thing rivals can’t match. It additionally occurred throughout a slower yr for the smartphone enterprise on the whole, as most corporations suffered.
Past exceeding Apple’s expectations, the iPhone crushed Android like by no means earlier than as effectively. Counterpoint Analysis offered the info in two studies highlighting how uneven the enjoying subject was throughout not simply the fourth quarter of 2023 however the complete yr.
The iPhone accounted for 64% of US smartphone gross sales throughout the December 2023 quarter. Counterpoint Analysis explains that Apple’s huge quarter helped the complete US smartphone shipments develop 8% yr over yr throughout the interval.
The report additionally factors out that whereas Apple saved promoting extra iPhones than within the earlier quarters, Android distributors struggled to maneuver sub-$300 gadgets. Samsung got here in second with 18% of gross sales within the US, and Motorola took third place with 8%. Google’s Pixels accounted for two% of the market.
The Counterpoint researchers count on the US market to see low single-digit development in 2024 because the economic system rebounds.
In a separate report, Counterpoint Analysis highlighted the iPhone’s efficiency internationally for the complete yr of 2023.
Apple won’t reveal iPhone gross sales figures, however we’d not want them. The analysis agency offered different stats that present how huge Apple’s dominance is. The iPhone accounted for 50% of worldwide smartphone gross sales income final yr.
That is the primary yr Apple has reached that determine. That’s half of the just about $410 billion in gross sales this yr. Smartphone gross sales dropped 2% in 2023 in comparison with 2022, accounting for income of “a bit of underneath $410 billion.”
Furthermore, smartphone shipments dropped by 4%, right down to 1.17 billion items in 2023. Many of the smartphones bought final yr had been Android gadgets, nevertheless. Apple ships not less than 200 million items a yr on common. The purpose right here is the iPhone captured 50% of income with out additionally accounting for 50% of the marketshare.
The identical report notes that Apple overtook Samsung for the primary time when it comes to annual gross sales. Apple reached 20% of the market. That might quantity to some 234 million iPhone items. Samsung got here in second with 19%.
If that’s not sufficient, the iPhone’s common promoting value (ASP) saved rising in 2023, reaching $890. Samsung’s ASP got here in second, rising as effectively in comparison with 2022. However Samsung’s $288 ASP pales compared. The International ASP rose to $350 final yr, largely pushed by the iPhone.
It’s not simply the US that helped Apple crush Android final yr. The iPhone noticed development in varied different key markets, which could have offset slower gross sales in China. That’s in accordance with Counterpoint Analysis director Jeff Fieldhack:
Apple displaced Samsung as the largest participant in shipments for the primary time in a full yr. Whereas the US made the largest quantity contribution to Apple’s development, it additionally obtained a serious enhance by means of double digit development in rising markets together with India, Caribbean and Latin America (CALA) and Center East and Africa (MEA).
This development offset any challenges Apple might have confronted in China as a result of resurgence of Huawei. With an accompanying ASP development of two%, it may be seen to be in a income super-cycle, buoyed by its ecosystem stickiness coupled with the premiumization pattern, crossing an annual income of $200 billion.
The iPhone noticed elevated competitors in China final yr, and the market may proceed to symbolize a priority within the coming months and years. The resurgence of Huawei within the premium phase threatens iPhone 15 gross sales. Different native Android distributors will put strain on Apple’s older fashions (iPhone 13 and iPhone 14) within the close to future.
