In 2023, the global smartphone industry faced a formidable challenge, with shipments declining consistently in the first three quarters. However, the tide turned in the fourth quarter, coinciding with the holiday season, bringing much-needed relief to smartphone OEMs. According to IDC, worldwide smartphone shipments grew 8.5% YoY in Q4 2023, reaching a total of 326.1 million units. Interestingly, Apple dethroned Samsung to claim the top spot in the global smartphone market during the fourth quarter of 2023, replicating its dominance over the previous four years.
Apple’s performance was particularly striking, shipping 80.5 million units of iPhones in Q4 2023, with an impressive 11.6% YoY growth. In contrast, Samsung shipped only 53 million units globally, with a notable 10.9% YoY decline. What adds to the intrigue is Samsung’s consistent yearly decline in smartphone shipments across all four quarters of 2023.
Taking a broader perspective, worldwide smartphone shipments declined 3.2% YoY in 2023 to 1,166.9 million units. It is important to note that Apple seized the throne from Samsung as the dominant player in the global smartphone market in 2023. This historic achievement marks the first time since 2010 that a company other than Samsung has claimed the numero uno position in the global smartphone market. In that pivotal year, Apple shipped 47.5 million units, outpacing Samsung’s 22.9 million units.
Smartphone Shipments 2023: Main Highlights
- In 2023, Apple surpassed Samsung to become the leader in the global smartphone market, securing a significant 20.1% market share. The Cupertino giant demonstrated its dominance by shipping 234.6 million units of iPhones worldwide throughout the year, with a 3.7% YoY growth in iPhone shipments.
- Samsung registered a 13.6% YoY decline in smartphone shipments globally, totalling 226.6 million units in 2023. It is crucial to highlight that the Korean giant was the only OEM among the top five that experienced a double-digit yearly decline in shipments throughout 2023, spanning Q1, Q2 and Q4 2023. Even in Q3, while the decline was slightly lower at 8.4% YoY, it highlighted the persistent challenges faced by Samsung throughout the year in the global smartphone market.
- Xiaomi continues to be the third-largest smartphone company in the world, with a 12.5% market share in 2023. The Chinese giant shipped 145.9 million units last year, with a 4.7% YoY decline. However, this single-digit yearly decline was attributed to Xiaomi’s impressive fourth-quarter performance, where the company recorded an appreciable 22.7% YoY growth in its smartphone shipments worldwide, totalling 40.7 million units.
- Oppo maintained its position as the fourth-largest smartphone brand in the world, with an 8.8% market share in 2023. The Chinese OEM shipped 103.1 million units throughout the year, registering a 9.9% YoY decline. Notably, Oppo faced a consistent single-digit yearly decline in smartphone shipments across all three quarters of 2023. In Q4, Oppo lost its position in the top five to Transsion and vivo.
- Transsion has become a notable player in the global smartphone industry, making headlines since its entry into the top five in Q2 2023. Since then, the brand has consistently experienced remarkable double-digit growth in all quarters, with growth rates of 34.1% YoY in Q2, 35% YoY in Q3, and 68.6% YoY in Q4 2023. In 2023, Transsion smartphone shipments grew 30.8% YoY to 94.9 million units globally, securing fifth place.
In a Nutshell
The global smartphone industry has encountered significant challenges in recent years, driven by macroeconomic uncertainties, inventory issues, shifts in consumer preferences, and job losses in the tech sector, among other factors. Despite these hurdles, the rise in the adoption of premium smartphones has notably contributed to the increasing demand for Apple iPhones, even though they rank among the world’s most expensive devices.
E-commerce platforms offering discounts and coupons, particularly during the last quarter from October to December, have also played a pivotal role in the upswing of Apple iPhone shipments in 2023.
Apple, despite facing increased regulatory challenges and resurgent competition from Huawei, particularly in its largest market, China, continues to thrive in the global smartphone market. The key driving force behind Apple’s success lies in the growing popularity of premium devices, which now account for more than 20% share of the total smartphone market. This achievement is further bolstered by Apple’s strategic use of aggressive trade-in offers and interest-free financing plans, enhancing its competitive edge.
On the flip side, the Android smartphone market remains fiercely competitive, with key players such as Huawei, Xiaomi, Oppo, Vivo, OnePlus, Honor, and Google, actively vying to challenge Samsung’s dominance. This competition is fueled by the launch of foldable and AI-capable smartphones at attractive prices. Now, it would be interesting to see how Samsung reclaim its top spot from Apple in the ever-evolving worldwide smartphone market.
