A recent report by Counterpoint Research sheds light on the dynamic state of the global smartphone market. The report, covering 2023 and the first quarter of 2024, reveals a positive trend with growth of 6% year-on-year. This growth coincides with a reshuffle of the leading brands, with Samsung reclaiming the top spot from Apple.
Samsung is reclaiming the top spot in the booming smartphone market
A rising market
The smartphone market continues to see steady growth fueled by increasing consumer demand and technological advancements. Counterpoint report confirms this trend, showing a 6% increase in global smartphone shipments compared to the previous year. This positive outlook reflects the continued reliance on smartphones for communication, entertainment and various everyday tasks.
Samsung’s return to dominance
The most significant change comes with Samsung overtaking Apple as the leading smartphone vendor by shipment share. In the first quarter of 2024, Samsung captured 20% of the market, regaining its position after Apple’s brief reign at the end of 2023. This shift can be attributed to several factors, including strong sales of the Galaxy S24 series, potentially driven by innovative competitive pricing features or strategies.
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Apple maintains revenue lead despite falling shipments
Although Apple saw a decline in shipment share, falling to 17% in Q1 2024, it remains the leader in terms of revenue share. This seemingly contradictory observation can be explained by Apple’s continued success in the premium segment. Despite a slight increase in average selling price from $880 in Q1 2023 to $900 in Q1 2024, Apple’s devices still command a significant premium compared to competitors. This strategy allows them to maintain a higher profit margin even with a smaller market share by volume.
The competitive landscape
Apart from the top two players, the report highlights the presence of strong competitors such as Xiaomi, Oppo and Vivo. Xiaomi, in particular, registered impressive growth with a 14% share in Q1 2024. Reflecting the growing popularity of its mid-range and budget smartphones. Oppo and Vivo also have significant positions with 8% and 7% market share respectively, indicating a competitive environment with diverse offerings catering to different price points.
I expect
The smartphone market continues to be a dynamic space with constant innovation and changing consumer preferences. While Samsung currently holds the top spot by volume, Apple’s focus on premium devices ensures its continued dominance in terms of revenue. Also, the rise of Chinese brands like Xiaomi means a growing market for affordable and feature-rich smartphones. Overall, the report presents a positive outlook for the smartphone industry, with various players offering options to suit different consumer needs and budgets.
