According to Canalys’ latest research, worldwide smartphone shipments grew 8% year on year in the fourth quarter of 2023, reaching 320 million units. This ended seven consecutive quarters of decline. Apple led the market in the fourth quarter with a 24% share of shipments, thanks to new iPhone launches. Samsung took second place with 17%. Xiaomi was third, with over 20% year-on-year growth in Q4. TRANSSION rose to fourth place for the first time, benefiting from emerging market recovery. With a 7% market share, vivo completed the top five. top smartphone 

For full-year 2023, global smartphone shipments reached 1.1 billion units, a 4% decrease from the previous year. For the first time, Apple pipped Samsung to become the year’s top vendor in terms of shipments, though both rounded to 20% shares. Xiaomi, OPPO and TRANSSION held 13%, 9% and 8% shares, respectively.

“The market is heading in the right direction, aided by improved holiday season demand,” said Canalys Senior Analyst Toby Zhu. “Products in the mid-to-low-end price range are the growth drivers in this recovery wave, helped by a rebound in demand in emerging markets, such as the Middle East and Africa, Asia Pacific, and Latin America. Meanwhile, with inventory pressure and global inflation continuing to ease, vendors can finally focus on product innovation and long-term strategy developments, laying down solid foundations for the year ahead. There have already been plenty of new flagship Android launches taking advantage of the on-device AI trend, from Google Pixel and several Chinese vendors, such as HONOR, OPPO, vivo, and Xiaomi.”

“The top two players are eagerly looking for new growth drivers for their smartphone businesses as both suffered market share declines in Q4,” said Canalys Research Manager Amber Liu. “In 2023, Samsung focused on the mid-to-high-end segment for profitability but lost share in the low-end segment and also its leading position in the global market. Its 2024 product launches, especially in the high-end segment with a focus on on-device AI (see Canalys blog: “On-device AI and Samsung’s role in the future smart ecosystem race”), will support its rebound as an innovation leader in 2024.” 

“On the other hand, Apple showed resilience over the past two years, thanks to solid ongoing demand in the high-end segment. The expanded positioning of its iPhone 15 series has pointed to the future direction of Apple’s portfolio strategy to reach a broader range of consumer segments,” said Liu. “But Huawei’s improving strength and looming local competition in mainland China will challenge Apple to sustain its growth trajectory in mainland China while high-end replacement demand in other major markets, such as North America and Europe, is leveling off. Apple must look to new market growth and ecosystem strength to reinvigorate its iPhone business.”

Apple Achieving Record Share, IDC reports top smartphone 

Apple’s ascendancy to the top position was fueled by an all-time high market share and positive annual growth, making it the sole player in the top three to achieve this feat. Nabila Popal, Research Director with IDC’s Worldwide Tracker team, highlighted Apple’s remarkable success amidst increased regulatory challenges and resurging competition from Huawei in China, Apple’s largest market.

The biggest winner is clearly Apple. Apple exhibited positive annual growth, securing the number-one spot for the first time. Apple navigated increased regulatory challenges and revived competition from Huawei in China.

“Apple’s resilience and ongoing success can be attributed to the rising trend of premium devices, which constitute over 20 percent of the market. This surge is propelled by Apple’s aggressive trade-in offers and interest-free financing plans,” Nabila Popal said.

IDC observed a diversification within the overall Android space, with Huawei rapidly gaining ground in China and other brands such as OnePlus, Honor, Google, and more launching compelling devices in the lower price range of the high end. The rise of foldable smartphones and growing discussions around AI capabilities further underscored the dynamic nature of the smartphone industry.

Apple certainly played a part in Samsung’s drop in rank, but the overall Android space is diversifying within itself. Huawei is back and making inroads within China. Brands like OnePlus, Honor, Google, and others are launching very competitive devices in the lower price range of the high end. Apple has initiated rare discounts on its iPhones, reducing retail prices by up to 500 yuan ($70) in response to escalating competition in China’s smartphone market, a Reuters news report said.

Meanwhile, Microsoft has toppled Apple to become the world’s largest company in terms of market capitalization, driven by its focus on generative artificial intelligence (AI). Notably, Microsoft’s market value has risen by over $1 trillion over the past year.

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