The global smartphone market experienced robust growth in the second quarter of 2024, with a notable 8% increase in shipments year-over-year (YoY). This growth reflects an overall positive shift in consumer sentiment and macroeconomic conditions across most regions. Here’s an in-depth look at the key highlights, market dynamics, and future outlook for the smartphone industry.

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Key Highlights

Market Growth: The global smartphone market grew by 8% YoY, reaching 289.1 million unit shipments in Q2 2024.

Top Performers: Samsung retained the leading position globally with a 19% share of the shipment market. Apple, despite a slight growth in shipments, led the market in revenues with a 42% share.

Rapid Growth: Xiaomi demonstrated the fastest growth among the top five OEMs, registering a 27% YoY increase in shipments.

Revenue and ASP: Global smartphone revenues also saw an 8% YoY increase, with the average selling price (ASP) reaching its highest level for a second consecutive quarter.

Market Dynamics and Regional Performance

The smartphone market’s expansion in Q2 2024 was driven by a range of factors, including improving economic conditions and heightened consumer demand:

Regional Growth:

Caribbean and Latin America (CALA): Emerged as the fastest-growing region, spurred by aggressive expansion from Chinese OEMs and rising demand in smaller markets.

Europe and Asia Pacific: Both regions recorded double-digit growth, with Western Europe outperforming Central and Eastern Europe.

China: Benefited from strong performance during the 618 sales event, which included significant price discounts, particularly for Apple iPhones.

Middle East and Africa (MEA): Noted single-digit growth due to a favorable economic environment and increased efforts from Chinese manufacturers.

India: Experienced a slight decline due to a seasonal slump exacerbated by a severe heatwave.

Revenue Insights

Apple: Dominated the revenue segment with a 42% market share, despite flat shipment volumes and a 1% YoY decline in revenue. Apple’s performance was bolstered by discounts during the 618 shopping festival in China, which mitigated a 6.5% decline in Chinese sales.

Samsung: Saw a 5% YoY increase in revenue, driven by strong performances from the Galaxy A-series and the continued success of the Galaxy S24 series. Samsung captured five spots in the top 10 best-selling smartphones.

Xiaomi: Registered the fastest revenue growth among the top five OEMs for the second consecutive quarter, thanks to strong performances in MEA and CALA regions.

Other Brands: Huawei, HONOR, Motorola, and Transsion also saw significant revenue growth, with Huawei and HONOR performing strongly in China and CALA, while Transsion brands excelled in Eastern Europe, India, and MEA.

Product and Brand Performance

Samsung: Continued to lead in global shipments with robust sales from its Galaxy A-series and Galaxy S24 series. The brand secured five positions in the top 10 best-sellers.

Xiaomi and vivo: Xiaomi grew rapidly, particularly in MEA and CALA, while also gaining momentum in traditional markets like China and India. Vivo showed growth driven mainly by strong performances in China and South Asia.

Huawei and HONOR: Both brands gained ground, with Huawei leveraging its strong position in China and HONOR seeing growth in CALA and MEA.

Motorola: Experienced growth is driven by markets in India, CALA, and North America.

OPPO: Saw a marginal decline in shipments, primarily due to decreased performance from its OnePlus brand amidst stiff competition.

Future Outlook

Market Trends: According to Research Director Tarun Pathak, the global smartphone market is expected to see a gradual recovery, driven by ongoing premiumization and the integration of AI technologies. Generative AI is anticipated to play a significant role, in revolutionizing smartphones with personalized experiences and enhanced features.

AI Integration: The share of smartphones incorporating generative AI is projected to reach 18% by the end of 2024, highlighting the growing importance of AI in the smartphone market.

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Conclusion

The global smartphone market’s 8% YoY growth in Q2 2024 reflects a positive trajectory for the industry, with significant contributions from key players like Samsung, Apple, and Xiaomi. Regional dynamics and evolving consumer preferences continue to shape market trends, while advancements in AI technology are set to drive future innovations. As the industry navigates these developments, smartphone manufacturers will need to stay agile and responsive to maintain their competitive edge.

Source @ counterpointresearch