Apple has emerged as the leader in the global smartphone market for the year 2023, marking the first time since 2010 that a company other than Samsung has claimed the top spot.
Apple’s performance in the fourth quarter of 2023 played a pivotal role in the reshuffling of the market dynamics. The tech giant’s shipments during this period stood at 80.5 million units, indicating an 11.6 per cent year-on-year increase. Apple’s market share rose to 24.7 per cent, up from 24 per cent in the same quarter of the previous year.
This performance in Q4 solidified Apple’s position as the annual leader in the smartphone market, overcoming challenges such as increased regulatory scrutiny and renewed competition from Huawei in China, its largest market.
Contrastingly, Samsung faced a decline in both shipments and market share during the fourth quarter of 2023. Samsung’s shipments totaled 53 million units, reflecting a 10.9 per cent decrease compared to the same period in 2022. The company’s market share slipped to 16.3 per cent, down from 19.8 per cent in the fourth quarter of the previous year.
According to an International Data Corporation (IDC report), global smartphone shipments experienced a 3.2 per cent year-over-year decline, reaching 1.17 billion units for the year, which is the lowest volume in a decade.
But despite facing macroeconomic challenges and elevated inventory issues earlier in the year, the smartphone market showcased signs of recovery in the second half of 2023. The fourth quarter witnessed an 8.5 per cent year-over-year growth, with total shipments reaching 326.1 million units, surpassing the forecasted 7.3 per cent growth.
Nabila Popal, research director at IDC’s Worldwide Tracker team, highlighted the industry’s landscape, acknowledging the strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023.
“Not only is Apple the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever. All this despite facing increased regulatory challenges and renewed competition from Huawei in China, its largest market. Apple’s ongoing success and resilience is in large part due to the increasing trend of premium devices, which now represent over 20 per cent of the market, fueled by aggressive trade-in offers and interest-free financing plans,” said Popal.
The overall dynamics of the smartphone space indicate diversification within the Android segment, with Huawei making a swift comeback in China, and other brands like OnePlus, Honor, Google and more launching highly competitive devices in the lower price range of the high-end market. Additionally, the industry is witnessing increased discussions around AI capabilities and a growing interest in foldable devices.
