Apple vs Samsung: iPhone maker overtakes South Korean giant as world's largest smartphone maker

In a historic shift, Apple’s iPhone outpaced Samsung’s smartphones to clinch the title of the world’s best-selling smartphone in 2023, marking the first time the South Korean tech giant has surrendered the top position since 2010. Preliminary data from the International Data Corporation (IDC) reveals that Apple recorded an impressive 234.6 million iPhone shipments in 2023, commanding a 20.1 per cent share of the global market with an annual growth rate of 3.7 per cent. Meanwhile, Samsung experienced a 13.6 per cent decline in smartphone shipments, totalling 226.6 million units and securing a market share of 19.4 per cent, as reported by the IDC’s Worldwide Quarterly Mobile Phone Tracker. China’s Xiaomi claimed the third position with 145.9 million shipments, representing a 12.5 per cent market share, according to IDC. Following closely are Chinese smartphone manufacturers Oppo and Transsion. IDC’s Worldwide Tracker team Research Director, Nabila Popal, noted, “Despite facing increased regulatory challenges and renewed competition from Huawei in China, its largest market, the biggest winner is clearly Apple.” Popal attributes Apple’s success to the rising trend of premium devices, accounting for over 20 per cent of the market, fueled by aggressive trade-in offers and interest-free financing plans. The power shift at the summit of the consumer electronics market is attributed to Apple’s all-time high market share, securing the No. 1 spot annually for the first time. Apple emerges as the only global player among the top three to register positive growth, surpassing Samsung over the course of a full year, indicating resilience in the face of an industrywide decline in the past two years. Global smartphone shipments witnessed a 3.2 per cent year-on-year decline to 1.17 billion units in 2023, marking the lowest full-year volume in a decade. However, an 8.5 per cent year-on-year growth in worldwide smartphone shipments in the fourth quarter of 2023, totalling 326.1 million units, exceeded the 7.3 per cent growth forecast, signalling a potential recovery in 2024. Analysts anticipate the 2024 recovery to be driven by the growth of emerging market economies, increased consumer spending, higher average selling prices, and the rapid integration of generative artificial intelligence devices. While Apple’s ascent contributed to Samsung’s decline, industry experts note that the overall Android market is diversifying, and Huawei is quickly making inroads in China. Ryan Reith, Group Vice President with IDC’s Worldwide Mobility and Consumer Device Trackers, emphasized the smartphone space is heading towards an interesting phase with intensified competition, the rise of foldable devices, and increased discussions around AI capabilities. Apple’s dominance extends beyond smartphones, as it recently surpassed Amazon to claim the title of the world’s most valuable brand, valued at $516.6 billion, according to a report by consultancy Brand Finance. The report attributes Apple’s 74 per cent yearly increase in brand value to its strategic expansion into new markets, ecosystem growth, and encouragement of upgrades to higher-value iPhones.