Apple's Global Smartphone Market Share Declines Despite Rising iPhone Shipments

Multiple Reports Suggest Apple Lags Behind The Global Smartphone Market, But Apple Intelligence Could Turn The Tables Next Quarter

Based on two recent estimates by IDC and Counterpoint Research, Apple appears to be lagging in the smartphone market, but the trend could see an uptick in the next quarter. While the global smartphone market grew by 6 percent in the second quarter, Apple saw the same level of performance year-over-year. While the dual reports are consistent in their estimates, both boast a different approach. According to the research conducted by IDC, global smartphone sales increased by 6.5 percent, which means that the market sold over 285.4 million units. However, Apple's shipments saw little to no change in iPhone shipments, with only 1.5 percent growth in the same time frame. There is a possibility that the lack of design variations and new features was the reason why the sales have been consistent. Check out what the report has to say: The preliminary market results show that Samsung captured the top position in 2Q24 with 18.9% share of shipments, thanks to a strategic focus on its flagships and a strong AI strategy. Apple finished the quarter in second place with 15.8% share with improved performance in China and other key regions. The leading companies both saw modest growth year over year. While estimates from IDC are pretty close to Counterpoint Research at 6 percent market growth year-over-year, the latter points that iPhone shipments fell by 1 percent during the same time period. The difference in the results is marginal but considering Apple sells a lot of iPhone, even a single percent decrease could reflect in millions. The top five brands remained the same as in earlier quarters. Samsung retained the top spot in Q2 2024, helped by strong sustained sales of the AI-focused Galaxy S24 series and an early refresh of the popular Galaxy A series, whose models emerged as the bestsellers in entry-level to mid-price bands. Samsung also led the sales of GenAI-capable Android smartphones and is expected to further capitalise on it with its new-generation foldables. Apple's global sales remained flat but recorded strong YoY growth in Europe and Latin America, which compensated the low upgrade rates in the US and share loss in China following Huawei's rise. However, Apple saw improvement in sales in China during the 618 shopping festival where it offered attractive discounts. While the results are marginal, it seems that Apple is having a hard time competing against the market. However, the company is expected to show promising results in the next quarter, all thanks to its next-gen iPhone models and the newly announced AI features. The research firms state that Apple Intelligence and other AI features could allow iPhones to perform better in the third quarter of this year. Note that Apple Intelligence is only available on the iPhone 15 Pro and iPhone 15 Pro Max, which means that only a handful of users from the total pool of devices will be able to take advantage of the new utilities. Other than this, Apple will also release its new iPhone 16 lineup in the coming months, which could come with exclusive AI features as well, which the company did not announce on stage at WWDC. So far the numbers are low for Apple but the next quarter could prove to be quite different.

Global iPhone shipments are rising, but Apple is losing share to Chinese rivals

Both Apple and Samsung have increased their sales in Q4 2024 compared to a year earlier, but rising competition from China's Xiaomi and others mean the iPhone's market share has dropped. Apple appears to be turning around its problems in China, despite the increased competition from local brands, it was sales in that country that helped boost the iPhone's fortunes in Q2 2024. According to the Wall Street Journal, stronger performance in China led quarterly shipments of the iPhone to rise 1.5% year over year, to 45.2 million. Samsung also saw growth of 0.7% YoY, bringing it to 53.9 million units. Reportedly, while Apple's growth is ascribed to a recovering Chinese market, Samsung's is said to be because of its focus on AI and its flagship models. With both Apple and Samsung, however, the growth comes as the overall smartphone market has also grown. Despite their increased shipment figures, both firms saw their overall market share drop. Apple's share fell from 16.6% in Q2 2023 to 15.8% in Q2 2024. Over the same period, Samsung's share fell from 20% to 18.9%. In comparison, Chinese firm Xiaomi increased its market share from 12.4% to 14.8% over the same period, while Vivo rose from 7.9% to 9.1%. That means Xiaomi sold 42.3 million units, only slightly behind Apple. Vivo sold 25.9 million. Significantly, neither Apple nor Samsung tend to launch new phones during the second quarter. Then Apple will be leaning on its Apple Intelligence feature for the forthcoming iPhone 16 range and expects to see a significant boost in sales. The likelihood of AI features boosting smartphone sales has also now been backed up by chip manufacturer TSMC. While its second-quarter results will not be announced until July 17, 2024, Reuters says that analysts are predicting a 30% rise in profits because of demand for AI processors.

