 "Apple maintained its lead in global market share in 2024, holding 18.7 per cent of the market, closely followed by Samsung at 18 per cent. Xiaomi, however, made a significant leap, increasing its market share to 13.6 per cent. Image Credit: Reuters")
In a significant shift in the global smartphone market, Chinese companies like Xiaomi, Oppo, and Honor have outpaced Apple and Samsung, which are grappling with declining shipments.
According to preliminary data from the International Data Corporation (IDC), the global smartphone market has made a strong recovery after two years of decline, with Chinese brands expanding their market share through aggressive strategies, especially in the low-end device sector and within domestic markets.
Apple and Samsung struggle as Chinese competitors rise
In the fourth quarter of 2024, Apple saw a 4.1 per cent drop in global shipments, with 76.9 million units sold, while Samsung experienced a 2.7 per cent decline, shipping 51.7 million units. This marks a noticeable decline for both companies as they face mounting competition from Chinese manufacturers.
Xiaomi, Oppo, and Honor have aggressively expanded their reach, particularly in Europe and Africa, by focusing on more affordable devices. As a result, Chinese companies now account for 56 per cent of global smartphone shipments in the fourth quarter, marking the highest combined volume for Chinese brands in a single quarter.
Apple maintained its lead in global market share in 2024, holding 18.7 per cent of the market, closely followed by Samsung at 18 per cent. Xiaomi, however, made a significant leap, increasing its market share to 13.6 per cent.
While Apple and Samsung both saw slight declines in shipments, Xiaomi experienced a notable 15.4 per cent growth in its shipments. This growth is attributed to the brand’s aggressive push into mid-range and budget segments, which has proven highly successful, particularly as global consumers are increasingly seeking more affordable smartphone options.
Shifting strategies and declining interest in foldables
Despite the overall recovery in the smartphone market, the demand for foldable devices has decreased, even as manufacturers ramped up their promotional efforts. IDC’s research director, Anthony Scarsella, noted that the decreased interest in foldables has led smartphone makers to reallocate their research and design budgets away from foldable smartphones. Although foldables were once seen as the next big innovation, consumer interest has stagnated, prompting brands to rethink their focus.
The market outlook remains positive, with IDC’s senior research director Nabila Popal noting that growth is expected to continue in 2025. However, the possibility of new tariffs under the incoming US administration adds a layer of uncertainty to the market. As competition intensifies, particularly from Chinese players, Apple and Samsung will need to adapt to the changing landscape to maintain their positions in the global smartphone market.