The worldwide smartphone sector has maintained its restoration momentum, recording notable will increase in shipments in addition to revenues throughout the first quarter of 2024, in response to a number of analyst firms, which have every revealed their evaluation of the state of the worldwide market throughout the first three months of the yr.
Whereas their figures diverse barely throughout the board, the analyst teams had been united in concluding that the market is lastly therapeutic following a interval of contraction and that the present optimistic momentum is prone to persist all year long.
In response to Counterpoint Analysis, world smartphone market revenues grew by 7% yr on yr, reaching their highest ever first-quarter degree. Whereas a particular determine for that whole income was not disclosed, the corporate estimated that Apple was answerable for a 41% share of the full market worth, adopted by Samsung with an 18% share, Xiaomi and Oppo with a 6% share every, and Vivo with a 4% share.
Based mostly on Apple’s first-quarter revenues of just about $46bn from its iPhone product line, that might worth the worldwide smartphone sector at about $112bn.
The analyst agency steered that the rise in revenues was because of quick progress in gross sales of extra premium gadgets (these with a value of greater than $800), with that section registering a double-digit progress and representing 18% of all smartphone shipments within the first quarter.
When it comes to world shipments, Counterpoint Analysis estimated there had been a 6% year-on-year enhance within the interval, to 296.9 million items. This, it acknowledged, was pushed primarily by “robust efficiency” in key areas, corresponding to Europe, Center East and Africa (MEA), and the Caribbean and Latin America (CALA).
Estimations from one other analysis home, Omdia, painted a barely extra bullish image of the market: It discovered that world smartphone shipments climbed 11.6% yr on yr to 300.4 million items, and steered this was because of the market stabilising after a interval of turbulence, which noticed robust demand between the final quarter of 2020 and the third quarter of 2021, adopted by provide chain points in 2022.
Within the opening three months of 2024, many smartphone distributors recorded “massive double-digit year-on-year progress”, together with Xiaomi, Honor, Motorola and Realme, in response to Omdia. Within the case of Transsion and Huawei, the expansion went as hight as triple digits, it acknowledged.
Echoing preliminary knowledge beforehand shared by IDC, the analyst firms named Samsung the highest vendor globally within the interval by way of items shipped, with a 20% market share.
Beforehand the most important participant, Apple fell to second place because of headwinds in key markets corresponding to China. “China is a crucial marketplace for Apple with the second-largest cargo quantity after the USA. Nonetheless, Apple has been going through intense competitors from Huawei within the premium section of the Chinese language native market for the reason that second half of final yr, which has contributed to disappointing iPhone shipments within the first quarter. Efficiency within the Chinese language market shall be an necessary think about figuring out Apple’s total shipments this yr,” commented Jusy Hong, senior analysis supervisor for Omdia’s smartphone group.
The function of AI
The combination of AI capabilities into shopper gadgets, one thing that Samsung did in the beginning of this yr with its Galaxy S24 collection, is a development with the potential to deliver vital shifts available in the market.
In response to Sanyam Chaurasia, senior analyst at Canalys, distributors this yr will concentrate on exploring methods to commercialise the generative AI (GenAI) wave, which is “important for all gamers inside the system ecosystem”.
“The evolution of on-device AI options for smartphones relies upon closely on strategic alliances amongst manufacturers, chipset suppliers and software program corporations. Distributors will search for open collaboration with business leaders to deliver distinctive and personalised AI options to finish customers. In the long run, distributors will look to deliver these AI options to mid-range value bands so as to add extra customers to their native AI ecosystems.
“Moreover, ecosystem growth through cross-device integration and strategic partnerships boosts income potential, highlighting the profound influence of on-device AI on consumer experiences and model profitability,” Chaurasia defined.
– Yanitsa Boyadzhieva, Deputy Editor, TelecomTV