Smartphone Market Recovers: Samsung Leads, Apple Chases, AI Phones Rise!

Smartphone Market Recovers: Samsung Leads, Apple Chases, AI Phones Rise!As we reach mid-October, the third quarter of 2024 has officially come to a close, and market research reports are beginning to be released. According to the latest report from research firm Counterpoint Research, global smartphone sales grew 2% year-over-year in the third quarter of 2024

Smartphone Market Recovers: Samsung Leads, Apple Chases, AI Phones Rise!

As we reach mid-October, the third quarter of 2024 has officially come to a close, and market research reports are beginning to be released. According to the latest report from research firm Counterpoint Research, global smartphone sales grew 2% year-over-year in the third quarter of 2024. This marks the first year-over-year growth in the third quarter since 2018 and is also the fourth consecutive quarter of growth for the global smartphone market, indicating a steady recovery.

While growth has slowed slightly compared to previous quarters, the market remains stable due to continued consumer confidence and macroeconomic factors that have been better than last year. Referencing previous reports, the global smartphone market has already begun to rebound and recover since the fourth quarter of 2023. In this trend, the global smartphone market is expected to continue its positive growth this year and complete a turnaround.

Brand Competition: Samsung Leads, Apple Chases

Looking at the performance of individual brands, Samsung continues to lead the global smartphone market with a 19% market share, similar to the market share in the same period in recent years. This is attributed to the continued demand for its mid-range A-series devices and strong sales of the S24 series flagship models. However, the foldable series devices, which Samsung had high hopes for, performed underwhelmingly and did not generate the anticipated sales boom.

Apple ranks second with a 16% market share, seeing a 1% increase in sales and becoming the world's top-selling brand in September, driven by the release of the iPhone 16.

Xiaomi cemented its position in the top three with a 14% market share and an 8% year-over-year sales increase. Xiaomi achieved its fourth consecutive quarter of year-over-year growth and briefly held the second spot in August.

OPPO ranks fourth with a 9% market share and achieved its best sales since the third quarter of 2023. Vivo enters the top five with a 9% share and a 10% year-over-year growth. Its performance outperformed its competitors, seeing the fastest year-over-year growth in the third quarter.

Market Trends: Extended Replacement Cycle, AI Phones Rise

Beyond the varying developments of individual brands, the overall smartphone market is undergoing new shifts. Compared to the past, smartphone users are now extending their replacement cycles. Smartphone sales are slowing down due to prolonged ownership periods and a maturing consumer base.

However, simultaneously, driven by the advancement of new technologies like AI, smartphone prices are increasing, and more users are willing to spend more on purchasing phones. This has led to value growth in the industry. According to this report, one-fourth of consumers who purchased a smartphone in 2024 spent over $600.

Another report from Counterpoint Research echoes a similar point: smartphones with generative AI capabilities will catalyze additional growth this year. As user awareness of generative AI devices grows, smartphone manufacturers will increasingly integrate generative AI features. The share of smartphones supporting generative AI is projected to increase from less than one-fifth in 2024 to more than half in 2028.

Future Outlook: High-End Market Continues to Expand

Overall, the smartphone market is recovering after a period of decline, and high-end smartphone products will receive more user attention and continue to expand their user base. This is good news for smartphone brands that continue to push into the high-end market.

In the future, as AI technology continues to evolve, smartphone functionalities will become increasingly powerful, and user experiences will continue to improve. We believe the smartphone market will see new development opportunities in the coming years.