Global Smartphone Market Grows 2% in Q3, Apple Leads by Revenue, Samsung by Shipments

Global Smartphone Market Grows 2% in Q3, Apple Leads by Revenue, Samsung by ShipmentsThe latest report by Counterpoint Research shows that global smartphone shipments grew 2% year-on-year in Q3 2024, reaching 307 million units. This marks the fourth consecutive quarter of growth for the global smartphone market

Global Smartphone Market Grows 2% in Q3, Apple Leads by Revenue, Samsung by Shipments

The latest report by Counterpoint Research shows that global smartphone shipments grew 2% year-on-year in Q3 2024, reaching 307 million units. This marks the fourth consecutive quarter of growth for the global smartphone market. The report states that while the smartphone market has witnessed robust year-on-year growth in recent quarters, the key driver behind this performance is the recovery in macroeconomic conditions and consumer demand.

Looking at major markets globally, the US saw a decline in shipments year-on-year, primarily due to the continued impact of record low replacement rates. India saw a boost in year-on-year growth as smartphone brands stocked up ahead of the festive season. China also experienced year-on-year growth in Q3, fueled by the continuous improvement in the economy and consumer demand, with Huawei's resurgence being a contributing factor.

Global smartphone revenue grew 10% year-on-year in Q3 2024, reflecting a 7% increase in the average selling price (ASP), hitting a new historical high.

Key Brand Performance

Samsung continued to lead the market in terms of shipment share, capturing 19%, but experienced a 2% decline in both revenue and shipment volume year-on-year. This downturn was primarily attributed to a decline in the India and Latin America regions.

Apple topped the market in terms of smartphone revenue, with a 43% share and setting new all-time records in Q3 for revenue, shipments, and ASP. Apple's success in Q3 can be attributed to the early launch of the iPhone 16 series, a product portfolio more focused on the Pro versions, and continued expansion into non-core markets.

Xiaomi came in third, with revenue growing faster than shipments, mainly driven by an increase in the proportion of premium devices, primarily the Xiaomi 14 series. Xiaomi briefly became the world's second-largest smartphone vendor in August.

OPPO ranked fourth, but experienced a year-on-year decline in both shipments and revenue in Q3. The brand witnessed a recovery in global sales in September, growing year-on-year, with Latin America and "Rest of Asia Pacific" leading the charge.

vivo saw the most significant growth among the top five brands. It was the top smartphone vendor in both China and India during Q3.

Premiumization Trend

The market outside the top five brands witnessed a strong double-digit year-on-year increase in revenue, significantly outpacing shipment growth in Q3. Android brands like Huawei, Google, and Motorola propelled the growth for others, with Motorola achieving its highest quarterly shipments since entering the smartphone era.

The report highlights that the $400 segment saw a 2% year-on-year increase in net share in Q3 2024, driven by strong revenue growth for most major brands. The ongoing trend of premiumization across regions is encouraging smartphone vendors to re-evaluate their premium product portfolios and device financing strategies. Counterpoint expects the premiumization trend to continue in the coming years, with global smartphone ASP projected to grow at a compound annual growth rate (CAGR) of 3% between 2023 and 2028.

Summary

The global smartphone market continued its growth trajectory in Q3 2024, but growth is primarily fueled by economic recovery and the rebound in consumer demand. Apple led the market in terms of revenue, setting a new record, while Samsung continued to lead in terms of shipments. The premiumization trend persists, and global smartphone ASP is expected to continue growing in the next few years.