iTWire - Apple tops global smartphone shipments for first time in 2023
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Wednesday, 17 January 2024 10:16
Apple tops global smartphone shipments for first time in 2023 Featured
By Sam Varghese
Apple has grabbed the top spot in global smartphone shipments for 2023, the first time it has done so and also the first time that a company other than Samsung has taken that position since 2010, the technology analyst firms Canalys and IDC report.
IDC said while the global market continued to face challenges, with a drop of 3.2% in 2023 to 1.17 billion units, growth in the second half of 2023 has set the stage for a recovery in 2024.
Canalys said shipments in the last quarter of 2023 had grown 8% year-on-year to reach 320 million units, after seven quarters of decline. Apple took 24% of shipments, Samsung 17% and Xiaomi 13%.
Nabila Popal, research director with IDC's Worldwide Tracker team, said: "While we saw some strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023, stemming from rapid growth in emerging markets, the biggest winner is clearly Apple.
"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, fuelled by aggressive trade-in offers and interest-free financing plans."
Ryan Reith, group vice-president with IDC's Worldwide Mobility and Consumer Device Trackers, added: "The overall shift in ranking at the top of the market further highlights the intensity of competition within the smartphone market.
"Apple certainly played a part in Samsung's drop in rank, but the overall Android space is diversifying within itself. 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. Overall, the smartphone space is headed towards a very interesting time."
“The 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.
"Meanwhile, with inventory pressure and global inflation continuing to ease, vendors can finally focus on product innovation and long-term strategy developments, laying down solid foundations for the year ahead.
"There have already been 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.”
Canalys research manager Amber Liu said the top two players were eagerly looking for new growth drivers for their smartphone businesses as both suffered market share declines in the fourth quarter of 2023.
"In 2023, Samsung focused on the mid-to-high-end segment for profitability, but lost share in the low-end segment and also its leading position in the global market," she said.
"Its 2024 product launches, especially in the high-end segment with a focus on on-device AI will support its rebound as an innovation leader in 2024.
“On the other hand, Apple showed resilience over the past two years, thanks to solid ongoing demand in the high-end segment. The expanded positioning of its iPhone 15 series has pointed to the future direction of Apple’s portfolio strategy to reach a broader range of consumer segments.
“But 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 levelling off. Apple must look to new market growth and ecosystem strength to reinvigorate its iPhone business.”
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