TechInsights: Global smartphone shipments rebounded by 8% year-on-year in the second quarter, reaching 290 million units

According to the latest research from the TechInsights smartphone research team, in the second quarter of 2024, global smartphone shipments rebounded by 8% year-on-year to reach 290 million units. Samsung ranked first in the global smartphone market with a market share of nearly 19%. Apple (AAPL.US) ranked second with a 15% market share. Xiaomi (01810), vivo, and TRANSSION were among the top five, followed by OPPO (OnePlus), Honor, Lenovo-Motorola, realme, and Huawei. Among the top ten suppliers, all suppliers except OPPO (OnePlus) achieved a year-on-year positive growth rate.

In the second quarter of 2024, global smartphone shipments increased by 7.6% year-on-year to reach 289.6 million units. This marks the third consecutive quarter of recovery. This recovery is mainly driven by the surge in demand in emerging markets. Africa, the Middle East, Central and Latin America, Eastern Europe, and the Asia-Pacific region have all achieved solid results and have mainly led the recovery. The North American and Western European markets continue to decline, but the rate of decline has improved significantly compared to previous quarters.

Samsung's global smartphone shipments reached 53.8 million units, occupying nearly 19% of the market share, a slight decrease from 20% in the same period last year. Although the company's smartphone shipment growth rate is only 1%, the lowest among all top ten manufacturers [excluding OPPO (OnePlus)], Samsung has successfully ended the downturn of the past seven quarters. This growth mainly comes from the three regions of Africa, the Middle East, and Central and Latin America, while its performance in mature markets and India remains mixed. Samsung achieved a healthy average selling price (ASP) and revenue this quarter, but its profit margin was severely affected by high component costs. Samsung ranks first in Central and Latin America and Eastern Europe, and second in North America and Western Europe.

Apple's iPhone shipments this quarter reached 44.7 million units, a 4% year-on-year growth. It held a 15% market share, down one percentage point from 16% in the same period last year. Except for China (down 8% year-on-year) and Eastern Europe (down 9% year-on-year), all other regions achieved annual growth rates. In the second quarter of 2024, Apple saw double-digit growth rates in India, Southeast Asia, Central and Latin America, and the Middle East and Africa, mainly due to aggressive price discounts on the iPhone 15 and older iPhone models. The downward trend in the Chinese market eased this quarter. Apple's iPhone shipments in the Chinese market decreased by 8% year-on-year, an improvement from the 19% decline in the first quarter of 2024. Aggressive price discounts on the iPhone 15 series and older iPhone models, as well as channel promotion activities during the 6.18 online shopping festival, helped the company stabilize its performance in the world's largest smartphone market this quarter In North America and Western Europe, Apple maintained its leading position, achieving annual growth rates of 5% and 4% respectively this quarter. Performance in the Japanese market improved with an 8% year-on-year growth.

Xiaomi continued to hold the third position, with a global smartphone shipment volume of 42.3 million this quarter, a 27% year-on-year growth, capturing a 15% market share. It is worth noting that this Chinese manufacturer has maintained a growth trend for four consecutive quarters. Strong growth was seen in China, India, Southeast Asia, Central and Latin America, and the Middle East and Africa regions. In India, Xiaomi ranked second (only behind vivo), but its market share increased to 19% this quarter, up from 16% a year ago. In China, Xiaomi achieved double-digit growth rates, increased its annual market share, and entered the top five. The strong growth in emerging markets is mainly attributed to enhanced product portfolio, competitive pricing strategies, and active channel expansion.

vivo's global shipment volume this quarter was 25.8 million units, a 20% year-on-year growth, rising to the fourth position with a 9% market share. This quarter, vivo topped the Asia-Pacific region with a 16% market share. In this region, vivo simultaneously led the markets in China and India for the first time. The strong performance of the Y series in the low-end market and the improvement of the X series in the high-end market contributed to the company's solid performance. Apart from China and India, vivo also achieved strong growth in several emerging markets in the Asia-Pacific region (such as Thailand and Bangladesh). However, shipment volumes in other regions are still in the early stages. Given the current oversupply of inventory in some emerging market channels, the company may not be able to maintain strong growth momentum in the coming quarters.

