In 2010, a company other than Samsung last held the top position in the global smartphone market. Fast forward to 2023, after more than a decade, Apple has taken the lead, outpacing Samsung, signaling a notable shift in power within the consumer electronics market globally. This significant change is fueled by Apple's all-time high market share a first time at the top, says a report by International Data Corporation (IDC). Apple shipped 80.5 million units in fourth quarter (Q4) of 2023 while South Korean tech giant Samsung shipped 53.0 million devices in the same period.
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Even as the global smartphone market faces challenges, there's a swift momentum towards recovery. According to preliminary data from IDC's Worldwide Quarterly Mobile Phone Tracker, 2023 witnessed a 3.2 per cent year-over-year (YoY) decline in global smartphone shipments, totaling 1.17 billion units -- the lowest in a decade.
"While we saw some strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023, stemming from rapid growth in emerging markets, the biggest winner is clearly Apple," Nabila Popal, Research Director, IDC's Worldwide Tracker team, said in a statement.
"Not only is Apple the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever. All this despite facing increased regulatory challenges and renewed competition from Huawei in China, its largest market. Apple's ongoing success and resilience is in large part due to the increasing trend of premium devices, which now represent over 20% of the market, fueled by aggressive trade-in offers and interest-free financing plans."
The dip in the smatphone market was primarily due to macroeconomic obstacles and high inventory in the early part of the year. However, a resurgence in the second half, especially evident in Q4 with an 8.5 per cent YoY growth and 326.1 million shipments, surpassing the forecasted 7.3 per cent growth, has solidified expectations for recovery in 2024.
"The overall shift in ranking at the top of the market further highlights the intensity of competition within the smartphone market," said Ryan Reith, Group Vice President with IDC's Worldwide Mobility and Consumer Device Trackers.
"Apple certainly played a part in Samsung's drop in rank, but the overall Android space is diversifying within itself. Huawei is back and making inroads quickly within China, Brands like OnePlus, Honor, Google, and others are launching very competitive devices in the lower price range of the high end. And foldables and increased discussions around AI capabilities on the smartphone are gaining traction. Overall, the smartphone space is headed towards a very interesting time," Reith added.