Apple iPhone remains in demand despite inflationary pressures

Shoppers look at iPhone13 smartphones at Apple’s flagship store in Shanghai, China.

Xing Yun | Future Publishing | Getty Images

Shipments AppleiPhone sales remain strong despite regional uncertainty and economic headwinds, which saw global phone shipments drop 9% year-on-year in the second quarter, according to new data from research firm Canalys.

Apple’s share of global phone shipments in the second quarter was 17%, up from 14% in the previous quarter, Canalys said, noting that the iPhone 13 is still in high demand. According to Canalys, Samsung has the largest market share with 21% of the market, but this was mainly due to shipments of its low-cost A-series phones, which cost less than the iPhone 13.

Apple will report earnings on July 28.

Luca Maestri, Chief Financial Officer, warned in April challenges the company is facing this quarter, including supply constraints that could hit total sales up to $8 billion. But the steady appetite for the iPhone 13 suggests phone revenues could be high despite Maestri’s warning.

Canalys analyst Toby Zhu said promotions and special offers would help ease supply pressure, but warned that consumers were suffering from inflation and were unlikely to have the income they had last year to buy new phones. He also warned of constant kinks in the supply chain.

“Although parts supply and price pressures are easing, several challenges remain in the area of ​​logistics and manufacturing, such as tightening import laws in some emerging markets and delaying shipping customs procedures,” Zhu said.

Chinese phone makers may face the brunt of these problems. xiaomi, Oppo and Vivo suffered double-digit declines; they occupy 14%, 10% and 9% of the global market respectively.