Samsung Claims the Top Smartphone Spot Biting into Apple’s Business

Samsung has reclaimed its position from Apple as the leading smartphone producer globally, with a notable shift in consumer preferences towards more affordable Chinese brands, particularly in Europe.

As of now, Samsung holds a commanding 20.8% share of the global smartphone market, surpassing Apple, which currently commands around 17.3% of the market. Xiaomi follows closely in third place with a 14.1% share.

Apple briefly took the lead in 2023, interrupting Samsung’s 13-year dominance in the smartphone market.

Samsung Logo (Credits: Yves Herman)

However, this victory proved short-lived as Apple faced a significant downturn in smartphone shipments, dropping by approximately 10% in the first quarter of 2024.

The intensifying competition from Android manufacturers like Samsung, Huawei, and Xiaomi played a crucial role in this decline.

The decline in iPhone sales, particularly in China, can be attributed to a growing trend among consumers toward price and value-consciousness, exacerbated by the pandemic and ongoing economic challenges.

Apple faced stiff competition from Huawei at the high end of the market, while brands like Vivo, Oppo, and Xiaomi gained traction in the mid-range segment.

Moreover, Apple encountered challenges in China, including increased scrutiny and restrictions on its smartphones and App Store, as a response to US actions against Chinese social media platforms like TikTok.

Samsung Headquarters (Credits: Sinetica Industries)

In contrast, Samsung experienced a surge in sales of its Galaxy S24 smartphones, surpassing its predecessor, the Galaxy S23.

The success of the S24 model can be attributed to its incorporation of Galaxy artificial intelligence (AI), offering features such as chat assistance, live translation, transcription assistance, and interpretation. Notably, Apple has yet to integrate AI into its smartphones.

During the first quarter of the year, global smartphone shipments reached 289.4 million units.

Despite Samsung’s current dominance, it faces stiff competition from Chinese rivals like Xiaomi, Huawei, and Transsion (owner of brands like Itel, Techno, and Infinix).

Samsung Logo

These brands have gained popularity among price-conscious consumers, both domestically and internationally, particularly in Europe. Xiaomi, in particular, has undertaken significant efforts to revamp its global strategy and product lineup.

This trend is evident in key Southeast Asian markets like India, where Xiaomi has shifted from offering primarily budget-friendly phones to introducing more premium models to cater to evolving consumer preferences.

Moreover, Xiaomi has garnered attention by venturing into the electric vehicle market and launching its first electric vehicle, the SU7.

The company aims to bridge the gap in the Human x Car x Smart Home Ecosystem, signaling its ambitions beyond the smartphone industry.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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