According to recent research by International Data Corporation (IDC), Apple, at the dawn of 2024, stumbled from its leading spot in the worldwide smartphone industry as sales of iPhones saw a 10% loss. This was largely due to the swift development of cost-effective competition emerging from China, such as Xiaomi. Consequently, Samsung reclaimed its title as the global leader in smartphone production for Q1 of 2024, just three months following Apple’s obtaining its unprecedented first place.
A 10% decline in worldwide shipments of the iPhone, resulting in just over 50mn units shipped in Q1 2024, was perceived by the IDC, thereby allocating Apple 21% of the market share. In contrast, Samsung, who announced the release of their flagship Galaxy S24 phone in early January, had a 23% share after a drop of barely 1% year on year, amounting to just over 60 million shipments.
In the world’s largest smartphone market, Apple’s difficulties were notably evident with the outstanding growth rates achieved by two Chinese competitors. Xiaomi sales witnessed a 34 per cent hike, bringing its market share to 14 per cent. This surge was partly attributed to the extensive coverage received for its electric car launch.
Another noteworthy rise was seen by Transsion, the parent company of Tecno, Itel, and Infinix brands, leading the charge by being the world’s fastest-growing smartphone manufacturer. With an impressive 85% growth in shipments equaling 25.2mn units, Transsion established its position as Africa’s top smartphone producer and the fourth global spot, surpassing its longstanding Chinese competitor Oppo. The Shenzhen-based company is strategically targeting Southeast Asia and entering the premium market with a foldable phone.
Nabila Popal, a research director from IDC, pointed out an evident power shift within the top echelon of smartphone manufacturers, suggesting that the impressive comebacks from Xiaomi coupled with Transsion’s ambitious expansion plan are factors that likely will perpetuate.
In contrast to Apple’s position, IDC reported an 8% increase YoY in global smartphone shipments, marking it as the third consecutive growth quarter. This broader recovery in the industry has largely bypassed Apple so far, whose shares have depreciated roughly 5% in the same year, whilst its major technological adversaries reported significant double-digit percentage increases in their stocks.
The theory behind the auto-enrolment pension scheme appears sound, yet its real-world application remains to be seen. Meanwhile, Apple is witnessing a decline in iPhone sales in China, despite a growing trend for consumers to invest in pricier gadgets in the hope of extended longevity. The American company is contending with stiff competition from Huawei, its fierce rival in the high-end market, and China’s government is supressing usage of Apple products by its public sector employees.
Simultaneously, Apple is broadening its production base outside of China. The company’s CEO, Tim Cook, is currently on a visit to Vietnam, indicating Apple’s intent to boost its supply chain within the country. Over the recent year, several Apple suppliers like Foxconn, Quanta and Luxshare have amplified their manufacturing operations in Vietnam. – Copyright The Financial Times Limited 2024.