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How Will Apple’s iPhone Perform in Fiscal 2Q17?

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Will iPhone shipments rise in fiscal 2Q17?

The iPhone, Apple’s (AAPL) flagship product, accounted for ~67% of the company’s total revenue in fiscal 1Q17. In the quarter, Apple’s iPhone revenue rose 5% YoY (year-over-year) to $54.4 billion, and its shipments rose 5% YoY to 78.3 million units.

In fiscal 2Q16, Apple’s iPhone revenue fell 18% YoY to $32.9 billion. Its shipments fell 16% YoY to 51.2 million units. 

Apple launched the iPhone 7 in September 2016, which drove sales in the holiday season.

Global smartphone shipments rose less than 1% YoY in 2016. In comparison, they rose 47% YoY in 2012, 27.8% YoY in 2014, and 10% YoY in 2015. A mature smartphone market has meant that Apple’s iPhone sales are growing more slowly compared to the exponential growth it saw between 2012 and 2014.

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Apple reclaimed the top spot from Samsung

As we can see in the above table, Apple recently reclaimed the top spot as the leading smartphone manufacturer after eight quarters, according to market research company Gartner. Apple led the market with a share of 17.9%, narrowly surpassing Samsung’s (SSNLF) share of 17.8% at the end of 4Q16.

Samsung’s market share fell in 4Q16, primarily driven by the recall of its defective Galaxy Note 7.

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