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Global smartphone market rebounds ‘strongly’

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 31 Jul 2024
Smartphone vendors shipped 288.9 million devices in the second quarter of 2024.
Smartphone vendors shipped 288.9 million devices in the second quarter of 2024.

Global smartphone shipments totalled 288.9 million units in the second quarter (Q2) of 2024, growing for the third consecutive quarter.

This is based on research from market firm Canalys, which shows a 12% surge in the global smartphone market.

According to Canalys, Samsung held onto pole position with 53.5 million units shipped, while Apple and Xiaomi held onto the second and third positions, with 45.6 million and 42.3 million units shipped, respectively.

Vivo made a return to fourth place, shipping 25.9 million units, for a market share of 9%. Transsion came fifth, shipping 25.5 million units and taking a market share of 9%.

“In the second half of 2024, Apple and Samsung will focus on solidifying their long-term strategies in mature markets, while other brands will hope to boost sales in emerging markets, having stocked channels in anticipation of higher operating costs,” says Canalys senior analyst Sanyam Chaurasia.

“Samsung will inevitably focus on integrating its Galaxy ecosystem to create strong value propositions for consumers via its flagship offerings with exclusive GenAI features. Apple will look to accelerate replacement demand in these markets via its AI strategy, with hybrid models, enhanced privacy and personalised Siri features.

“Meanwhile, greater China’s growth trajectory now mirrors global markets, driven by improved macro-economic conditions and renewed business confidence among channel and smartphone brands.

“In the domestic market, local Chinese brands will use GenAI features to stand out in the premium segment, aiming to capture rising high-end spending and apply successful strategies worldwide.”

Canalys senior analyst Toby Zhu adds: “All the major regions grew in Q2, but maintaining competitive products will become increasingly challenging. Since the end of Q1, vendors have consumed the remaining stocks of low-cost components. This will pose a challenge for mass-market brands as demand for competitive specifications, such as improved storage, displays and cameras, remains high.

“To navigate this, emerging brands should refine regional strategies and optimise retail investment to balance market expansion under high operational costs. Effective channel inventory management is vital to prevent disruptions in pricing and operational losses. Following a prolonged market downturn, maintaining operational health remains a top priority for brands and channels.”

The second quarter results of global smartphone shipments in 2024.
The second quarter results of global smartphone shipments in 2024.

Zhu believes that despite seasonal demand in the second half of the year, the smartphone market is unlikely to see double-digit growth in full-year 2024.

“In the short-term, the volume driver segment is facing operational challenges, but smartphone vendors should enhance their competitiveness in the latter half of the year via targeted regional product planning.

“Overall, the smartphone market is set to grow in the mid-single-digits in 2024, driven by recovering inventory levels, eased import restrictions and a better economic climate. In 2025, with consumer demand remaining uncertain, especially in mature markets, vendors should focus on delivering innovative smartphone experiences to attract upgrade buyers, build a distinctive brand image and strengthen local operations to seize emerging opportunities.”

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