Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
Samsung continues to maintain its lead in the smartphone market by garnering a market share of 18.9% and shipping a total of 53.9 million units in the second quarter of 2024, according to preliminary data released by the International Data Corporation (IDC).
Apple follows closely behind with a 15.8% market share and 45.2 million units shipped. Xiaomi sits at third place with 14.8% and 42.3 million units. Vivo and OPPO are nearly tied for fourth and fifth with a market share of 9.1% and 9.0% respectively, shipping 25.9 million and 25.8 million units each. All other brands combined captured 32.3% of the market share with 92.1 million units shipped, bringing the total number of smartphones shipped in Q2 2024 to 285.4 million.
The data analysis shows that Samsung captured the top position thanks to a strategic focus on its flagships and a strong AI strategy.
Xiaomi and Vivo both saw double-digit growth with strong performances in emerging markets and China, while OPPO’s 1.8% growth was due to a successful ongoing expansion outside China.
Worldwide Quarterly Mobile Phone Tracker produced by the IDC shows that global smartphone shipments increased 6.5% when compared to the same quarter last year. This marks the fourth consecutive quarter of shipment growth. But market experts say demand is yet to come around in full and remains challenged in many markets.
“While recovery is well under way with the top five companies all making year-over-year gains, we are seeing increasing competition amongst the leaders and a polarisation of price bands,” says Nabila Popal, senior research director with IDC’s Worldwide Tracker team.
Popal highlights how Apple and Samsung benefit from the premium market segment, while Chinese companies focus on capturing volume in the lower price bands. This trend is putting pressure on mid-range devices.
“The excitement surrounding next-generation AI-powered smartphones is a bright spot,” Popal continues. “These Gen AI devices are expected to be the fastest-growing mobile innovation ever, capturing an estimated 19% market share with 234 million shipments in 2024.”
Apple held its developer conference last month where it showcased new AI features for its iPhones powered by OpenAI’s ChatGPT.
Samsung also held its Galaxy Unpacked event last week where it announced new models for its Galaxy fold and flip as well as new AI features.
As competition increases, IDC anticipates a very positive and interesting second half of the year with a tight race among the leading players.
“The growth in the second quarter continued to provide some relief, though it’s partly supported by a low comparison base and the overall recovery is still at a soft pace,” said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific.
Wong highlights the cost pressures faced by some manufacturers, leading them to refine product specifications or pricing strategies to maintain profitability. However, he emphasises that the second half is likely a prelude to the launch of more Gen AI smartphones, potentially driving the next wave of growth after 5G and foldable phones.
