Tag: premiumisation trend

Highlights Global smartphone shipments rise 6.5% in Q2 2024 Samsung leads with 18.9% market share, Apple follows at 15.8% AI features in smartphones expected to capture 19% market share Premiumisation trend benefits Samsung and Apple with higher selling prices The global smartphone market is showing signs of recovery, with shipments rising 6.5% in the second quarter of 2024, according to preliminary data from IDC. This marks the fourth consecutive quarter of growth, led by industry giants Samsung and Apple. Leaders of the Pack Worldwide Smartphone Market Grew 6.5% in the Second Quarter of 2024 as Momentum Continues to Build Samsung maintained its top position with an 18.9% share of shipments, followed closely by Apple at 15.8%. Chinese manufacturer Xiaomi secured the third spot with a 14.8% market share. "While recovery is well under way with the top 5 companies all making year-over-year gains, we are seeing increasing competition amongst the leaders and a polarization of price bands. As Apple and Samsung both continue to push the top of the market and benefit the most from the ongoing premiumization trend, many leading Chinese OEMs are increasing shipments in the low end in an attempt to capture volume share amidst weak demand. As a result, the share of mid-range devices is challenged," said Nabila Popal, senior research director with IDC's Worldwide Tracker team. Artificial intelligence is emerging as a key differentiator in the smartphone market. Premiumisation trend benefits Samsung and Apple with higher selling prices Both Samsung and Apple have recently showcased new AI features for their devices. Company 2024 Q2 Shipments 2024 Q2 Market Share 2023 Q2 Shipments 2023 Q2 Market Share 2024/2023 Q2 Growth Samsung 53.9 0.189 53.5 0.2 0.007 Apple 45.2 0.158 44.5 0.166 0.015 Xiaomi 42.3 0.148 33.2 0.124 0.274 Vivo* 25.9 0.091 21.3 0.079 0.219 OPPO* 25.8 0.09 25.4 0.095 0.018 Others 92.1 0.323 90.1 0.336 0.023 Total 285.4 1 268 1 0.065 Apple's developer conference introduced AI capabilities powered by OpenAI's ChatGPT for iPhones, while Samsung's Galaxy Unpacked event unveiled AI enhancements for its latest foldable models. IDC predicts that AI-equipped smartphones, or "gen AI smartphones," will capture 19% of the market this year. Market Dynamics Samsung leads with 18.9% market share, Apple follows at 15.8% The smartphone market is experiencing a "premiumisation" trend, with Apple and Samsung benefiting the most from higher average selling prices. However, this shift is creating challenges for mid-range devices. "The growth in 2Q24 continued to provide some relief to the OEMs, though it's partly supported by a low comparison base and the overall recovery is still at a soft pace," said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific. "Some OEMs took a less aggressive move in 2Q24 amid the BOM costs pressure, which prompted the companies to refine the product specs or pricing to ensure profitability. Nevertheless, the second quarter is more like a prelude before more Gen AI smartphones are launched in the second half of the year, which will potentially be the next growth driver after 5G and foldables." In response, many leading Chinese manufacturers are increasing shipments in the low-end segment to capture volume share amid weak demand in some markets. While the 6.5% growth in Q2 is encouraging, industry experts caution that a full recovery in demand is yet to materialize. The market remains challenged in some regions, indicating that consumer confidence and spending patterns are still adjusting post-pandemic. The increasing focus on AI features and the push towards premium devices suggest that innovation will play a crucial role in driving future growth. The global smartphone industry's recovery, while promising, is still a work in progress. With AI as a potential game-changer and shifting market dynamics, the coming months will be critical in determining the long-term trajectory of the smartphone market. FAQs What is the current growth rate of the global smartphone market? The global smartphone market has grown by 6.5% in the second quarter of 2024, marking the fourth consecutive quarter of growth. Who are the top players in the smartphone market? Samsung leads with an 18.9% market share, followed by Apple at 15.8%, and Xiaomi securing the third spot with a 14.8% share. How is AI influencing the smartphone market? AI is becoming a key differentiator, with both Samsung and Apple introducing new AI features for their devices. IDC predicts AI-equipped smartphones will capture 19% of the market this year. What is the premiumisation trend in the smartphone market? The premiumisation trend refers to the shift towards higher average selling prices for premium devices, benefiting companies like Apple and Samsung, while posing challenges for mid-range devices. What challenges remain in the smartphone market despite recent growth? Despite the 6.5% growth in Q2 2024, some regions still face challenges, indicating that consumer confidence and spending patterns are still adjusting post-pandemic. Full recovery in demand has yet to be realized. Also Read: Apple Shares Dip Amid Concerns Over iPhone 16 Demand and Market Outlook Also Read: Huawei Planning for Surpirse IPO in 2024; Could Surpass Apple’s 2019 Valuation

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