The global smartphone market has roared back to life, posting a robust 12% growth in the second quarter of 2024. This resurgence, fuelled by product innovation and improving business conditions, marks the third consecutive quarter of growth for an industry that had been grappling with stagnation.
According to the latest research from Canalys, smartphone shipments reached a staggering 288.9 million units worldwide in Q2. This uptick signals a potential shift in consumer behaviour and market dynamics, with all major regions experiencing growth.
Samsung maintained its pole position, shipping 53.5 million units despite a modest 1% increase. The South Korean giant’s strategy of focusing on high-end products and revamping its 5G A series has paid dividends, bolstering value growth while maintaining overall numbers.
Hot on Samsung’s heels, Apple secured the second spot with 45.6 million units shipped. The Cupertino-based company’s performance was particularly strong in North America and emerging markets in the Asia-Pacific region, suggesting a growing appetite for premium devices in diverse markets.
Xiaomi, the Chinese smartphone manufacturer, made significant strides, shipping 42.3 million units and capturing a 15% market share. The company’s competitive product offerings have clearly resonated with consumers, allowing it to narrow the gap with its larger rivals.
Vivo and TRANSSION rounded out the top five, shipping 25.9 million and 25.5 million units respectively, each securing a 9% market share. TRANSSION’s performance is particularly noteworthy, as it represents the combined efforts of its sub-brands TECNO, Infinix, and iTel.
Sanyam Chaurasia, a senior analyst at Canalys, offered insight into the strategies of the market leaders for the latter half of 2024. “Apple and Samsung will focus on solidifying their long-term strategies in mature markets,” he noted. This approach is likely to involve deepening ecosystem integration and leveraging artificial intelligence to create compelling value propositions for consumers.
Chinese brands, meanwhile, are expected to lean heavily on generative AI features to differentiate themselves in the premium segment, both domestically and globally. This push towards advanced AI capabilities could spark a new wave of innovation in the smartphone industry.
However, the road ahead is not without challenges. Toby Zhu, another senior analyst at Canalys, warned that maintaining competitive products will become increasingly difficult. “Since the end of Q1, vendors have consumed the remaining stocks of low-cost components,” Zhu explained. This situation could put pressure on mass-market brands as demand for improved specifications remains high.
Despite these hurdles, the smartphone market is projected to grow in the mid-single digits in 2024. This growth is expected to be driven by recovering inventory levels, eased import restrictions, and an improved economic climate.
Looking ahead to 2025, the focus for vendors will likely shift towards delivering innovative smartphone experiences to attract upgrade buyers, building distinctive brand images, and strengthening local operations. With consumer demand remaining uncertain, especially in mature markets, these strategies could prove crucial for continued growth.
