Smartphone Production Rebounds in Q1 2024, but Challenges Loom: Trendforce

Highlights

• Smartphone production grew 18.7% year-on-year in Q1 2024.
• Samsung led the market with a 20.1% share and 59.5 million units.
• Apple held a 16.2% market share with 47.9 million units.
• Trendforce predicts a possible decline in production in Q2 2024.

According to a Trendforce report, the smartphone industry witnessed excellent 18.7 percent year-on-year production growth in the first quarter of 2024.

296 million units were found to be shipped.

But weak production numbers for the early part of 2023 contributed somewhat to this growth and it is conjectured based on expectations that the following quarter, from April to June 2024 may witness some decline in production number.

Market Share Breakdown

The report outlines major smartphone manufacturers‘ performances in the first quarter of 2024.

The leader was Samsung, manufacturing 59.5 million units and enjoying a 20.1% market share.

Apple came second with 47.9 million units or 16.2% of the market.

Xiaomi ranked second with 41.1 million units and 13.9% of the share, while Oppo, including OnePlus and Realme manufactured 33.8 million units at 11.4% of the market share.

Transsion (Infinix, Tecno, iTel) and vivo rounded out the top six with 29.8 million (10.1% share) and 21.7 million (7.3% share) units, respectively.

Inventory Clearance Strategies

Theistrat report pointed out that the market strategy companies have done since 2023, which has been to push old inventory and slow down the release of new devices to get rid of the inventories, has also affected the data in comparison with the past few months.

However, Trendforce has acknowledged that Xiaomi hasivative resolved its inventory problems and hence increased investment in emerging markets.

Regional Dynamics

But Oppo was outdone on the domestic Chinese front, where a slump in sales saw Honor take its place as the number one manufacturer.

Ending Nokia’s patent disputes, the company is all set to make a European re-entry later in the second half of the year, including Germany.

Looking Ahead

Despite the positive production numbers in Q1 2024, Trendforce’s report cautions that the following quarter may witness a decline in production levels.

This highlights the ongoing challenges and uncertainties faced by the smartphone industry, underscoring the need for manufacturers to adapt their strategies and navigate the ever-changing market landscape.

FAQs

How much did smartphone production grow in Q1 2024?

Smartphone production grew by 18.7% year-on-year in the first quarter of 2024, reaching 296 million units shipped.

Which company led the smartphone market in Q1 2024?

Samsung led the market with a 20.1% share, manufacturing 59.5 million units.

What is Trendforce’s outlook for smartphone production in Q2 2024?

Trendforce predicts that smartphone production may decline in the second quarter of 2024 due to various market challenges.

How did Apple perform in the smartphone market in Q1 2024?

Apple held the second position with a 16.2% market share, producing 47.9 million units.

What strategies have smartphone manufacturers used to manage inventory?

Manufacturers have pushed old inventory and slowed down the release of new devices to clear existing stock, impacting production comparisons with previous months.

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