Apple lags behind global smartphone market, but AI expected to drive Q3 demand - 9to5Mac

Both Counterpoint Research and IDC have published their latest estimates of the global smartphone market, each showing that Apple is lagging behind. The worldwide smartphone market as a whole grew by around 6% in Q2, while iPhone shipments were roughly flat year-on-year ... As is usual, the two firms paint slightly different pictures, but are broadly consistent. IDC reports that global smartphone shipments increased 6.5% year-on-year to 285.4 million units, and that iPhone growth was much smaller at 1.5% during the same period. The preliminary market results show that Samsung captured the top position in 2Q24 with 18.9% share of shipments, thanks to a strategic focus on its flagships and a strong AI strategy. Apple finished the quarter in second place with 15.8% share with improved performance in China and other key regions. The leading companies both saw modest growth year over year. Counterpoint puts the overall market growth very slightly lower at 6%, and says that iPhone shipments fell 1% in this time. The top five brands remained the same as in earlier quarters. Samsung retained the top spot in Q2 2024, helped by strong sustained sales of the AI-focused Galaxy S24 series and an early refresh of the popular Galaxy A series, whose models emerged as the bestsellers in entry-level to mid-price bands. Samsung also led the sales of GenAI-capable Android smartphones and is expected to further capitalise on it with its new-generation foldables. Apple's global sales remained flat but recorded strong YoY growth in Europe and Latin America, which compensated the low upgrade rates in the US and share loss in China following Huawei's rise. However, Apple saw improvement in sales in China during the 618 shopping festival where it offered attractive discounts. AI is now seen as the biggest driver in demand for premium smartphones, with Samsung already seeing the impact of this. Apple is expected to similarly benefit when it launches the iPhone 16 line-up in September. Currently, the two iPhone 15 Pro models are the only ones which will be able to take advantage of the full set of Apple Intelligence features, so most iPhone owners will need to upgrade if they want to access these.

Apple : iPhone cede incremental share in the month of June By Investing.com

UBS analysts highlighted a challenging month for Apple (NASDAQ:AAPL) iPhone sales, noting that the company saw minimal growth compared to its competitors in June, according to preliminary data from Counterpoint. In their note, UBS pointed out that "iPhone unit sell-through was up roughly +1% in the month compared to global smartphone growth of ~4%," indicating a marginal performance that trailed the broader market. They noted that this resulted in a decline in iPhone's market share by 40 basis points year-over-year to approximately 16.3%. Meanwhile, UBS said several Chinese OEMs, such as Xiaomi and Vivo, outperformed Apple during the same period, with Xiaomi seeing a 25% increase in units and Vivo up by approximately 6%. Looking at the broader June quarter performance, UBS reported that iPhone unit sell-through reached around 45 million units, marking a 1% decline year-over-year. This contrasts with a 6% growth for the overall smartphone market. The weaker performance in sell-through also translated into a decline in iPhone's market share for the quarter, which was slightly below 16%, down significantly from over 100 basis points compared to last year. UBS analysts attributed some of the June quarter's challenges to competitive pressures and economic conditions, particularly in China. They noted that "iPhone declines in the June quarter were mitigated by up 20% price discounts on iPhone 15s during May," underscoring the difficulties in the Chinese market amidst economic headwinds and a resurgent Huawei. In terms of valuation, UBS maintained a price target of $190 for Apple, reflecting a multiple of 27 times their estimated earnings for CY25/CY26. They highlighted the company's premium valuation relative to the market, citing a challenging growth environment and uncertainties surrounding Apple's AI strategy as key considerations.

Smartphone market rose in Q2 as Apple, Samsung benefit from premiumization trend - Reuters By Investing.com

