- Apple, facing headwinds in strategic markets, came second with a 16 per cent market share.
- All eyes are on Apple in 2024, which is highly likely to make an AI announcement that would provide opportunities for the brand to drive its premium offerings and reignite product innovation across its ecosystem.
- Vivo, OPPO and Samsung aim to gain a larger share of the premium market by investing heavily in marketing and exploring new avenues for growth.
Even though Apple captured the top spot in 2023, Samsung successfully reasserted itself as the leading smartphone provider in the first quarter, driven by positive sentiment with the introduction of Galaxy AI.
Apple came second with a 16 per cent market share, facing headwinds in strategic markets such as China with the resurgence of Huawei.
Worldwide smartphone shipments grew 11 per cent year on year in the first quarter of 2024.
“The worldwide smartphone market started the year on a positive note, marking a significant improvement on the same period last year. Q1 2023 struggled due to a sluggish economy and inflationary pressures,” Canalys Analyst Le Xuan Chiew, said.
But with the economy stabilising, new product launches and strong promotional efforts, he said the market has rebounded, offering smartphone vendors an excellent opportunity to revitalise growth.
Moreover, he said that vendors are seizing new opportunities by promoting premium offerings that set them apart, such as cutting-edge AI features and services on flagship products, and using ecosystem-based product strategies.
However, he said that all eyes are on Apple in 2024, which is highly likely to make an AI announcement that would provide opportunities for the brand to drive its premium offerings and reignite product innovation across its ecosystem.
Emerging markets on radar
“The market is increasingly price-polarised. The entry-level segment is saturated, with new offerings from Xiaomi and TRANSSION. Meanwhile, vivo, OPPO and Samsung aim to gain a larger share of the premium market by investing heavily in marketing and exploring new avenues for growth,” he said.
By consistently promoting Galaxy AI, he said that Samsung has successfully boosted sales of its S24 series, which has surpassed the performance of its predecessor.
Looking ahead, he said that vendors are ramping up investments in emerging regions, such as Latin America and Southeast Asia as these markets boast a flourishing middle class, where smartphone penetration continues to rise compared with saturated markets, alongside evolving preferences for high-end models.
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.
Inventory correction
“Despite an upbeat market, it is vital that smartphone vendors keep a watchful eye on inventory levels,” Lucas Zhong, Canalys Research Analyst, said.
“With uncertain global inflationary conditions, vendors are exercising caution in inventory management to mitigate the risk of oversupply and ensure financial stability. Anticipating a slight inventory correction in the second quarter of 2024, the channel aims to digest the aggressive shipments of past quarters, making room for new launches later in the year to bring about more sustainable longer-term growth.”