Samsung, Apple Maintain Top Spots as Smartphone Competition Heats Up

Despite a challenging global economic climate, the smartphone industry continued to demonstrate resilience in the second quarter of 2024. According to the latest data from International Data Corporation (IDC), the overall market experienced a modest growth of 6.5% compared to the same period last year. While the industry as a whole showed signs of recovery, the competitive landscape remained fiercely contested, with Samsung and Apple solidifying their positions as the top two smartphone vendors.

According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, global smartphone shipments increased 6.5% year over year to 285.4 million units in the second quarter of 2024 (2Q24). Although this marks the fourth consecutive quarter of shipment growth and builds the momentum towards the expected recovery this year, demand has yet to come around in full and remains challenged in many markets, IDC disclosed.

Samsung retained its crown as the global market leader, capturing 18.9% share of shipments of the market share with shipments totaling 53.9 million units. The South Korean tech giant’s continued focus on flagship models and a robust AI strategy contributed to its sustained success. Apple closely followed, securing 15.8% of the market with 45.2 million units shipped. The iPhone maker’s premium positioning and strong brand loyalty enabled it to maintain its dominance in the high-end segment.

The combined market share of Samsung and Apple underscores the duo’s enduring influence on the smartphone industry. However, the competitive landscape beyond the top two is far from static. Chinese brands such as Xiaomi, Vivo and OPPO have made significant strides, expanding their global footprint and capturing a growing share of the market. These companies have successfully tapped into the demand for affordable yet feature-rich smartphones, appealing to a broader consumer base.

Xiaomi placed third in 2Q24 with 14.8% share while vivo and OPPO tied for the fourth position with 9.1% and 9.0% share respectively. Xiaomi and vivo both saw double-digit growth with strong performances in emerging markets and China with 42.3 millions units and 25.9 millions units shipped  respectively, while OPPO’s 1.8% growth of 25.8 millions units was due to a successful ongoing expansion outside China. Other smartphone brands contribute to the 92.1 millions unit.

As competition increases, IDC expects a very positive and interesting second half of the year with a tight race among the leading OEMs.

Moreover, the rise of emerging markets has created new opportunities for smartphone vendors. Consumers in these regions are increasingly adopting smartphones, driving overall market growth. This presents both challenges and opportunities for established players as they compete for market share with local and regional brands.

Looking ahead, the second half of 2024 is expected to be a pivotal period for the smartphone industry. The anticipated launch of more Gen AI-powered smartphones has the potential to disrupt the market and drive significant growth. As consumers become more discerning in their device choices, manufacturers will need to invest heavily in research and development to stay ahead of the curve.

While the overall market is showing signs of recovery, challenges such as supply chain disruptions and economic uncertainties persist. The ability of smartphone vendors to navigate these obstacles and adapt to evolving consumer preferences will be critical to their long-term success.