In another blow to Apple, iPhone shipments fell nearly 10% in the first three months of the year, even as global smartphone shipments increased.

South Korea-based Samsung beat its American counterpart by 10 million units in the first quarter, according to a report released on Monday by market researcher International Data Corporation. Samsung regained its top spot as the smartphone maker with the highest shipments, a title it lost in the last three months of 2023.

iPhone shipments are a closely watched metric because the devices comprise the bulk of the company’s sales. The company sold $69.7 billion of iPhones in the three months ending December 31, according to the company’s most recent quarterly report. Services came in second, at $23.1 billion.

Apple is facing a slew of challenges this year. iPhone sales fell in China, a key market. In recent months, the company abandoned an expensive and decade-long electric vehicle project, and like other Big Tech companies, Apple was recently hit with an antitrust lawsuit by the US Justice Department.

Apple did not immediately respond to a request for comment from Business Insider sent outside regular business hours.

Global smartphone shipments rose for a third straight quarter, up 7.8% year-over-year, signaling a rebound in the overall industry. Last year, annual shipments rose 8.1% from 2022, when they fell lower than 2013 levels due to weak demand and inflation.

“There is a shift in power among the Top 5 companies, which will likely continue as market players adjust their strategies in a post-recovery world,” Nabila Popal, an IDC research director, wrote in Monday’s report. Apple and Samsung “both saw negative growth in the first quarter, it seems Samsung is in a stronger position overall than they were in recent quarters.”

Both Apple and Samsung saw a drop in year-on-year shipments, while Chinese manufacturers Xiaomi and Transsion saw close to a 34% and 85% rise, respectively, from the first quarter last year, per the IDC report.

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