Smartphone Market Polarization Intensifies: High-End and Low-End Rise, Mid-Range Brands Face Challenges

Smartphone Market Polarization Intensifies: High-End and Low-End Rise, Mid-Range Brands Face ChallengesAccording to a recent report by market research firm Omdia, global smartphone shipments reached 290.3 million units in the second quarter of 2024, up 9

Smartphone Market Polarization Intensifies: High-End and Low-End Rise, Mid-Range Brands Face Challenges

According to a recent report by market research firm Omdia, global smartphone shipments reached 290.3 million units in the second quarter of 2024, up 9.3% year-over-year but down 3.2% quarter-over-quarter. The report reveals a significant transformation in the smartphone market, with the high-end and low-end segments expanding rapidly while the mid-range market faces unprecedented challenges.

Rise of High-End and Low-End Markets

The report shows that the share of high-end and low-end smartphones increased in the second quarter, driven by several key factors. Firstly, as consumers demand more features and performance from their smartphones, high-end models are attracting a growing number of users. Secondly, low-end models are becoming more affordable, offering viable options for budget-conscious consumers.

Mid-Range Market Contraction

In stark contrast to the thriving high-end and low-end markets, the mid-range smartphone market is experiencing a contraction. Jusy Hong, Senior Research Manager at Omdia's smartphone research team, points out: "The recent smartphone market is experiencing accelerated polarization, with the mid-range segment shrinking while the share of low-end and high-end segments increases." This means that brands holding significant shares in the mid-range market are facing formidable challenges.

Brand Performance Divergence

The report also provides a detailed analysis of shipments for major smartphone brands:

• Samsung: Shipments of 53.7 million units, up 0.7% year-over-year but down 11.2% quarter-over-quarter.

• Apple: Shipments of 45.6 million units, up 5.6% year-over-year but down 10.1% quarter-over-quarter.

• Xiaomi: Shipments of 42.3 million units, up 27.4% year-over-year and up 3.7% quarter-over-quarter.

• vivo: Shipments of 26 million units, up 16.6% year-over-year and up 13% quarter-over-quarter.

• Transsion: Shipments of 25.5 million units, up 4.1% year-over-year but down 7.3% quarter-over-quarter.

• OPPO: Shipments of 25.2 million units, up 1% year-over-year but down 0.8% quarter-over-quarter.

• Honor: Shipments of 15.5 million units, up 9.9% year-over-year but down 6.1% quarter-over-quarter.

• Motorola: Shipments of 13.5 million units, up 29.2% year-over-year and up 3.8% quarter-over-quarter.

• realme: Shipments of 12.3 million units, up 21.8% year-over-year and up 21.8% quarter-over-quarter.

• Huawei: Shipments of 11.7 million units, up 58.1% year-over-year but down 10.7% quarter-over-quarter.

The data reveals that some brands are achieving success in both the high-end and low-end markets, such as Xiaomi, vivo, Transsion, Motorola, and realme, while others are facing significant pressure in the mid-range market, including Samsung, Apple, and Honor.

Future Outlook

The polarization trend in the smartphone market is expected to continue in the future. High-end brands will continue to focus on innovation and technological breakthroughs to attract high-end users, while low-end brands will compete for budget-conscious consumers by offering more competitively priced products. For mid-range brands, they need to find new growth points to address the intensifying market competition.

In conclusion, the future of the smartphone market presents both challenges and opportunities. Brands need to adapt their strategies based on market trends to succeed in an increasingly competitive environment.