Samsung has reclaimed its position as the world's largest smartphone seller, dethroning Apple in the first quarter of 2024. Preliminary data from research firm International Data Corporation (IDC) revealed that Samsung shipped a market-leading 60 million units, some 20% more than Apple during the same period.
Although Samsung's return to the top spot is not entirely surprising — iPhone sales historically peak in the fourth quarter, and the two smartphone giants constantly tussle for #1 — what is noteworthy is the nearly 10% year-over-year decline in Apple's sales, as demand for its products in China falls. By contrast, Samsung sales were flat, and overall smartphone shipments grew 8%.
Samsung only has a small foothold in the Chinese market, while Apple was a major player in the region last year, boasting over 17% market share. And, like in so many other sectors, Chinese consumers are increasingly opting for a “Made in China” option, with Apple facing intense competition in the nation from rivals Transsion and Xiaomi, both of which reported strong double-digit growth in the most recent quarter. With fewer groundbreaking new features in recent releases, consumers are also holding onto their devices for longer.
Apple has been working hard to diversify away from the iPhone, but the product remains the primary gateway into the Apple ecosystem and its infamous walled garden — and the slump in sales comes at a tough time. The recently launched Vision Pro headset is struggling to gain traction, and the company faces a DOJ lawsuit over the iPhone's alleged monopolistic power. All told, the company’s shares have lagged the wider market (S&P 500) by 13% this year
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