The Global Smartphone Market Returns to Growth: Opportunities for Chinese Manufacturers, AI Smartphones Become the Focus

The Global Smartphone Market Returns to Growth: Opportunities for Chinese Manufacturers, AI Smartphones Become the FocusAfter years of market slump, the smartphone industry finally saw a turnaround in 2024. According to the latest report from market research firm Canalys, global smartphone shipments reached 288

The Global Smartphone Market Returns to Growth: Opportunities for Chinese Manufacturers, AI Smartphones Become the Focus

After years of market slump, the smartphone industry finally saw a turnaround in 2024. According to the latest report from market research firm Canalys, global smartphone shipments reached 288.9 million units in the second quarter of 2024, a 12% year-on-year increase, marking the third consecutive quarter of growth. This trend not only indicates an expanding market size but also signals new growth opportunities for the smartphone industry, especially for Chinese phone manufacturers.

Market Returns to Growth, Opportunities and Challenges Coexist

The return to growth in the global smartphone market has injected a shot of confidence into the entire industry. The expansion of the market size means that phone manufacturers will have greater room for growth, allowing them to dedicate more resources to technological research and development, as well as expanding into new market segments like foldable phones.

However, the market recovery is accompanied by intensifying competition. Samsung still holds the top spot in global market share, but its lead is gradually shrinking. Apple remains firmly in second place with its strong brand and product power. Xiaomi comes in close behind, securing a firm third place with its strong performance in the mid-to-low-end market. Additionally, Chinese phone manufacturers like vivo and Transsion are demonstrating strong growth momentum and starting to penetrate overseas markets.

Chinese Phone Manufacturers: Core Competitiveness and Advantages in New Product Categories

Ultimately, the beneficiaries of the growth in the global smartphone market will be Chinese phone manufacturers. This is primarily attributed to two key advantages:

1. Core Competitiveness Advantage:

Chinese phone manufacturers have accumulated extensive experience and technological advantages in areas like performance, photography, and battery life. In terms of performance, Chinese phone manufacturers are leading the way in chip performance enhancement, heat dissipation materials, and body structure optimization. In photography, Chinese phone manufacturers excel in exposure capabilities and interactive logic. In battery life, Chinese phone manufacturers possess unique advantages in fast charging technology.

With the global market recovering, Chinese phone manufacturers will have more opportunities to leverage these advantages and showcase the superior user experience of Chinese phones to consumers abroad.

2. New Product Category Advantages:

Foldable phones and AI phones are significant directions for future smartphone development, and Chinese phone manufacturers have established a lead in both areas.

a. Foldable Phones:

According to Counterpoint data, global foldable phone growth reached a staggering 49% in the first quarter of 2024. Chinese phone manufacturers have performed exceptionally well in the foldable phone segment, with Huawei surpassing Samsung to become the global sales leader in foldable phones.

b. AI Phones:

While there are no statistics on AI phones yet, market trends indicate that mainstream products in the Chinese market are widely equipped with AI assistants, enabling features like AI call summarization. In comparison, Apple and Samsung's AI phone capabilities are still in their infancy.

The Future Path for Chinese Phone Manufacturers: Enhancing User Stickiness and Building Core Competitiveness

In the fiercely competitive smartphone market, Chinese phone manufacturers should focus on enhancing user stickiness and building core competitiveness.

1. Enhancing User Stickiness:

Chinese phone manufacturers should prioritize product experience and user service, offering more personalized and intelligent services to users, establishing deeper and more lasting user relationships.

2. Building Core Competitiveness:

Chinese phone manufacturers should continue to invest deeply in technological research and development, maintaining consistent investment in photography, AI, and ecosystems, creating their own moats and laying the foundation for future development.

Looking Ahead: Opportunities and Challenges Coexist

The return to growth in the global smartphone market presents new development opportunities for Chinese phone manufacturers. In the future, Chinese phone manufacturers will face even fiercer competition and need to continuously innovate and break through to achieve greater success in the global market.

Conclusion

The first half of 2024 saw a positive trend in the smartphone industry, with Chinese phone manufacturers holding a significant position in the global market thanks to their core competitiveness and advantages in new product categories. In the future, Chinese phone manufacturers need to continue to enhance user stickiness, build core competitiveness, embrace more challenges, and create an even more brilliant future.