According to a report by Canalys, the worldwide smartphone market experienced a 10 per cent year-on-year (Y-o-Y) growth in the first quarter of 2024 (Q124), reaching 296.2 million units. The market performed better than expected, reaching double-digit growth after ten difficult quarters. The surge was primarily fuelled by vendors introducing refreshed portfolios and macroeconomic stabilisation in emerging market economies. Samsung regained the lead position, shipping 60 million units, buoyed by updates to its A-series and early premium offerings. Apple slipped to second spot, shipping 48.7 million units, as it experienced a double-digit decline amid headwinds in its core markets. Xiaomi maintained third place with 40.7 million shipments and a 14 per cent market share. TRANSSION and OPPO rounded out the top five, shipping 28.6 million and 25 million units respectively, securing 10 per cent and 8 per cent market share.
Commenting on the report, Sanyam Chaurasia, senior analyst, Canalys, said, “Samsung’s S24 launch reflects a pivotal moment in its artificial intelligence (AI) and premium strategy, with the potential to reshape the industry. Compared to last year’s S23 release, Samsung launched the Galaxy S24 a month earlier and shipped 13.5 million units, a 35 per cent Y-o-Y shipment growth versus its predecessor in Q1. The pull factor from Galaxy AI, the large scale of retail points elevating the customer experience, and a better time-to-market strategy, drove the strong performance of the Galaxy S24. Beyond empowering Samsung’s premium positioning, it also signals a broader shift in the smartphone industry towards AI-driven innovation. Samsung will look to leverage its early momentum by crafting compelling value propositions for users with Galaxy AI; solidifying premium competitiveness and fostering brand stickiness.”
Meanwhile, Runar Bjorhovde, analyst, Canalys, said, “Mass-market brands are riding the wave of emerging markets rebounding, while cautiously stocking components. With improved inventory conditions at the outset of 2024, these brands have driven strong performances with their portfolio refreshes. Vendors such as Xiaomi and TRANSSION experienced robust year-over-year growth of 33 per cent and 86 per cent respectively, driven by strong shipments of their latest models into the Middle East, Africa, and Latin America markets. Notably, beyond the ongoing stabilisation in emerging markets, these brands are ramping up production and stockpiling raw materials in anticipation of further increases in bill of materials (BoM) costs. These brands will closely monitor the demand situation and will look to transfer rising costs to consumers, resulting in higher overall authorised service providers (ASPs).”
Sanyam Chaurasia added, “In 2024, vendors will maintain a cautious stance, focusing on wallet share, inventory management, and supply chain optimisation. Meanwhile, exploring avenues to commercialise the generative artificial intelligence (GenAI) wave remains critical for all players within the device ecosystem. The evolution of on-device AI solutions for smartphones depends heavily on strategic alliances among brands, chipset providers, and software firms. Vendors will look for open collaboration with industry leaders to bring unique and personalised AI solutions to end users. In the long-term, vendors will look to bring these AI features to mid-range price bands to add more users to their native AI ecosystems. Additionally, ecosystem expansion via cross-device integration and strategic partnerships boosts revenue potential, highlighting the profound impact of on-device AI on user experiences and brand profitability.”
