The global smartphone market has witnessed a resurgence in consumer demand, albeit at a slower pace. During the second quarter of CY 2024, approximately 285.4 million units of smartphones were shipped, with a modest 6.5% YoY increase. What’s noteworthy is that during the period, all top five brands recorded growth in their smartphone shipments worldwide for the first time after a prolonged period.
As a result, Q2 2024 represents the third consecutive quarter of yearly growth in smartphone shipments.
Before delving deeper, let’s explore how the world’s top five smartphone brands performed in Q2 2024.
Top Smartphone Brands by Market Share Q2 2024
- Samsung continued to hold its numero uno position in the global smartphone market. However, its grip on the market loosened slightly compared to the previous quarter and year. Samsung’s market share dropped to 18.9% in Q2 2024 from 20.8% in Q1 2024 and 20% in Q2 2023. The Korean giant shipped 53.9 million units worldwide, registering a negligible 0.7% YoY growth.
- Apple’s market share also declined to 15.8% in Q2 2024 from 16.6% in Q2 2023. The iPhone maker shipped 45.2 million units during the June quarter, registering 1.5% YoY growth. Apple’s improved performance in China and other key regions contributed to this single-digit growth.
- Xiaomi, on the other hand, is on a roll. The Chinese tech giant recorded its third consecutive quarter of double-digit growth (27.4%), shipping an impressive 42.3 million units in Q2 2024. This surge propelled Xiaomi’s market share to 14.8% in Q2 2024 from 12.4% in Q2 2023.
- Even though Vivo and Oppo both shipped nearly equal numbers of smartphones in Q2 2024, their growth figures highlight a huge gap. Vivo emerged as the world’s fourth largest smartphone brand in Q2 2024 by shipping 25.9 million units with a strong 21.9% YoY growth.
- On the other hand, Oppo shipped 25.8 million units of smartphones worldwide, registering a mere 1.8% YoY growth during the second quarter.
The growth of the world’s top three Chinese smartphone OEMs can be attributed to successful expansions outside of China, particularly in markets like India. For instance, Vivo became the top smartphone brand in India for the first time in Q1 2024, surpassing Samsung and Xiaomi in terms of shipment volume.
Here, a question arises: Can Xiaomi dethrone Samsung to become the world’s top smartphone brand in the coming years?
“Some OEMs took a less aggressive move in 2Q24 amid the BOM costs pressure, which prompted the companies to refine the product specs or pricing to ensure profitability,” said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific.
Smartphone Market Trends: Tale of Two Halves
The global smartphone market is currently witnessing a transformation, with the top five players competing with clear differences in pricing strategies. While Apple and Samsung are capitalizing on the premiumization trend, Chinese OEMs like Xiaomi, Oppo, and Vivo are strategically focusing on the budget segment, aiming to strengthen their presence in the segment despite the sluggish overall demand.
The rise of AI-powered smartphones is another game-changer. Samsung is at the forefront with its Galaxy S24 series, securing the top three spots among the top 10 best-selling AI smartphones in Q1 2024. The Korean giant has been launching high-tech AI-powered smartphones for gamers and tech-savvy users.
Forecasts suggest that Gen AI smartphones would lead the industry growth, capturing an estimated 19% share of the total smartphone market with approximately 234 million shipments by the end of the year.
As consumer demand for both high-end and budget smartphones increases, it will be interesting to see which brand effectively capitalizes on these opportunities and gains a sizable share of the global smartphone market. Achieving success in both segments requires a unique blend of innovation, affordability, and brand perception. The pivotal question remains: Can AI-powered smartphones truly be the saviour the industry needs? Only time will tell.
