Apple experienced a 10% decline in smartphone sales last quarter, with a significant drop in China attributed to factors such as nationalism, a challenging economy, and increased competition. Despite this setback, Apple has shown resilience in the past and has overcome supply chain issues and macro challenges better than other brands. Samsung, which had long been the top smartphone manufacturer, reclaimed the top spot from Apple, with expectations that Android will grow at twice the pace of iOS this year due to Android’s stronger decline in previous years, allowing for more room for growth.
Global smartphone shipments increased by 7.8% year over year to about 289 million devices in the first quarter of 2024, indicating a resurgence in the smartphone market after facing macroeconomic challenges for the past two years. Samsung held a 20.8% market share, followed by Apple at 17.3% and Chinese manufacturer Xiaomi at 14.1%. Apple briefly overtook Samsung in December, ending Samsung’s 12-year run as the top performer in the smartphone category, but both companies are expected to maintain their hold on the market alongside the resurgence of Huawei and other Chinese brands such as Xiaomi and OPPO/OnePlus, with Chinese consumers increasingly turning to national brands over Apple.
China has become a critical market for Apple, being the second-largest market behind the US. The company has continued to offer discounts in China to stimulate sales but faces increasing competition from Huawei and other Chinese brands. Huawei made headlines with its Mate 60 smartphone last year, showcasing advanced technology despite challenges from the US regarding national security concerns. Apple has been criticized for not articulating a strong message about artificial intelligence, a key focus area for many tech companies. Samsung, on the other hand, has embraced AI advancements in its latest flagship Galaxy S24 lineup, which could position the company well for further growth this year as the smartphone market continues to recover with a strong focus on AI.
Looking ahead, IDC expects Apple and Samsung to maintain their dominance in the smartphone market, while the resurgence of Chinese brands like Huawei, Xiaomi, and OPPO/OnePlus could pose increased competition for both companies. Popal emphasized the importance of Apple adapting to the trend of AI in tech and providing a clear message to consumers at its upcoming June developer conference. Samsung’s strong focus on AI in its recent product lineup puts the company in a good position for growth this year as the overall smartphone market continues to recover. The competition between Apple, Samsung, and Chinese brands in the smartphone market is expected to intensify, with consumers in China showing a preference for national brands over Apple.
