It Was Fun While It Lasted; Apple Gets Dethroned in Smartphone Market, Sales Down by 10%


Apple’s grip on the smartphone market loosened in the first quarter of 2024, with shipments dipping, according to data from the International Data Corporation (IDC). The company shipped 50.1 million iPhones, a decline from the 55.4 million units shipped in the same period last year. 

This stands in contrast to the global smartphone market, which experienced a resurgence with a 7.8% year-over-year increase in shipments, reaching 289.4 million units in Q1 2024.

Source: IDC

Samsung capitalized on this trend, reclaiming the top spot in global smartphone shipments. They captured a 20.8% market share by shipping 60.1 million units in Q1 2024, pushing Apple down to second place with a 17.3% market share. 

This could be directly related to the release of the Galaxy S24 series, Samsung’s latest flagship device, compared to the iPhone 15’s launch back in September. Another reason I believe this could be because Samsung has introduced many AI features to its devices, and we all know that Apple has been lagging behind when it comes to AI implementation. But there is news that the next iPhone might have in-build AI; perhaps that’s what is stopping people from going for the latest iteration of iPhones. This is just my take; the analysts’ take is next. 

Analysts point to two main reasons for Apple’s decline: 

  • Intensifying competition from Chinese smartphone manufacturers and 
  • Ongoing challenges in the Chinese market, Apple’s third-largest. 

Xiaomi saw impressive growth of 33.8% year-over-year, which shows the increasing strength of Chinese competitors. 

Some Chinese companies and government agencies, mirroring US restrictions on Chinese apps due to security concerns, have limited employee use of Apple devices. This trend is shown in Apple’s iPhone shipments in China, which shrunk 2.1% in the final quarter of 2023 compared to the previous year.

While other tech giants are actively incorporating AI technology into their products, Apple has remained relatively quiet on the subject. The Worldwide Developers Conference in June could offer valuable insights into Apple’s plans for AI integration and its strategy to maintain its position in the increasingly competitive smartphone market.

More here.

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