Recent data from research firm IDC has revealed a significant decline in Apple’s smartphone shipments, dropping by about 10% in the first quarter of 2024. The decline comes amidst intensifying competition from Android smartphone makers vying for the top spot in the global market.
Global smartphone shipments, however, saw an overall increase of 7.8% to 289.4 million units during January-March, with Samsung emerging as the new leader with a 20.8% market share, overtaking Apple.
Apple’s steep sales decline follows its strong performance in the previous quarter, where it surpassed Samsung to become the world’s No.1 phone maker. However, Chinese brands like Huawei have gained market share, pushing Apple back to the second spot with a 17.3% market share.
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Xiaomi, another leading Chinese smartphone maker, secured the third position with a market share of 14.1% during the first quarter, further highlighting the increasing dominance of Chinese brands in the global market.
Samsung’s success can be attributed to the launch of its latest flagship smartphone lineup, the Galaxy S24 series, at the beginning of the year, which contributed to shipping over 60 million phones during the period. Global sales of Galaxy S24 smartphones witnessed an 8% increase compared to the previous year’s Galaxy S23 series during the first three weeks of availability.
In contrast, Apple shipped 50.1 million iPhones in the first quarter, down from 55.4 million units shipped during the same period last year. This decline underscores the challenges faced by Apple, particularly in the competitive Chinese market where its smartphone shipments shrank by 2.1% in the final quarter of 2023 compared to the previous year.
Despite the challenges, IDC remains cautiously optimistic about the smartphone industry’s recovery, noting that the first quarter marks the third consecutive quarter of shipment growth. Ryan Reith, Group Vice President of IDC’s Worldwide Mobility and Consumer Device Trackers, noted the ongoing recovery and market optimism among top brands.
“As expected, smartphone recovery continues to move forward with market optimism slowly building among the top brands,” said Reith.
“While Apple managed to capture the top spot at the end of 2023, Samsung successfully reasserted itself as the leading smartphone provider in the first quarter. While IDC expects these two companies to maintain their hold on the high-end of the market, the resurgence of Huawei in China, as well as notable gains from Xiaomi, Transsion, OPPO/OnePlus, and vivo will likely have both original equipment manufacturers (OEMs) looking for areas to expand and diversify.”
He added that “as the recovery progresses, we’re likely to see the top companies gain share as the smaller brands struggle for positioning.”
Nabila Popal, Research Director with IDC’s Worldwide Tracker team, echoed similar sentiments, highlighting the growth in value and average selling prices (ASPs) as consumers opt for more expensive devices.
Popal also noted a shift in power among the top five companies in the market, indicating a changing landscape as market players adjust their strategies in a post-recovery world.
While Apple faces challenges in maintaining its position in the smartphone market, the industry’s steady growth and evolving dynamics present opportunities for both established players and emerging brands to navigate and capitalize on shifting consumer preferences and market trends.