Apple enjoys huge sales in Q2 amidst vendors facing chip shortage

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Apple has been riding a high tide. Yet another milestone saw the tech mammoth register a blockbuster revenue growth for iPhones in the second quarter this year. Where the unit total was increased only by 1% (45.7 million units), the revenue growth was impressive. According to a Canalys report, major brands have struggled to secure key components used in the production of devices to meet the global demand.

Apple stated that its iPhone revenue has set a June quarter record of $39.6 billion. This means a 50 percent year-over-year growth which is huge.

Canalys Research Analyst, Le Xuan Chiew stated, “The big difference here is the mix of iPhones selling. Apple launched the low-cost iPhone SE in April 2020, which accounted for 28 percent of its mix at that time. This year, with no new iPhone SE, its average selling price increased drastically.”

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Apple’s iPhone 12 mini has massively underperformed. Even though wholesale discounting was availed, the mini version performed against our expectations. and The iPhone 12 Pro models have become a popular choice though, at 37 percent.

Chiew also added saying, “Apple, like all brands, will run into component headwinds in H2 2021. But its scale has significant weight with supply chain partners, and it will not suffer to the same extent as smaller rivals.”

What did the global market look like?

The Q2 of 2021 saw a 9 percent drop in global smartphone shipments compared to the previous quarter. The shipments reached 316 million units. Samsung was the leading vendor shipping 58 million units while also enjoying an 8 percent year-on-year growth. Xiaomi hit the second spot for the first-ever time. Xiaomi managed its all-time high of 52.8 million units at a staggering 83 percent growth.

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Oppo and Vivo ranked fourth and fifth respectively. Oppo managed 32.6 million units whereas Vivo shipped 31.2 million units. As we see the supply constraints easing in 2022, we can expect the market to explode.

Canalys Research Manager, Ben Stanton said, “A war has already started, with brands pouring substantial sums of money into showpiece marketing in international markets. Vivo and OPPO have been at the forefront of this drive, purchasing lucrative sponsorships with the likes of the Indian Premier League, the World Cup, Wimbledon, and FC Barcelona.”

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