Independent analyst country Canalys recorded a 10 per cent year-on-year growth in global smartphone shipments in Q1 2024.
It said that a total of 296.2 million units were, and the double digit percentage growth in shipments was the first in ten quarters.
Samsung dominated the market regaining the lead position, shipping 60 million units, buoyed by updates to its A-series and premium offerings. In comparison, it shipped a marginal 1 per cent of more smartphones – 60.3 million units – in Q1 2023.
Apple slipped to second spot, shipping 48.7 million units, as it experienced a more than 16 per cent decline compared to the 58 million units it shipped in Q1 2023
Xiaomi maintained third place with 40.7 million shipments in the first quarter of this year, while TRANSSION and OPPO rounded out the top five, shipping 28.6 million and 25 million units respectively.
In terms of market share of overall smartphone shipments in Q1 2024, Samsung cornered a leading figure of 20 per cent, followed by Apple at 16 per cent, Xiaomi at 14 per cent, TRANSSION at 10 per cent and OPPO at 8 per cent.
According to Canalys research, the worldwide smartphone market experienced a 10% year-on-year growth in Q1 2024, reaching 296.2 million units. The market performed better than expected, reaching double-digit growth after ten difficult quarters.
“Samsung’s S24 launch reflects a pivotal moment in its AI and premium strategy, with the potential to reshape the industry,” said Canalys Senior Analyst Sanyam Chaurasia. “Compared to last year’s S23 release, Samsung launched the Galaxy S24 a month earlier and shipped 13.5 million units, a 35 per cent year-over-year shipment growth vs its predecessor in Q1. The pull factor from Galaxy AI, the large scale of retail points elevating the customer experience, and a better time-to-market strategy, drove the strong performance of the Galaxy S24.”
Chaurasia notes that Samsung’s latest strategy besides focusing on premium positioning, also signals a broader shift in the smartphone industry towards AI-driven innovation. “Samsung will look to leverage its early momentum by crafting compelling value propositions for users with Galaxy AI; solidifying premium competitiveness and fostering brand stickiness,” said Chaurasia.
While Samsung and Apple operate at the top end of the market, Xiaomi, TRANSSION and OPPO all operate lower down. “Mass-market brands are riding the wave of emerging markets rebounding, while cautiously stocking components,” said Canalys analyst Runar Bjørhovde. “With improved inventory conditions at the outset of 2024, these brands have driven strong performances with their portfolio refreshes. Vendors such as Xiaomi and TRANSSION experienced robust year-over-year growth of 33 per cent and 86 per cent respectively, driven by strong shipments of their latest models into the Middle East, Africa, and Latin America markets. These brands are ramping up production and stockpiling raw materials in anticipation of further increases in Bill of Materials (BoM) costs.”
Already, AI-enabled smartphones are set to power the next phase of growth in the sale of smartphones. The share of GenAI-equipped smartphone shipments to overall smartphone shipments will reach 11 per cent by 2024 and 43 per cent by 2027 to pass 550 million units in 2027, a nearly 4X growth.
“Exploring avenues to commercialize the generative AI wave remains critical for all players within the device ecosystem,” adds Chaurasia. “The evolution of on-device AI solutions for smartphones depends heavily on strategic alliances among brands, chipset providers, and software firms. In the long-term, vendors will look to bring these AI features to mid-range price bands to add more users to their native AI ecosystems.”
Sales of Apple’s iPhones seem to be struggling in some key markets. ChannelNews recently reported that sales of their iPhones crashed 19 per cent in China in Q1 2024.
Here in Australia, Samsung’s market position will be challenged by other strong contenders beyond Apple such as Motorola. This week, the Lenovo-owned business announced two new devices – Edge 50 Fusion and Edge 50 Pro – which will be noteworthy competitors to the new Samsung Galaxy S24.
