In a significant shift of fortunes, Samsung has dethroned Apple as the world’s leading smartphone manufacturer. According to data from market research firm IDC, Apple’s iPhone shipments plummeted nearly 10% year-over-year in the first quarter of 2024, allowing Samsung to regain the top spot.
The Changing Landscape
Apple’s decline comes amidst a broader rebound in the global smartphone market, which saw shipments rise by 7.8% to a staggering 289.4 million units. Samsung capitalized on this momentum, securing a 20.8% market share. Their success was bolstered by robust sales of the Galaxy S24 series, launched earlier this year. These flagship smartphones witnessed an 8% surge compared to the previous year’s Galaxy S23 series.
Apple’s Challenges
Despite its iconic status, Apple faces challenges in key markets. Here are some key factors contributing to their decline:
- China Market Woes: Apple’s struggles in China have been well-documented. The company has grappled with sustaining sales in the world’s largest smartphone market since the launch of its latest iPhone generation last September. Some Chinese companies and government agencies have even restricted employees’ use of Apple devices.
- Intense Competition: Chinese brands like Xiaomi and Huawei have gained ground. Xiaomi now holds the third position with a 14.1% market share. Apple’s direct competition from Android rivals is fierce, especially in the high-end and budget segments.
- Premium Pricing: While Apple may have sold more of its premium iPhone 15 Pro models, the decline in overall unit sales forced the company to offer unusual discounts of up to $180 off regular prices through retail partners in China.
A Shifting Landscape
“The smartphone market is emerging from the turbulence of the last two years both stronger and changed,” says Nabila Popal, research director at IDC. As consumers increasingly opt for premium handsets they plan to keep longer, average selling prices for smartphones are rising. While this trend could benefit Apple’s revenue, the company must navigate intense competition.
Apple’s adjustment strategy will be crucial in the coming quarters. Can they regain their footing and reclaim the top spot? Only time will tell, but the battle for supremacy continues between these tech giants.
