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According to research by Canalys, the global smartphone market grew by 10% year-on-year in the first quarter of 2024 to reach 296.2 million units. The market performed better than expected, achieving double-digit growth after ten difficult quarters. The surge was mainly due to the launch of new portfolios by suppliers and macroeconomic stabilization in emerging market economies.
Thanks to the updated A-series and early high-end products, Samsung regained its leading position, with shipments reaching 60 million units. Apple slipped to second place with 48.7 million units shipped, experiencing a double-digit decline amid headwinds in its core markets. Xiaomi is in third place with 40.7 million units shipped and a 14% market share. Transsion and OPPO are the top five, with shipments of 28.6 million units and 25 million units, respectively, with market shares of 10% and 8%, respectively.
"The launch of the Samsung S24 reflects a pivotal moment in its AI and premium strategy and has the potential to reshape the industry," said Sanyam Charathia, senior analyst at Canalys. Compared to the S23 released last year, Samsung launched the Galaxy S24 a month ago with 13.5 million units shipped, a 35% year-over-year increase in shipments compared to the first quarter. The Galaxy S24's strong performance was driven by the pull factor of Galaxy AI, large-scale retail outlets that enhanced the customer experience, and a better time-to-market strategy. In addition to enhancing Samsung's high-end positioning, it also marks a broader shift in the smartphone industry towards AI-driven innovation. Samsung will capitalize on its early momentum to create a compelling value proposition for users with Galaxy AI, solidify its premium competitiveness, and build brand stickiness. ”
Runar Bjørhovde, analyst at Canalys, said: "Mass-market brands are riding the wave of the rebound in emerging markets while stockpiling parts carefully. With inventory conditions improving in early 2024, these brands drove strong results by updating their product portfolios. The latest phones from manufacturers such as Xiaomi and TRANSSION saw strong shipments in the Middle East, Africa and Latin America, with year-on-year growth of 33% and 86%, respectively. Notably, in addition to the continued stability in emerging markets, these brands are ramping up production and raw material reserves to cope with further increases in bill-of-materials (BoM) costs. These brands will keep a close eye on demand and pass on the rising costs to consumers, increasing the overall average selling price. ”
"In 2024, suppliers will maintain a cautious stance, focusing on share, inventory management, and supply chain optimization. At the same time, exploring ways to commercialize the generative AI wave remains critical for all players in the device ecosystem. The development of AI solutions for smartphones largely depends on strategic alliances between brands, chipset vendors, and software companies. Vendors will seek open collaborations with industry leaders to bring unique and personalized AI solutions to end users. In the long run, vendors are bringing these AI capabilities into the mid-range price range, adding more users to their native AI ecosystem. In addition, ecosystem expansion through cross-device integrations and strategic partnerships boosts revenue potential, highlighting the far-reaching impact of on-device AI on user experience and brand profitability. ”