iPhone still the top-seller in Q4 2017 says Strategy Analytics

So, Apple sold fewer iPhones in Q4 2017 than the year before and that's while having both the iPhone 8 and iPhone X in steady supply. The dip in sales is alarming to some because it is the first time in the iPhone's history that it's decreased year over year. There's various reasons that analysts are trying to determine as the cause. Higher price of the iPhone X, confusion or indecision in choosing between iPhone 8 Plus and iPhone X, uncertainty about the lack of of Touch ID on the X, the list goes on.

Despite this, Apple still had record earnings and now Strategy Analytics is telling us the entire smartphone industry has taken a 9 per cent decline in 2017. This is mostly attributed to a 16 percent decline in demand from China, the biggest smartphone market in the world.

The firm maintains that the iPhone was still the no.1 seller, accounting for 19 percent market share in the holiday quarter and edging out Samsung and local hero Huawei. Strategy Analytics suggests Apple needs to sell a new line of cheaper smartphones with focus on the lower end of the market.

This isn't Apple's style as they prefer to sell older models at a discounted rate. Still, with issues surrounding battery throttling affecting these older devices, it might be timely to revisit a strategy similar to the iPhone 5c, which used cheaper components to bring the iPhone to new markets.

Linda Sui, Director at Strategy Analytics, said, “Global smartphone shipments declined 9 percent annually from 438.7 million units in Q4 2016 to 400.2 million in Q4 2017. It was the biggest annual fall in smartphone history. The shrinkage in global smartphone shipments was caused by a collapse in the huge China market, where demand fell 16 percent annually due to longer replacement rates, fewer operator subsidies and a general lack of wow models. However, on a full-year basis, global smartphone shipments grew 1 percent and topped an impressive 1.5 billion units for the first time ever.”

Source: 9to5Mac