Let’s delve into the dynamic world of smartphones! Counterpoint Research’s latest report sheds light on the global smartphone market’s performance in the first quarter of 2024. Global Smartphone Market Q1 2024

Buckle up as we explore intriguing insights, brand battles, and regional trends that are shaping the mobile landscape.

Global Smartphone Market Q1 2024: A Growth Story

The global smartphone market exhibited resilience in Q1 2024, registering a commendable 6% year-over-year (YoY) growth. This positive trajectory can be attributed to the strong performance in emerging markets like Europe, the Middle East, and Africa (MEA), and Caribbean and Latin America (CALA). Let’s dissect the factors propelling this growth.

Emerging Markets Take the Lead Global Smartphone Market Q1 2024

Savvy smartphone users in emerging markets are driving the industry forward. These regions witnessed a surge in consumer demand, fueled by improved inventory levels and a gradual rise in disposable income. The MEA region, in particular, witnessed impressive growth due to the dominance of brands like TECNO, Xiaomi, and HONOR.

China, too, experienced healthy YoY growth, thanks to robust Lunar New Year sales and Huawei’s comeback strategy. India followed suit, capitalizing on healthy inventory levels carried over from 2023. Interestingly, mature markets like North America and Japan witnessed a decline compared to Q1 2023.

Samsung Reigns Supreme, Apple Faces Challenges

The battle for the smartphone throne witnessed a significant shift. Samsung reclaimed the top spot, driven by the early refresh of its popular Galaxy A series and the stellar performance of the Galaxy S24 lineup. This strategic move also propelled Samsung to its highest-ever average selling price (ASP) during the quarter.

Apple, however, encountered headwinds in Q1 2024. Stiff competition in China, coupled with a record-low upgrade rate in the US, dampened iPhone sales. Additionally, a challenging comparison against the previous year, where iPhone 14 Pro shipments were skewed towards Q1 2023, further impacted performance.

There were bright spots for Apple, though. An improved product mix, featuring strong sales of the iPhone 15 Pro, and an expanding presence in emerging markets helped mitigate some of the decline. These emerging markets hold immense long-term growth potential for Apple, especially with the anticipated launch of GenAI-powered iPhones later this year.

Other Notable Trends: A Glimpse into the Future Global Smartphone Market Q1 2024

The report unveils other noteworthy trends that paint a vivid picture of the smartphone industry’s future:

• Premiumization on the Rise: The trend of consumers opting for high-end smartphones continues unabated. The above-mentioned $800 price segment registered double-digit growth, capturing a significant 18% share of the market in Q1 2024.
• The Rise of GenAI: Artificial intelligence (AI) integration is rapidly transforming the smartphone landscape. Over 10 OEMs have already launched GenAI-enabled smartphones, and this trend is poised to accelerate. Counterpoint Research estimates that GenAI-powered devices will account for a staggering 11% of all smartphone shipments by the end of 2024.
• Shifting Brand Landscape: While Samsung and Xiaomi enjoyed a growth spurt, OPPO experienced a decline due to intense competition and a strategic shift towards promoting higher-ASP devices in emerging markets. Huawei’s resurgence in China, along with HONOR’s strong performance in CALA and MEA, were other significant developments. The Transsion brands – TECNO, itel, and Infinix – continued their dominance in APAC, Eastern Europe, India, and MEA.

Growth Expected to Continue, Albeit Slower

The report anticipates a measured yet steady growth trajectory for the smartphone market in the near future. However, revenue growth is expected to outpace shipment growth, fueled by the ongoing premiumization trend and the adoption of innovative features like foldable displays and GenAI capabilities.

Conclusion: A Thriving Smartphone Ecosystem

The Q1 2024 global smartphone market report by Counterpoint Research paints a picture of an industry in flux. Emerging markets are leading the charge, while established players are adapting to changing consumer preferences and technological advancements. The integration of GenAI promises to revolutionize the user experience, paving the way for a future.