Worldwide smartphone shipments increased by more than 6.5% in the second quarter, driven by Samsung Electronics and Apple (AAPL), a report from Reuters said on Monday, citing preliminary data from IDC showed. Despite the positives, a full recovery in demand is yet to arrive, adds Reuters, highlighting that it still remains challenged in some markets. The publication said the research firm showed that global shipments grew for the fourth consecutive quarter as smartphone makers hope artificial intelligence will entice price-wary consumers and capture a more considerable market share. Analysts at IDC's Worldwide Tracker team told the publication that there is "lots of excitement" in the smartphone market, while "many leading Chinese OEMs are increasing shipments in the low end in an attempt to capture volume share amid weak demand." They added that "Apple and Samsung both continue to push the top of the market and benefit the most from the ongoing premiumization trend." Apple shares (NASDAQ:AAPL) opened more than 2% higher Monday after Morgan Stanley analysts upgraded it to a Top Pick and raised the price target from $216 to $273. Morgan Stanley reinforced its bullish view of the stock as its analysts now have a strong conviction that the introduction of Apple Intelligence, and its limited backward compatibility, can trigger a multi-year refresh cycle for Apple devices. "What we had previously underestimated, and what the market still underappreciates today, is just how material the impending upgrade cycle can be," said the investment bank. Their analysis of Apple's upgradeable iPhone base, upgrade rates, new user growth, and model mix suggests Apple is poised to ship nearly 500 million iPhones over the next two years -- 235 million in the fiscal year 2025 and 262 million in FY26. "While historically we'd contemplate 230-240m annual iPhone shipments in a strong cycle, these factors portend that annual shipments could reach 260-290m units, significantly higher than the 230-235m iPhone shipments the market is currently pricing in for each of the next 2 years," added the bank.

Apple, Samsung Smartphone Shipments Up But Chinese Rivals Notch Bigger Gains

Apple benefited from an improved performance in China while Samsung's "strong AI strategy" was a boost for the South Korean company, IDC said. Global smartphone shipments by Apple (AAPL) and South Korea's Samsung rose in the second quarter from a year earlier, but their global market shares fell as Chinese rivals chalked up bigger gains, according to data from research firm International Data Corp. Apple and Samsung were boosted by their focus on premium smartphones, IDC said. The iPhone maker also benefited from improved performance in China, while Samsung, which continued its run as the world's top smartphone provider, gained from its "strong AI strategy," it added. "As Apple and Samsung both continue to push the top of the market and benefit the most from the ongoing premiumization trend, many leading Chinese OEMs are increasing shipments in the low end in an attempt to capture volume share amidst weak demand," Nabila Popal, research director with IDC's Worldwide Tracker team, said. Quarterly shipments of iPhones climbed to 45.2 million units from 44.5 million a year ago but Apple's market share fell to 15.8% from 16.6%. Samsung's market share fell to 18.9% from 20.0%, although it remained the top seller of smartphones globally at 53.9 million units, up from 53.5 million. In contrast, Chinese smartphone maker Xiaomi chalked up a 27% year-over-year jump in global shipments and saw its share of the global market share rise to 14.8% from 12.4%. Vivo, another Chinese company, saw its market share climb to 9.1% from 7.9% as global shipments jumped about 22% to 25.9 million.

Smartphone Sales Climb Thanks to Markdowns and AI

iPhone sales stabilized in the second quarter amid growth in the broader smartphone market. New data released Monday (July 15) by IDC shows a 6.5% increase in global smartphone shipments, while Counterpoint Research -- published Monday as well -- found a 6% increase in phone sales to consumers. "Apple's momentum in Q2 improved significantly from the negative growth they saw in the first quarter," said IDC research director Nabila Popal. "This is in part due to heavy discounts and promotions in many regions, but also thanks to renewed customer confidence after WWDC when Apple finally announced its AI strategy." Both reports placed Samsung in the top spot in terms of smartphone shipments and market share, with Apple in second place. "Apple's global sales remained flat but recorded strong YoY growth in Europe and Latin America, which compensated for the low upgrade rates in the U.S. and share loss in China following Huawei's rise," the Counterpoint report said. "However, Apple saw improvement in sales in China during the 618 shopping festival where it offered attractive discounts. In H2, the new iPhones with Apple Intelligence are expected to drive upgrade demand." The reports follow research last week from IDC showing the market for personal computers (PCs) turning around after several quarters of decline. It was a trend, the research said, driven partially by demand for AI-powered computers. "Make no mistake, the PC market just like other technology markets faces challenges in the near term due to maturity and headwinds," Ryan Reith, group vice president with IDC's Worldwide Device Trackers, said in a news release. "However, two consecutive quarters of growth, combined with plenty of market hype around AI PCs and a less sexy but arguably more important commercial refresh cycle, seems to be what the PC market needed. The buzz is clearly around AI, but a lot is happening with non-AI PC purchasing to make this mature market show signs of positivity." Meanwhile, PYMNTS last week examined the potential impact Apple and Samsung's AI-powered smartphones could have on mobile commerce. Tyler Rice, founder of kimchi.co and an iOS developer, told PYMNTS he sees significant potential in AI-driven mobile commerce, noting that large language models (LLMs) allow for a better search experience for shoppers. Still, Rice warned of the challenges these upgrades face, particularly regarding costs. "These models are getting cheaper to run and seem to be on a curve downward, but they are currently expensive to run for search experiences or customer support experiences," he said. In spite of these obstacles, Rice sees substantial opportunities for businesses. "AI can better understand user's intentions, which can help engage customers, allowing them to more quickly find what they are looking for or get the information about a product that they need," he said.

