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Gap between top five smartphone makers narrows

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 15 Oct 2024
Smartphone market growth is being driven by resilient demand in emerging economies, says Canalys.
Smartphone market growth is being driven by resilient demand in emerging economies, says Canalys.

Global smartphone shipments grew 5% year-on-year in Q3 2024, marking a fourth consecutive quarter of growth.

This is according to the latest research from Canalys, which notes the growth is primarily driven by resilient demand in emerging economies, alongside the early stages of a replacement cycle in North America, China and Europe.

Canalys says Samsung and Apple each shipped 18% of smartphones in Q3. Xiaomi took 14% market share, maintaining its position as the third-largest smartphone vendor.

Oppo reclaimed the fourth spot on the ranking table for the first time this year, with 9% market share, supported by strong growth in India and Latin America.

Completing the top five, Vivo grew its shipments by double digits to make up 9% of the market, says the market research firm.

“Apple achieved its highest third quarter volume to date and has never been closer to leading the global smartphone market in a Q3 than now,” says Runar Bjørhovde, analyst at Canalys.

“The ongoing strong demand for the iPhone 15 series, along with Apple’s legacy models, played a crucial role in its Q3 performance.”

He points out that the market’s shift towards premium devices, intersected by an ongoing refresh cycle of devices bought during the pandemic, is benefiting Apple, particularly in its stronghold regions, such as North America and Europe.

“Apple’s improved product diversification has helped it lower lead times. Despite a modest initial reception, the iPhone 16 is expected to help Apple maintain a strong finish to 2024 and help momentum in H1 2025, particularly as Apple Intelligence expands into new markets and supports additional languages,” Bjørhovde says.

“The gap between the top five vendors has narrowed, intensifying the competitive landscape,” comments Le Xuan Chiew, analyst at Canalys.

He notes that vendors are entering the holiday shopping season with solid momentum and cautious optimism, aiming to attract consumers who have postponed upgrading their devices in anticipation of deals during major events like 11.11 and Black Friday (29 November).

“However, the importance of effective resource planning cannot be overstated. While market conditions are improving, demand remains fragile, as vendors face increasing global challenges in demand generation and regulatory hurdles, such as the EU’s eco-design directive.

“Effective supply chain management, maintaining healthy inventory levels, and optimising sales and marketing fund allocation are becoming even more critical for market leadership.”

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