In a significant shift in the global smartphone market, Samsung has regained its position as the leading shipper of smartphones, according to recent data from Counterpoint Research. This change comes as the smartphone market itself saw a growth of six percent year-over-year in the first quarter of 2024, despite a downturn in shipments from rival Apple.
Samsung’s Strategic Success
Samsung’s success in the first quarter of 2024 has been largely fueled by the strong performance of its Galaxy A-series. The launch of these devices not only boosted Samsung’s sales figures but also helped the brand surpass Apple in global shipments. Samsung now accounts for 20% of the total smartphones shipped last quarter, regaining its title from Apple, which fell to 17%.
The resurgence of Samsung in the smartphone market highlights its ability to innovate and adapt to consumer demands, particularly in a competitive market landscape. This is a notable recovery from the fourth quarter of 2023, where Apple had momentarily dethroned Samsung from the top spot.
The Premium Market’s Expansion
The premium segment of the smartphone market, including devices priced above $800, has shown the fastest growth rate during the first quarter of 2024. Apple, despite its overall shipment decline, continues to benefit from this trend due to its high average sale price (ASP), which remains the highest among OEMs at $900. This pricing strategy is primarily driven by the popularity of its high-end models, the iPhone 15 Pro and iPhone 15 Pro Max.
However, Apple’s leadership in smartphone revenue is seeing challenges.
The company retained a 43% share of the market’s revenue, but this is a decrease of 11% year-over-year. Factors such as intense competition in China, record low upgrades in the U.S., and a challenging comparison from the previous year have impacted Apple’s performance, according to Jeff Fieldhack, a Research Director at Counterpoint.
Made By Samsung. Sold by most of the Tech Creators😂
Seriously, the barrage of videos I've seen on this phone from almost everyone is crazy! Only few of them mentioned in the video that's it's a collab. Almost feel like buying and checking if it's actually even worth 35k. pic.twitter.com/QN1Q0qlUm6— Nimit (@gizmoddict) May 5, 2024
Global Trends and Future Outlook
The overall growth in the smartphone market can also be attributed to the success of brands like Xiaomi, TECNO, Honor, and Huawei, particularly in markets outside of North America. Xiaomi, for instance, saw a remarkable increase in shipments, growing by 34% from the previous year.
Looking forward, the analysts at Counterpoint are optimistic about the continuation of growth in the premium smartphone segment. This optimism is bolstered by the anticipated introduction of new phones featuring generative AI technology. With predictions that 11% of smartphones shipped this year will include generative AI capabilities, the market is on the brink of another technological leap, especially if brands like Apple, Google, and Samsung integrate these features in their upcoming models.
Conclusion: A Dynamic and Competitive Landscape
As the global smartphone market continues to evolve, Samsung’s recent performance highlights its resilience and ability to capitalize on strategic opportunities. With the expected technological advancements and the ongoing competition among leading OEMs, the smartphone industry is set to remain dynamic and fiercely competitive. The shifts in consumer preferences and technological innovations will undoubtedly shape the future of this vibrant market.
