Apple's iPhone Revenue Drops by $2.7 Billion Year-over-Year to $85.2 Billion in H1

After taking first place in the smartphone market in the last quarter of 2023, Apple’s iPhone sales have declined, leading to a significant revenue drop in the first half of the year.

According to data presented by Stocklytics.com, Apple’s iPhone sales revenue dropped by $2.7 billion year-over-year, totaling $85.2 billion in H1 2024.

Rising Chinese Competition Cuts iPhone Sales

Thanks to Apple’s ability to keep its smartphone competitive with new releases and updates, the iPhone has been the tech giant’s most successful product since its introduction to the market in 2007, delivering users with the right combination of user experience and status symbol appeal.

Although it remains one of the most heavyweight players in the smartphone market, the rising Chinese competition from brands like Xiaomi, Vivo, and Oppo, known for their aggressive pricing and offering high-specification phones at lower prices, had a significant impact on iPhone sales, causing it a considerable decline in revenue and shipments.

According to IDC Quarterly Mobile Phone Tracker, the iPhone maker shipped 50.1 million of its smartphones in Q1 2024, five million less than in the same period last year, while iPhone sales dropped by almost 10% to $45.9 billion. The dowsing trend continued in the second quarter of the year. Although iPhone shipments rose by a modest 1.5% year-over-year to 45.2 million, quarterly revenue dropped by $400 million, totaling $39.2 billion, according to Apple’s official data.

The aftermath of two straight quarters of decline was a considerable $2.7 billion revenue drop. Statistics show the tech giant grossed $85.2 billion from iPhone sales in H1 2024, down from almost $88 billion in the same period last year.

iPhone unit shipments as a share of global smartphone shipments also declined. The IDC data show Apple claimed a 15.8% market share in the second quarter of 2024, down from 16% in the same period last year. Apple’s biggest competitor, Samsung, also saw its market share decline, falling from 20% in Q2 2023 to $18.9% in Q2 2024.

iPhone Sales Now Makes Roughly 46% of Apple’s Total Revenue, 2% Less than Last Year

With the last two quarters bringing a revenue decline, iPhone’s revenue share in Apple’s total revenue also dropped. According to the company’s official data, iPhone sales made up close to 46% of Apple’s total revenue in the third quarter of the company’s fiscal year 2024 or 2% less than in the same period last year.

This also represents a significant decline compared to a period between 2017 and 2020, when iPhone revenue share stood between 55% and 60%.  The tech giant’s other businesses, such as the iTunes Store and Apple Watch, have seen their revenue shares rise, growing from roughly 5% in 2017 to nearly 30% in Q3 FY 2024.