Apple, Samsung phone shipments rose in second quarter

Global smartphone shipments by Apple and Samsung Electronics rose in the second quarter, according to a closely watched industry tracker, but their shares of the overall market dropped amid competition from Chinese rivals. Quarterly shipments of Apple's iPhones rose 1.5% from a year earlier to 45.2 million units, while those of the world's largest smartphone seller, Samsung, rose 0.7% to 53.9 million units, preliminary data from research firm International Data Corp. showed Monday. Global smartphone shipments rose 6.5% to 285.4 million units, IDC said. Apple was helped by a stronger performance in countries including China, while Samsung shipments were boosted by a focus on flagship models and its strategy of incorporating artificial intelligence into its products, IDC said. Apple's share of global shipments fell to 15.8% from 16.6% a year ago and Samsung's fell to 18.9% from 20.0%, while major Chinese companies gained. Xiaomi's market share rose to 14.8% from 12.4% a year ago and Vivo's rose to 9.1% from 7.9%, IDC said. Xiaomi's global smartphone shipments rose 27% from a year earlier to 42.3 million units and Vivo's shipments increased about 22% to 25.9 million units, ranking them third and fourth, respectively, the data showed. Chinese smartphone makers continued to target lower-end consumers to drive higher volume share at a time of weak demand, said Nabila Popal, research director with IDC's Worldwide Tracker team.

Apple Rides On Heavy Discounts And Promise Of AI To Stabilize iPhone Shipments, But It's Still Losing Out To Chinese Rivals - Samsung Electronics Co (OTC:SSNLF), Apple (NASDAQ:AAPL)

In the second quarter of 2024, both Apple Inc. AAPL and Samsung Electronics Co. SSNLF experienced a rise in smartphone shipments. However, the two tech giants saw a decrease in their overall market shares due to stiff competition from Chinese rivals. What Happened: The quarterly shipments of iPhones by Apple increased by 1.5% from the previous year to 45.2 million units, according to an IDC report on Monday. At the same time, Samsung's shipments rose by 0.7% to 53.9 million units. Despite this growth, Apple's global market share dropped from 16.6% to 15.8%, and Samsung's share fell from 20.0% to 18.9%. Chinese smartphone makers, on the other hand, saw an increase in their market shares. Xiaomi Corp. XIACF saw its market share rise from 12.4% to 14.8%, and Vivo saw its share increase from 7.9% to 9.1%. Xiaomi's global smartphone shipments rose by 27% to 42.3 million units, while Vivo's shipments increased by approximately 22% to 25.9 million units, placing them third and fourth, respectively. See Also: Bitcoin, Ethereum, Dogecoin Recover As Market Reacts Positively To Trump Escaping Assassination Attempt: Analyst Predicts King Crypto's Pullback Before Rise To $63.8K According to IDC, Apple's performance improved due to stronger sales in countries like China, while Samsung saw a boost in shipments by focusing on flagship models and integrating artificial intelligence into its products. Why It Matters: The rise of Chinese smartphone makers has been a consistent trend. In the first quarter of 2024, Apple's iPhone shipments dipped by 10%, while its Android competitors saw a rise. This led to a sales decline for Apple in China. However, the company managed to reverse this decline with an impressive March shipment growth. Moreover, in the first quarter of 2024, Huawei Technologies outpaced Samsung in global foldable smartphone shipments for the first time, marking a significant market shift. The global foldable smartphone market saw a 49% year-over-year increase in the first quarter of 2024, primarily due to significant shipment increases by Chinese OEMs. Read Next: Novo Nordisk's 'Miracle' Weight Loss Drug Ozempic Linked To 48% Lower Risk Of Dementia, Study Finds Image Via Unsplash This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs