Apple faced a remarkable 10% drop in smartphone sales last quarter, as reported by market research firm IDC. The primary culprit? A significant decline in iPhone sales in China.

The company's footing in China has weakened due to a combination of nationalism, economic challenges, and intensified competition, resulting in a steep decline over recent months.

Nabila Popal, research director at IDC, commented on Apple's resilience over the past four years, navigating through supply chain hurdles and broader economic issues better than many other brands.

After briefly claiming the top spot from Samsung last year, Apple relinquished it after just one quarter. Samsung regained its position in the first quarter of 2024, according to IDC.

Popal also highlighted Samsung's resurgence and the expectation that Android, Samsung's operating system of choice, will outpace iOS in growth this year.

Overall, IDC reported a 7.8% year-over-year increase in global smartphone shipments in the first quarter of 2024, signaling a resurgence in the market after facing macroeconomic challenges for two years.

Samsung led the pack with approximately 20.8% market share, followed closely by Apple with 17.3%, and Xiaomi with 14.1%.

While IDC anticipates Apple and Samsung to maintain their dominance, the resurgence of Huawei and other Chinese brands like Xiaomi and OPPO/OnePlus poses continued competition, particularly in the Chinese market where national brands are gaining preference.

Despite China's importance as Apple's second-largest market, the company faces challenges there, prompting it to offer discounts to stimulate sales.

On the innovation front, Apple's approach to artificial intelligence (AI) remains relatively muted compared to its competitors, with Popal noting Samsung's emphasis on AI in its recent Galaxy S24 lineup.

As the smartphone market rebounds with a focus on AI, Samsung is positioned for further growth, while Apple's messaging on AI is eagerly awaited, potentially influencing consumer interest and addressing the challenges it faces.