The analyst firm Canalys has reported that the global smartphone market saw a third consecutive quarter of growth during Q2 2024. It saw shipments expand 12% year over year, reaching 288 million units.
With the latest data in hand, we see that Samsung held the most market share at 18%, down from 21% last year, Apple declined to 16% from 17%, Xiaomi rose to 15% from 13%, vivo also rose from 9% to 8%, and TRANSSION remained at 9%. The Others category also stayed at 33%.
The reasons for the uptick in shipments are several. The main reason is that inflation has been easing during the early part of the year across Asia-Pacific, the Middle East, Africa, and Latin America. Companies like Xiaomi and TRANSSION have been pushing for people to upgrade their phones, and HONOR, OPPO, and vivo have been pushing to get new customers outside Mainland China.
Another factor that has helped the sales of smartphones, according to Canalys, is that innovative technologies like generative AI have started arriving on phones. For some people, this is enough to justify a new upgrade. While not mentioned by Canalys specifically, foldable phones have also started becoming lower in cost, making them more appealing.
Commenting on the new AI features coming to phones, Sheng Win Chow, Analyst at Canalys, said:
"Samsung and Apple are rapidly advancing their premium product strategies with GenAI feature as a key focus. Samsung recently launched its Galaxy Z Fold6 and Flip6 series, building on the AI capabilities first introduced with the Galaxy S24 to deliver enhanced experiences on its latest foldable devices. By integrating software innovation with the foldable form factor, Samsung aims to provide differentiated value to users. While Apple has yet to announce new products, the company generated excitement at WWDC around anticipated refreshes coming soon that will likely demonstrate its leadership in technology innovation."
Inflation in major markets like the US and Europe seems to be coming down this year, almost to the 2% target, and there is talk of cutting interest rates in the near future. If that happens, credit will be cheaper for consumers, meaning we could see further growth in smartphone shipments.
Source and Image: Canalys