By Kate Yuan

(JW Insights) Aug 14 -- China became the largest single market for iPhone in its shipments in Q2, surpassing the US for the first time, according to the latest data released by research firm TechInsights.

Apple iPhone shipments declined by 9.3% compared to the previous year to reach 43.1 million units and 16.0% market share. This represents the highest second quarter annual decline for Apple over the past eight years (2016-2023). The profit margin of the iPhone remains significantly ahead of its competitors, being 2.75 times that of Samsung's smartphone earnings.

The other major markets for iPhone after China and the US are Japan, the UK, and India.

Apart from macroeconomic factors, no newly launched iPhone SE model in 2023 compared to one in 2022 adds to the decline this quarter. Additionally, demand in North America, Western Europe, and Japan remained lukewarm, largely attributable to Apple’s mixed performance, said TechInsights.

In addition, Apple registered its highest ever second quarter average selling price (ASP) driven by higher mix of iPhone 14 series Pro models.

TechInsights predicts that the ASP of iPhones will further increase in Q3 and Q4 of 2023, driven by the launch of the iPhone 15 Pro. The iPhone 15 Pro is expected to feature thinner bezels with LIPO technology and utilize titanium alloy materials, making it more expensive compared to previous models.