Consumers have started to favour Android-powered LTE smartphones instead.
Earlier this month, Canaccord Genuity analyst Mike Walker said theiPhone is the best-selling smartphone in the US. Now, he tells investors that sales have dropped in "developed markets" but didn't specify which ones had been affected.
Consumers are reportedly moving on from the Apple device in favour of LTE smartphones, an area that Android rivals continue to excel in.
Walkley predicts that sales will continue to fall until Apple releases a LTE-powered iPhone 5, which is expected to create a surge in sales that will outweigh the Q1 lull.
It's not the first time iPhone sales have dropped. Samsung smartphone sales overtook Apple's in Q3 2011 as users abstained from an iPhone 4 purchase ahead of the iPhone 4S release – or iPhone 5 as it was thought at the time.
Walkley predicts Apple has sold 32.6 million iPhones, 12.3 million iPads and 4.4 million Macs during the first quarter.
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