Global smartphone shipments saw a 6.5 percent year-on-year increase to 285.4 million units in the second quarter (Q2) of 2024, marking the fourth consecutive quarter of growth. However, demand has yet to come around in full and remains challenged in many markets.
“While recovery is well underway with the top five companies all making year-over-year gains, we are seeing increasing competition amongst the leaders and polarization of price bands,” said Nabila Popal, senior research director with IDC’s Worldwide Tracker team.
“There is lots of excitement in the smartphone market today thanks to higher average selling prices (ASPs) and the buzz created by Gen AI smartphones, which are expected to grow faster than any mobile innovation we have seen to date and forecast to capture 19 percent of the market with 234 million shipments this year,” Popal added.
Samsung ranks first
According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, Samsung captured the top position in Q2 of 2024 with an 18.9 percent share of smartphone shipments. The report attributes this growth to the company’s strategic focus on its flagships and a strong AI strategy. Meanwhile, Apple ranked second with a 15.8 percent share of smartphone shipments amidst the improvement in performance in China and other key regions. The two tech giants both saw modest annual growth.
Xiaomi ranked third in Q2 with a 14.8 percent share of smartphone shipments while vivo and OPPO tied in fourth place with a 9.1 percent and a 9 percent share, respectively. Xiaomi and vivo both saw double-digit growth with strong performances in emerging markets and China. Meanwhile, OPPO’s 1.8 percent growth was due to a successful ongoing expansion outside China. As competition increases, IDC expects a very positive and interesting second half of the year with a tight race among the leading original equipment manufacturers (OEMs).
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AI shift to transform market
“The growth in 2Q ’24 continued to provide some relief to the OEMs, though it’s partly supported by a low comparison base and the overall recovery is still at a soft pace,” said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific.
Some manufacturers took a less aggressive move amid bill of materials cost pressures, which prompted companies to refine the product specs or pricing to ensure profitability.
Nevertheless, the second quarter is more like a prelude before more Gen AI smartphones are launched in the second half of the year, which will potentially be the next growth driver after 5G and foldable,” Wong added.
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