According to a report by Counterpoint Research, global smartphone sell-through volumes grew 6 per cent year-on-year (YoY) in the second quarter (Q2) of 2024 to record the highest YoY growth in last three years. This was the third consecutive quarter of market growth, driven by improving consumer sentiment and macroeconomic factors.
The report mentioned that Europe and Latin America (LATAM) markets grew the fastest in Q2 2024, both recording high double-digit YoY growth numbers, as consumer sentiment and purchasing activity continued to improve compared to 2023 levels. In China, Huawei’s comeback and an early start to 618-shopping festival ensured the continuation of gradual recovery. Emerging markets, especially in LATAM and Asia, performed better than mature markets.
As per the report, the top five brands remained the same as in earlier quarters. Samsung retained the top spot in Q2 2024, helped by strong sustained sales of the artificial intelligence (AI)-focused Galaxy S24 series and an early refresh of the popular Galaxy A series, whose models emerged as the bestsellers in entry-level to mid-price bands. Samsung also led the sales of generative AI (GenAI)-capable android smartphones and is expected to further capitalise on it with its new-generation foldables.
The report highlighted that Apple’s global sales remained flat but recorded strong YoY growth in Europe and LATAM, which compensated the low upgrade rates in the US and share loss in China following Huawei’s rise. However, Apple saw improvement in sales in China during the 618-shopping festival where it offered attractive discounts. In second half (H2) of 2024, the new iPhones with Apple Intelligence are expected to drive upgrade demand.
The report stated that Xiaomi was the fastest growing top-five brand in Q2 2024, growing 22 per cent. The popularity of Redmi 13 and Note 13 series coupled with a leaner product portfolio and a stronger premium push helped Xiaomi gain a net approximate of 2 per cent share YoY in Q2 2024. vivo also outperformed the market and took the top spot in the world’s two biggest smartphone markets, China, and India, in Q2 2024. OPPO, coming close behind vivo, rounded off the top five. OPPO is focusing on increasing profitability, including by launching more devices in mid-to-higher-price bands to align its strategy with premiumisation. This choice may result in challenges in market shares in the short term, however, can lead to better profitability for the brand.
In addition, the cumulative share of the top five brands came down YoY in Q2 2024 due to pressure from surging brands like Huawei, HONOR, Motorola and Transsion group brands. Further, the share of top ten brands touched nearly 90 per cent, pointing towards market consolidation and intensive competition among the top ten. While Huawei has made significant gains in China, HONOR and TECNO have been expanding to more regions. Furthermore, Motorola has gained quickly across regions to move up two ranks from last year and reach its highest ever quarterly global smartphone market share in a decade.
Commenting on the report, Tarun Pathak, research director, Counterpoint Research, said, “The growth in smartphone sales over the last three quarters is good news for the industry. The sales were at the lowest point in a decade in 2023. However, the market was quick to rebound, thanks to improving consumer sentiments and inventory positions. Almost all markets exhibited signs of growth and we remain optimistic for upcoming quarters. Brands were quick to react to the growing consumer demand and refreshed their portfolios to entice customers further. We are seeing increased proliferation of several features such as colour-material-finish (CMF), high-megapixel cameras and 5G into lower price bands, which is further expected to fuel demand. We remain optimistic on future quarters and expect the market to show 4 per cent growth in 2024.”
Meanwhile, Ankit Malhotra, senior analyst, Counterpoint Research, said, “The global smartphone market has entered a new era, one of slow and steady volume growth driven largely by replacement cycles and is now a zero-sum game between original equipment manufacturers (OEMs). We expect smartphone volumes to grow slowly in coming years, However, we expect revenues to grow faster than sales driven by the premiumisation across regions, especially with the rise of newer form factors and capabilities, like foldables and GenAI.”