Transsion Group (including Tecno, Infinix, and itel) relinquished the fourth position to vivo this quarter, ranking fifth. These three brands collectively shipped 25.5 million smartphones globally in the second quarter of 2024, a 3% year-on-year growth, with a market share close to 9%, unchanged from last year. Tecno and Infinix accounted for the majority of the market share, while the itel brand focused on the lower-priced feature phone market. The company has been facing resistance from patent lawsuits filed by Qualcomm and Philips in India and Europe. Meanwhile, competition in India and other low-end 4G and 5G emerging markets is intensifying, mainly from brands like vivo and realme. The company is expected to face a challenging journey ahead.

OPPO (including OnePlus) slipped to the sixth position, with a shipment volume decreasing by 8% year-on-year. This Chinese brand has been experiencing annual declines for eleven consecutive quarters. Its market share is 9%, lower than 10% a year ago. The OPPO brand saw a 5% annual decline, while the OnePlus brand declined by 22% annually. Soft demand in North America (OnePlus brand) and Western Europe, as well as increasingly fierce competition in the Asia-Pacific region, are the main reasons for the decline. This quarter, both India and China markets also experienced annual declines.

Honor's strong recovery momentum this quarter has slowed down, ranking seventh with a 5% market share, slightly higher than a year ago. Over 60% of sales this quarter came from the Chinese market. Honor continues to make progress in Western Europe, Southeast Asia, Latin America, Eastern Europe, and the Middle East region However, in the Chinese market, Honor's market share dropped to 15% in the second quarter of 2024, down from 17% a year ago. This quarter, Honor ranked fourth in the Chinese market, behind vivo, OPPO (including OnePlus), and Huawei.

Lenovo-Motorola maintained eighth place in the second quarter of 2024, with a market share of 5%. Shipments increased by 28% year-on-year, with robust growth in all regions except Central and Latin America. This quarter, the supplier streamlined its sub-brands and updated the Edge and G series, helping the company maintain its upward momentum. In North America, Lenovo-Motorola consolidated its third position, with a 14% annual market share growth, its highest share in the second quarter in history, thanks to the updated G and Edge product lines.

realme climbed to ninth place, with a market share of over 4% this quarter. realme achieved 13% year-on-year growth in the second quarter of 2024, mainly from Europe, Latin America, and the Middle East and Africa. It maintained a top-five position in Central and Eastern Europe and the Middle East and Africa. However, its performance in China and India remains inconsistent.

Huawei ranked tenth, with a 49% year-on-year increase in smartphone shipments this quarter, mainly due to its resilience in the Chinese market. In the Chinese market, Huawei achieved 57% annual growth with its iconic Mate 60 Pro model, newly launched Pura 70 series, and strong position in the foldable screen segment. This quarter, Huawei ranked third in the Chinese smartphone market with a 15% market share, behind vivo and OPPO (including OnePlus). However, it is noted that Huawei's recovery momentum in the Chinese market slowed down this quarter, failing to meet expectations or dominate the market. The newly launched Pura 70 series did not perform as well as expected in the domestic market, due to factors such as a higher price tag, quality issues like overheating, and intense competition from Apple in the high-end market. Additionally, the lack of product line updates in the mass market (Nova and Enjoy series) limited its growth trajectory this quarter.

Among the global Top 10, except for OPPO (including OnePlus), other brands achieved year-on-year growth in the second quarter of 2024. The eight Chinese companies in these top ten brands collectively achieved 15% annual growth, surpassing the overall market's 8% annual growth rate. However, it is noted that the growth rates of some Chinese brands, including Transsion, Huawei, and Honor, significantly slowed down compared to previous quarters.

TechInsights predicts a 5% year-on-year growth in global smartphone shipments in 2024. Geopolitical issues, economic uncertainty, and rising component prices will continue to pressure the global smartphone market. Samsung and Apple will continue to maintain the top two positions in 2024, but their market shares will continue to be eroded by Chinese brands. Huawei's resurgence in the 5G field will continue to reshape the Chinese and global smartphone markets in 2024 and beyond, but the road to recovery may be fraught with challenges in each quarter