The global smartphone market witnessed a significant shift in the first quarter of 2024, with Samsung taking the lead from Apple to become the top player. According to a report by Counterpoint Research, the global smartphone market grew by 6% year-on-year to reach 296.9 million unit shipments in the first quarter of 2024. Samsung managed to secure a 20% shipment share, marking a significant milestone in the competitive landscape of the smartphone industry.
The growth in the global smartphone market was primarily driven by strong performance in key regions such as Europe, Middle East and Africa (MEA), Caribbean and Latin America (CALA), and India. The Indian market, in particular, saw growth due to healthy inventory levels exiting 2023. However, the mature markets of North America and Japan experienced a decline relative to the same period in 2023, as noted by senior analyst Prachir Singh.
Apple, on the other hand, witnessed a 13% year-on-year decline in shipments, primarily due to high inventory build-up during the last quarter. Despite the decline in shipments, the brand's average selling price (ASP) grew by 2% year-on-year, indicating a shift in consumer preference towards higher-priced models.
Emerging Trends and Key Players
Among the top five original equipment manufacturers (OEMs), Xiaomi stood out with the fastest revenue growth, thanks to its strong performance in key markets. This growth is a testament to the brand's strategic focus on product innovation and market expansion.
Research director Jeff Fieldhack pointed out several factors that weighed on iPhone's performance. These included tough competition in China, record low upgrades in the US, and a difficult comparison from the previous year due to the supply of iPhone 14 Pro shifting to Q1 2023.
Samsung's rise to the top spot was driven by the early refresh of the Galaxy-A-series and the strong performance of the Galaxy S24 series. The company also reached its highest-ever ASP during the quarter, further solidifying its position in the market.
The Rise of GenAI and Future Projections
The report also highlighted the emergence of GenAI-capable smartphones, with more than 10 OEMs launching over 30 such devices. Counterpoint Research estimates that GenAI's share of overall smartphone shipments will reach 11% in 2024, indicating a growing trend towards AI-enabled devices.
The global smartphone revenues also saw a 7% growth in Q1 2024, reaching the highest-ever level for the first quarter of the year. This growth underscores the increasing consumer spending on smartphones and the growing importance of the smartphone industry in the global economy.
In the past, similar shifts in market leadership have occurred, reflecting the dynamic nature of the smartphone industry. For instance, Nokia was once the undisputed leader in the mobile phone market before being dethroned by Apple and Samsung. The current shift in market leadership underscores the importance of continuous innovation and adaptability in the highly competitive smartphone market.
The first quarter of 2024 marked a significant shift in the global smartphone market, with Samsung dethroning Apple to become the top player. The growth in the market was driven by strong performance in key regions and the emergence of GenAI-capable smartphones. However, the dynamic nature of the smartphone market means that manufacturers must continue to innovate and adapt to maintain their market positions. As the industry continues to evolve, it will be interesting to see how these trends develop and what new innovations will shape the future of the global smartphone market.
