BEIJING, January 22 (TMTPost)--Apple Inc. toppled Samsung to become the No.1 smartphone vendor in the world, but its still faces challenges from Chinese peers led by Huwei Technologies Ltd, according to recent notes of technology market research firms.  

Credit：Visual China

The smartphone shipments increased 8% year-over-year (YoY) to 320 million units  in the fourth quarter of 2023, ending seven consecutive quarters of decline, Canalys estimated. That quarter saw Apple let the smartphone market with a 24% share of shipments owing to iPhone 15 launches, and Samsung took the second place with 17%. Xiaomi trailed behind Samsung though recorded an over 20% YoY growth in the last quarter of 2023. Transsion first rose to fourth place, benefiting from emerging market recovery. Vivo completed the top five with a 7% market share. For the full year 2023, global smartphone shipments decreased YoY to 1.1 billion units. While Apple for the first time overtook Samsung as the year’s top vendor by shipments, both rounded to 20% share. Xiaomi, Oppo and Transsion held13%, 9% and 8% shares, respectively.

The global market is heading in the right direction, aided by improved holiday season demand,” said Canalys Senior Analyst Toby Zhu. “Products in the mid-to-low-end price range are the growth drivers in this recovery wave, helped by a rebound in demand in emerging markets, such as the Middle East and Africa, Asia Pacific and Latin America, Canalyst senior analyst Toby Zhu commented. Zhu noted plenty of new flagship Android launches taking advantage of the on-device AI trend, from Google Pixel and several Chinese vendors, such as HONOR, OPPO, vivo and Xiaomi.

As to the top two players, Canalys research manager Amber Liu expected Samsung’s launches in 2024, especially in the high-end segment with a focus on on-device artificial intelligence (AI),  will support its rebound as an innovation leader in the year. Liu said Apple showed resilience over the past two years, thanks to solid ongoing demand in the high-end segment, but Huawei’s comeback will threaten Apple’s market position. “Huawei’s improving strength and looming local competition in mainland China will challenge Apple to sustain its growth trajectory in mainland China while high-end replacement demand in other major markets, such as North America and Europe, is leveling off,” Liu said. “Apple must look to new market growth and ecosystem strength to reinvigorate its iPhone business.” 

Samsung for the first time has ceded its crown to Apple in more than a decade as the last time Samsung was not named at the top of the smartphone market since 2010, according to International Data Corporation (IDC). IDC data showed worldwide smartphone shipments dropped 3.2% YoY to 1.17 billion units in 2023, the lowest annual volume in a decade, mainly deiven by macroeconomic challenges and elevated inventory early that year. Growth in the second half of the year has cemented the expected recovery for 2024 since shipments in the fourth quarter a grew 8.5% YoY to 326.1 million units, higher than the forecast of 7.3% growth.  Apple shipped a total of 234.6 million iPhones in the year 2023, up 3.7% YoY, and its market share popped 1.3 points higher YoY to 20.1%. Samsung shipments declined 13.6% YoY to 226.6 million units with a share of 19.4%, compared with a 21.7% share in 2022.

Nabila Popal, reasearch director of IDC’s Worldwide Tracker team, called Apple the biggest winner for the year 2023, and noted Apple is not just  the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever, despite increased regulatory challenges and renewed competition from Huawei in China, its largest market. Popal believes Apple's ongoing success and resilience is in large part due to the increasing trend of premium devices, which now represent over 20% of the market, fueled by aggressive trade-in offers and interest-free financing plans.

However, Ryan Reith, group vice president with IDC’s Worldwide Mobility and Consumer Device Tracker, noted the shift in ranking at the top of the market highlights the intensity of competition in the smartphone market. “Huawei is back and making inroads quickly within China, Brands like OnePlus, Honor, Google, and others are launching very competitive devices in the lower price range of the high end. And foldables and increased discussions around AI capabilities on the smartphone are gaining traction,” Reith said.