Global Smartphone Market Enters Adjustment Period: Samsung and Apple Lead, Chinese Brands Cautious

Global Smartphone Market Enters Adjustment Period: Samsung and Apple Lead, Chinese Brands CautiousAccording to TrendForce's latest research, global smartphone production in the second quarter of 2024 reached 286 million units, down approximately 3% from the first quarter. Due to weak peak season demand, brand manufacturers have adopted a generally conservative approach in their production plans for the third quarter

Global Smartphone Market Enters Adjustment Period: Samsung and Apple Lead, Chinese Brands Cautious

According to TrendForce's latest research, global smartphone production in the second quarter of 2024 reached 286 million units, down approximately 3% from the first quarter. Due to weak peak season demand, brand manufacturers have adopted a generally conservative approach in their production plans for the third quarter. The report forecasts a slight quarter-on-quarter increase in production for the third quarter, reaching 293 million units, but still showing a decline of approximately 5% compared to the same period last year.

I. Samsung Continues to Push Foldable Phone Market, Apple's New Models Expected to Grow 8% YoY

1. Samsung

Samsung's smartphone production declined by 10% quarter-on-quarter to 53.8 million units in the second quarter due to the end of the Galaxy S24 new model inventory period, maintaining its position as the market leader. TrendForce indicates that Samsung is expected to launch a high-end thin foldable phone at the end of the third quarter, considered an extension of the Z Fold6. However, considering the price and lack of killer applications, this thinner model is expected to account for only 1% of Samsung's foldable phone production, having limited contribution to its market share pursuit.

2. Apple

Apple, ranked second in market share, produced approximately 44.1 million smartphones in the second quarter, representing a decline of 8% quarter-on-quarter but a growth of 5% year-on-year compared to 2023. This can be attributed to pre-emptive inventory preparation for the 618 e-commerce promotion in China. Due to Apple's significant price reduction strategy in the Chinese market, production is anticipated to be boosted in the third quarter. Furthermore, Apple will release four new models in September, with estimated new phone production for 2024 exceeding 86 million units, an increase of nearly 8% from last year.

II. Chinese Brands Cautiously Adjust Inventory, Transsion Market Share Declines

3. Xiaomi

Xiaomi (including Redmi and POCO) produced 41.8 million smartphones in the second quarter, representing a year-on-year increase of 19%. Although the brand maintains an optimistic market outlook, due to the lack of significant demand recovery, production targets for the third quarter have only seen a slight increase, and inventory adjustments will be cautious.

4. OPPO

OPPO (including OnePlus and realme) recorded a year-on-year production increase of 6% in the second quarter, securing fourth place in market share ranking. The report indicates that the Chinese market accounts for a stable share of approximately 35% of the brand's sales, followed by India and Southeast Asia. Looking ahead to the third quarter, OPPO's production targets are estimated to remain consistent with the second quarter.

5. vivo

Driven by the launch of new products and successful sales in the Chinese market, vivo (including iQOO) witnessed a quarter-on-quarter production increase of 20.5% and a year-on-year increase of 10.2% in the second quarter, placing it fifth in the market share ranking. While vivo has been actively expanding into overseas markets in recent years, the Chinese market still accounts for 50% of its sales share. TrendForce anticipates that its third-quarter production will remain on par with the second quarter.

6. Transsion

The report points out that Transsion (including TECNO, Infinix, and itel) experienced excessive production in the first quarter, resulting in increased inventory. In the second quarter, it adjusted its production to 23.6 million units, down 20.8% quarter-on-quarter, pushing its market share ranking to sixth place. Entering the third quarter, Transsion remains focused on maintaining production levels at the second quarter's performance to mitigate inventory pressure.

Summary:

The global smartphone market exhibited continued weakness in the second quarter of 2024. Some brands adjusted their production plans due to weak peak season demand, reflecting the intensified market competition and the need for brand manufacturers to exercise greater caution in inventory management. Samsung and Apple continue to maintain a leading edge, pushing forward their high-end market strategies. Chinese brands, on the other hand, display a cautious approach to inventory adjustment and steady development. In the future, the global smartphone market will continue to face challenges, and brand manufacturers must continuously innovate products and marketing strategies to gain an advantage in competition.