In the competitive landscape of the global smartphone market, both Apple and Samsung have reported increased sales in Q4 2024 compared to the previous year. However, despite this growth, they are facing mounting competition from Chinese brands like Xiaomi, leading to a decline in their overall market share.
Increased Sales Amidst Rising Competition
Apple seems to be overcoming its challenges in China. Stronger performance in the Chinese market has significantly contributed to the company's fortunes in Q2 2024. According to the Wall Street Journal, iPhone shipments increased by 1.5% year over year, reaching 45.2 million units. This growth was largely driven by improved sales in China, even amid fierce competition from local brands.
Similarly, Samsung saw a year-over-year growth of 0.7%, with shipments reaching 53.9 million units. Samsung's growth is attributed to its focus on artificial intelligence (AI) and its flagship models, which have resonated well with consumers.
Market Share Dynamics
Despite the increase in shipment figures, both Apple and Samsung experienced a decline in their market share. Apple's share dropped from 16.6% in Q2 2023 to 15.8% in Q2 2024, while Samsung's share fell from 20% to 18.9% during the same period.
In contrast, Chinese firm Xiaomi has seen a substantial rise in its market share, growing from 12.4% to 14.8%. This translates to Xiaomi selling 42.3 million units, positioning it just behind Apple. Vivo, another Chinese brand, also increased its market share from 7.9% to 9.1%, with sales reaching 25.9 million units.
Strategic Timing and Future Prospects
It's important to note that neither Apple nor Samsung typically launch new phones in the second quarter. Apple, in particular, is banking on its upcoming iPhone 16 range, which features the new Apple Intelligence capabilities, to drive a significant boost in sales.
The anticipated impact of AI on smartphone sales has been echoed by chip manufacturer TSMC. Although TSMC's second-quarter results will be announced on July 17, 2024, analysts predict a 30% rise in profits driven by the increasing demand for AI processors, as reported by Reuters.
Conclusion
As the global smartphone market continues to grow, Apple and Samsung are seeing positive sales figures but facing increasing pressure from Chinese competitors like Xiaomi and Vivo. The introduction of AI features and new product lines later in the year will be crucial for Apple and Samsung to reclaim and expand their market share. The evolving market dynamics underscore the intense competition and rapid innovation that define the smartphone industry today.