In the recent turn of events, Apple loses Top Phonemaker Spot to Samsung as iPhone Shipments Drop.
The latest data from research firm IDC reveals a significant shift in the global smartphone market during the first quarter of new FY25.
Apple, once perched atop the throne, has been dethroned by its fierce rival, Samsung.
Samsung trounces Apple
During January to March 2024, samsung’s global smartphone shipments surged by 7.8%, reaching a staggering 289.4 million units.
With a commanding 20.8% market share, Samsung emerged as the new top phonemaker, wresting the crown from Apple.
The iPhone-maker experienced a sharp decline, with shipments dropping approximately 10% in the first quarter. This setback followed a robust performance in the previous quarter when Apple briefly held the No. 1 position.
Lurking rivals of Apple
Chinese brands, led by Huawei, have gained ground. Apple’s retreat to second place is partly due to the ascent of these homegrown players. Xiaomi, another major Chinese player, secured the third position with a 14.1% market share. Their aggressive strategies and competitive offerings have paid off.
South Korea’s Samsung, not content with reclaiming the top spot, launched its flagship Galaxy S24 series early in the year. Resulting into over 60 million phones shipped during the period. Global sales of Galaxy S24 smartphones surged by 8%, outperforming last year’s Galaxy S23 series in the crucial initial weeks.
Obstacles for Apple
Apple faced headwinds in its third-largest market—China. A 2.1% decline in smartphone shipments during the final quarter of 2023 underscored the challenges posed by local competitors. Some Chinese companies and government agencies curtailed employees’ use of Apple devices, mirroring U.S. restrictions on Chinese apps for security reasons.
In June, Apple’s Worldwide Developers Conference (WWDC) will unveil updates to the software powering iPhones, iPads, and other devices. Investors eagerly await news on artificial intelligence development, an area where Apple has been relatively reticent.
This what the officials of IDC have to say on the latest trends
Ryan Reith, group vice president with IDC’s Worldwide Mobility and Consumer Device Trackers commented on the recent data that “As expected, smartphone recovery continues to move forward with market optimism slowly building among the top brands,”.
He also added “While Apple managed to capture the top spot at the end of 2023, Samsung successfully reasserted itself as the leading smartphone provider in the first quarter. While IDC expects these two companies to maintain their hold on the high end of the market, the resurgence of Huawei in China, as well as notable gains from Xiaomi, Transsion, OPPO/OnePlus, and vivo will likely have both OEMs looking for areas to expand and diversify. As the recovery progresses, we’re likely to see the top companies gain share as the smaller brands struggle for positioning.”
Nabila Popal, research director with IDC’s Worldwide Tracker team stated that “The smartphone market is emerging from the turbulence of the last two years both stronger and changed,“.
She also quoted “Firstly, we continue to see growth in value and average selling prices (ASPs) as consumers opt for more expensive devices knowing they will hold onto their devices longer. Secondly, there is a shift in power among the Top 5 companies, which will likely continue as market players adjust their strategies in a post-recovery world. Xiaomi is coming back strong from the large declines experienced over the past two years and Transsion is becoming a stable presence in the Top 5 with aggressive growth in international markets. In contrast, while the Top 2 players both saw negative growth in the first quarter, it seems Samsung is in a stronger position overall than they were in recent quarters.”
As the smartphone sales graph goes up and down, Samsung’s resurgence and Apple’s recalibration signal a dynamic industry. The battle for supremacy continues, fueled by innovation, market dynamics, and consumer preferences. For now, Samsung wears the crown, and apple finds itself in a situation to resort to new strategies in order to plunge to the top.
