Smartphone Market Grew 6 Percent in 1Q24

Global smartphone shipments increased 6% in the first quarter of 2024, according to the latest research from Counterpoint Research’s Market Monitor service. The growth is mostly attributed to the strong performance in key regions such as Europe, the Middle East and Africa (MEA), and Caribbean and Latin America (CALA).

“Smartphone shipments grew during the first quarter as emerging markets continued their strong momentum, while Europe, especially Central and Eastern Europe, grew the most compared to a difficult Q1 2023. Consumer demand in these markets has been growing gradually and the inventory levels have improved. MEA was the fastest-growing region due to the strong shipments of TECNO, Xiaomi, and HONOR. China also grew YoY owing to strong Lunar New Year sales and Huawei’s comeback. The Indian market also saw growth thanks to exiting 2023 with healthy inventory levels. The mature markets of North America and Japan declined relative to the same period in 2023,” said Prachir Singh, Senior Analyst at Counterpoint Research.

Global smartphone revenues grew by 7% and reached the highest ever in the first calendar quarter. The >$800 price segment was the fastest growing, registering double-digit growth and accounting for 18% of smartphone shipments, up by 2pp compared to 1Q23. Apple led the smartphone market revenues with a 43% share, although its revenues declined by 11%. Samsung’s revenues grew 2%, propelled by its increasing ASP while shipments remained flat. Among the top five OEMs, Xiaomi’s revenue growth was the fastest due to strong performance in its key markets. Revenues for the market beyond the top five OEMs also grew significantly, driven by increasing revenues from Huawei, HONOR, and Transsion brands.

“Tough competition in China, record low upgrades in the US, and a difficult compare from last year due to iPhone 14 Pro’s supply shifting to 1Q23 all weighed on iPhone performance. However, there were upsides as well. An improved product mix with 15 Pro’s performing better than its predecessors, and an increasing footprint in emerging markets helped Apple in arresting some of the declines. Emerging markets especially provide long-term growth opportunities. We also expect the inclusion of GenAI later this year to contribute to iPhone upgrades” said Jeff Fieldhack, Research Director at Counterpoint Research.

Samsung re-captured the top spot and led global smartphone shipments during the quarter. Korean company reached its highest-ever ASP during the quarter as well. Among the biggest smartphone brands from China, Xiaomi and vivo registered growth. While Xiaomi registered growth in almost all its key markets, vivo posted a strong performance in emerging markets of Asia Pacific including India. Huawei, HONOR, and Transsion were the other key brands that gained during the quarter. Huawei made huge gains in China and won a share of the leading brands. OPPO experienced a shipment decline due to stiff competition in key markets like China. The brand also prioritized value over shipments, with a shift to pushing higher ASP devices in emerging markets.

“Growth is expected to be slow but steady in the near term. However, revenues are expected to grow faster as the ongoing premiumization trend is likely to persist, especially with the rise of newer form factors and capabilities such as foldables and GenAI. More than 10 OEMs have launched over 30 GenAI-capable smartphones so far. We estimate that GenAI’s share of overall smartphone shipments will reach 11% by 2024,” said Tarun Pathak, Research Director at Counterpoint Research.