• Thursday, May 23, 2024
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Smartphone market sustains recovery amid economic downturn

Smartphone market sustains recovery amid economic downturn

The International Data Corporation (IDC) has disclosed that global smartphone shipments increased in the first quarter of 2024, marking the third quarter of upward growth.

The data insight firm suggested a global recovery amid macroeconomic challenges in its preliminary Worldwide Quarterly Mobile Phone Tracker data.

It said, “Global smartphone shipments increased 7.8 percent year over year to 289.4 million units in the first quarter of 2024. While the industry is not completely out of the woods, as macroeconomic challenges remain in many markets, this marks the third consecutive quarter of shipment growth, a strong indicator that a recovery is well underway.”

Nabila Popal, research director with IDC’s Worldwide Tracker team, explained that the smartphone market was emerging from the turbulence of the last two years.

“Firstly, we continue to see growth in value and average selling prices (ASPs) as consumers opt for more expensive devices, knowing they will hold onto their devices longer. Secondly, there is a shift in power among the Top 5 companies, which will likely continue as market players adjust their strategies in a post-recovery world,” Popal said.

The firm also announced that Samsung overtook Apple as the smartphone brand with the highest shipment and market share in Q1 2024

According to data from the IDC, the phone brand now has a 20.8 percent market share.

“While Apple managed to capture the top spot at the end of 2023, Samsung successfully reasserted itself as the leading smartphone provider in the first quarter,” Ryan Reith, group vice president at IDC’s Worldwide Mobility and Consumer Device Trackers, said.

IDC disclosed that Samsung’s global shipment was 60.1 million in Q1 2024, while Apple’s was 50.1 million in the same period. Other smartphone brands, like Xiaomi, had shipments of 40.8 million, Transsion was 28.5 million, and Oppo was 25.2 million.

Reith stated that although the two telephone giants are expected to maintain their hold on the market, the resurgence of brands like Huawei, Xiaomi, Transsion, and Vivo will cause both to seek expansion opportunities.

“While IDC expects these two companies to maintain their hold on the high end of the market, the resurgence of Huawei in China, as well as notable gains from Xiaomi, Transsion, OPPO/OnePlus, and vivo will likely have both original equipment manufacturers (OEMs) looking for areas to expand and diversify. As the recovery progresses, we’re likely to see the top companies gain share as the smaller brands struggle for positioning,” Reith noted.