According to Worldwide Quarterly Mobile Phone Tracker report by International Data Corporation (IDC), global smartphone shipments have increased 6.5 per cent year-on-year (YoY) to 285.4 million units in the second quarter (Q2) of 2024. This marks the fourth consecutive quarter of shipment growth and builds the momentum towards the expected recovery in 2024. However, the demand has yet to come around in full and remains challenged in many markets.
As per the report, Samsung has captured the top position in Q2 2024 with 18.9 per cent share in shipments because of strategic focus on its flagships and a strong artificial intelligence (AI) strategy. In addition, Apple has finished the quarter in second place with 15.8 per cent share with improved performance in China and other key regions. Both companies have seen modest YoY growth. Further, Xiaomi placed third in Q2 2024 with 14.8 per cent share while vivo and OPPO have tied for the fourth position with 9.1 per cent and 9.0 per cent share respectively. Furthermore, Xiaomi and vivo have seen double-digit growth with strong performances in emerging markets and China, while OPPO’s 1.8 per cent growth was due to a successful ongoing expansion outside China. Moreover, as competition increases, IDC expects a very positive and interesting second half (H2) of 2024 with a tight race among the leading original equipment manufacturers (OEMs).
Commenting on the report, Nabila Popal, senior research director, worldwide tracker team, IDC, said, “While recovery is well under way with top five companies all making YoY gains, we are seeing increasing competition amongst the leaders and a polarisation of price bands. As Apple and Samsung continue to push the top of the market and benefit the most from ongoing premiumisation trend, many leading Chinese OEMs are increasing shipments in the low end in an attempt to capture volume share amidst weak demand. As a result, the share of mid-range devices is challenged. However, there is lots of excitement in the smartphone market today thanks to higher average selling prices (ASPs) and the buzz created by generative AI (GenAI) smartphones, which are expected to grow faster than any mobile innovation we have seen to date and forecast to capture 19 per cent market with 234 million shipments in 2024.”
Meanwhile, Will Wong, senior research manager, client devices, IDC Asia/Pacific, said, “The growth in Q2 2024 continued to provide some relief to OEMs, though it is partly supported by a low comparison base and the overall recovery is still at a soft pace. Some OEMs took a less aggressive move in Q2 2024 amid the bill of materials (BOM) costs pressure, which prompted the companies to refine the product specs or pricing to ensure profitability. Nevertheless, Q2 2024 is more like a prelude before more GenAI smartphones are launched in H2 2024, which will potentially be the next growth driver after 5G and foldables.”
