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In the midst of concerns about Apple’s iPhone business, research firm Counterpoint Research has made a recent reminder that the absolute effect of the new iPhone 15 series would manifest this holiday season. This could help the company better boost its smartphone business, which is currently experiencing a challenging climate, especially in China.
During its fiscal year 2023 Q4 earnings results report, Apple revealed that its iPhone revenue dropped from $205.5 billion last year to $200.6 billion this year. CEO Tim Cook said that the iPhone 15 Pro and Pro Max supply constraint was the reason that led to this downfall.
On a positive note, Apple saw growth in the iPhone’s fourth fiscal quarter of 2023. According to the giant, this sector reached $43.8 billion, an increase from the previous $42.6 billion in the same period last year. As Apple reported, it saw a September quarter revenue record for iPhone. In the end, the company shared expectations for iPhone revenue YoY growth in the December quarter.
Counterpoint supports that claim, saying that Apple will indeed see a bright holiday season. The firm believes that there is a huge base for iPhone 15 upgrades from the current iPhone 11 and 12 users, adding that holiday sales will further aid in this success.
“The full impact of the iPhone 15 series is yet to be seen during the global holiday season expected to be boosted by upgrades from iPhone 11 and 12 users,” Counterpoint wrote in its report this week. “While the latest iPhone series had underperformed in China in the launch quarter due to a shorter pre-holiday shopping period coupled with supply mismatches on the Pro Max, it could see improvement in the year-ending quarter with a strong 11.11 sales event performance which should also benefit other Chinese smartphone vendors. The elongated festive season in India would boost shipments and revenues in the world’s second-largest smartphone market where pent-up demand and 5G upgrades will also contribute to growth. On the whole, the global smartphone market could end the year with cyclical growth.”
The research company also expressed strong faith in iPhones after revealing that it dominated the market with a 43% share of global smartphone revenues, which it said was “the highest-ever for a calendar Q3.” As the firm noted, this happened despite the worldwide smartphone market revenues remaining flat YoY and the iPhone 15 series having a shorter sales period in the third quarter of 2023 compared to its predecessor.
