Global Smartphone Market Cools Down: Q2 Production Declines, Q3 Expected to Remain Sluggish

Global Smartphone Market Cools Down: Q2 Production Declines, Q3 Expected to Remain SluggishTrendForce, a market research firm, recently released a report indicating that the global smartphone market experienced a downturn in the second quarter. The report states that global smartphone production totaled 286 million units in Q2, representing a 3% quarter-on-quarter decline

Global Smartphone Market Cools Down: Q2 Production Declines, Q3 Expected to Remain Sluggish

TrendForce, a market research firm, recently released a report indicating that the global smartphone market experienced a downturn in the second quarter. The report states that global smartphone production totaled 286 million units in Q2, representing a 3% quarter-on-quarter decline. Production volume is projected to see a slight increase to 293 million units in the third quarter, but will still show a 5% year-on-year decrease.

Q2 Market Share Ranking: Samsung Leads, OPPO Rises Strongly

According to TrendForce's data, the Q2 smartphone market share ranking is as follows:

1. Samsung: Production of 53.8 million units, market share of 18.8%, a 9.6% decline compared to the previous quarter.

2. Apple: Production of 44.1 million units, market share of 15.4%, a 7.9% decline compared to the previous quarter.

3. Xiaomi: Production of 41.8 million units, market share of 14.6%, a 1.7% increase compared to the previous quarter.

4. OPPO: Production of 35.6 million units, market share of 12.4%, a 5.3% increase compared to the previous quarter.

5. vivo: Production of 25.9 million units, market share of 9.0%, a 20.5% increase compared to the previous quarter.

6. Transsion: Production of 23.6 million units, market share of 8.2%, a 20.8% decrease compared to the previous quarter.

It's worth noting that OPPO's production includes its sub-brands OnePlus and realme, which explains its ability to surpass vivo and Transsion, achieving nearly a 10 million unit lead over vivo.

Brand Performance Analysis and Q3 Predictions

The report analyzes the market performance of each brand individually and predicts Q3 trends:

• Samsung: Expected to maintain its market leadership in Q3, but a quarter-on-quarter decline is anticipated due to the end of Galaxy S24 series shipments. Samsung's launch of a premium, thin foldable phone at the end of September is expected to drive market growth.

• Apple: Thanks to price reductions and promotions, Apple achieved a 5% year-on-year growth in Q2. Apple's overall production of new devices in 2024 is projected to reach 86 million units, a year-on-year increase of 8%.

• Xiaomi: Xiaomi achieved a 19% year-on-year growth in Q2 and is expected to see a slight increase in Q3, but will adjust inventory cautiously.

• OPPO: OPPO exhibits stable performance in the Chinese market, accounting for approximately 35% of its overall sales. 65% of its sales come from markets like India and Southeast Asia. Q3 production is expected to remain at Q2 levels.

• vivo: vivo's strong performance is attributed to its excellent performance in the Chinese market, where it accounts for 50% of its sales. vivo achieved a 10.2% year-on-year growth and a 20.5% quarter-on-quarter growth in Q2.

Q3 Market Outlook: Expectations of a Slow Season, Intensified Competition

TrendForce holds a less optimistic outlook for the overall smartphone market in Q3, expecting it to continue the downward trend from Q2. This is primarily attributed to Q3 being a traditionally slow sales season, with waning replacement demand after the 618 shopping festival and limited sales contributions from the student population. Additionally, Q4 will see the arrival of Double Eleven promotions and the concentrated release of new phones from various brands, leading to heightened market competition.

Summary

The global smartphone market experienced a downturn in Q2, with declining production and expectations of continued sluggishness in Q3. While some brands have achieved growth in specific regions or product lines, the overall market faces challenges. With increasing market competition, brands need to continually innovate and optimize their products and marketing strategies to adapt to future market changes.