Global smartphone shipments rose by 8% year-on-year in the second quarter of 2024, according to Counterpoint’s Market Monitor service. This increase, observed across almost all regions, was attributed to improving consumer sentiment and favourable macroeconomic conditions, marking the third consecutive quarter of growth in the global smartphone market.
“Smartphone shipments registered strong growth as key regions continued on a recovery path. Caribbean and Latin America (CALA) emerged as the fastest growing region as Chinese OEMs continued their aggressive push helped by increased demand in smaller markets in the region,” said Prachir Singh, Senior Analyst, Counterpoint Research. “Europe and Asia Pacific also registered double-digit growth. The China market grew thanks to a strong performance in the 618 sales, which included significant price discounts including Apple iPhone. And consumer sentiment improved in many European markets, reflected in the growth of smartphone shipments in the region, especially in Western Europe (WE), which grew faster than Central and Eastern Europe (CEE). Middle East and Africa (MEA) also registered single-digit growth due to a more favourable economic environment as well as increasing push from Chinese OEMs. However, India witnessed a marginal decline due to a seasonal slump aggravated by a severe heatwave.”
Global smartphone revenues grew by 8% year-on-year in Q2 2024. Apple led the market with a 42% revenue share. Samsung’s revenues increased by 5% year-on-year, driven by growth in its average selling price (ASP) and shipments. Among the top five OEMs, Xiaomi recorded the fastest revenue growth for the second consecutive quarter, maintaining strong performance in its key markets. Revenues beyond the top five OEMs also saw significant growth, fuelled by rising revenues from Huawei, HONOR, Motorola, and Transsion brands. The >$800 segment continued to expand, growing by 2 percentage points year-on-year, while the sub-$400 segments lost share.
However, the North American market saw disappointing results as carriers reported record-low upgrade rates and lower iPhone sales. Apple’s iPhone volumes remained flat, with a 1% year-on-year decline in revenue despite growth in Pro series sales. Apple’s sales in China fell by 6.5%, though attractive discounts during the 618 shopping festival mitigated the decline. The outlook for Apple remains positive, with heightened anticipation for the forthcoming iPhone 16 family and significant expectations for Apple Intelligence.
“There were worries that iPhone volumes would disappoint after North American carriers reported record low upgrade rates and lower iPhone sales. We estimate Apple iPhone volumes were flat and revenue declined by 1% YoY despite Pro series sales growth. Apple’s China sales was down 6.5%, but it could have been a lot worse. Apple’s China sales improved due to attractive discounts offered during the 618 shopping festival. The outlook for Apple looks solid as there is more supply chain excitement for the upcoming iPhone 16 family and big expectations for Apple Intelligence,” added Jeff Fieldhack, Research Director, Counterpoint Research.
Samsung led global smartphone shipments during the quarter, driven by the strong performance of the Galaxy A-series and continued momentum of the Galaxy S24 series. Samsung captured five spots in the top 10 best-selling smartphones. Among the top five brands, Xiaomi was the fastest-growing, followed by vivo. Xiaomi’s growth was driven by the MEA and CALA regions, along with gains in China, India, and key APAC countries. For vivo, China remained the primary growth driver, alongside India and South Asian countries. Huawei, HONOR, Motorola, and Transsion also performed well during the quarter.
“In terms of shipments, we see a gradual recovery for the global smartphone market. The ongoing premiumisation trend, coupled with the AI trend, is likely going to push up the ASPs and revenues in the coming quarters. Smartphones make the perfect platform for making AI accessible to everyone. Generative AI, especially, is revolutionising smartphones. It offers personalised experiences, enhances existing features, and allows for more intuitive interactions. We estimate that GenAI’s share of overall smartphone shipments will reach 18% by 2024,” concluded Tarun Pathak, Research Director, Counterpoint Research.
There’s plenty of other editorial on our sister site, Electronic Specifier! Or you can always join in the conversation by commenting below or visiting our LinkedIn page.
