Samsung, Apple and Xiaomi Command Half of the Global Smartphone Market in Q1 2024

[Daniel Nenni]

While not quite a duopoly, Apple and Samsung have long been known to produce the most popular smartphones from a global perspective. Over the past years, however, Chinese tech companies have started catching up and, at times, even overtaking Apple's iPhone product lines.

Our chart based on data from the IDC Quarterly Mobile Phone Tracker shows that between January and March 2024, roughly one out of five of the 289 million smartphones shipped were Samsung devices, while Apple commanded a market share of 17.3 percent. Xiaomi, however, wasn't far behind with a 14.1 percent share in the market translating to around 41 million smartphones shipped in the first quarter of the year.

Rounding out the four smartphone vendors with the highest amount of devices shipped is Transsion, which produced every tenth smartphone sold in the first three months of 2024. Although the Chinese company entered IDC's top 5 for the first time in the second quarter of 2023, it's been around since 2006. Its devices have become increasingly popular in emerging markets like the African continent.

Looking at smartphone vendor market share over time, Apple and Samsung have been on top for most of the first quarters since 2014. The notable exception is Huawei, which rose to prominence in the latter half of the 2010s and even managed to overtake Samsung for the best-selling smartphone brand worldwide in the second quarter of 2020 after already coming within 3.3 percentage points in the three months prior.

Huawei's rise was abruptly halted by the end of 2020, reportedly due to the increasing pressure of U.S. sanctions on the company. Its shoes were quickly filled by its Chinese competitors Xiaomi and Oppo, which had combined market shares ranging from 22 to 25 percent in the first quarters of 2021, 2022, 2023 and 2024.

Infographic: Samsung, Apple and Xiaomi Command Half of the Global Smartphone Market in Q1 2024

This chart shows the global quarterly market share of the top 5 smartphone vendors, by shipped devices.

www.statista.com

 

[blueone]

The other half of the story is that Apple's share of smartphone gross profits is 80%. At least it was in 2023.

Infographic: Apple in the Smartphone Market: Win Where It Matters

This chart shows Apple's estimated share of global smartphone shipments, revenue and operating profits in Q1 2023.

www.statista.com

By comparison Apple's competitors are buying business with lower pricing, and trying to make it up in sales volumes. If that's their strategy, it seldom ends well.

 

[nghanayem]

The other half of the story is that Apple's share of smartphone gross profits is 80%. At least it was in 2023.

Infographic: Apple in the Smartphone Market: Win Where It Matters

This chart shows Apple's estimated share of global smartphone shipments, revenue and operating profits in Q1 2023.

www.statista.com

By comparison Apple's competitors are buying business with lower pricing, and trying to make it up in sales volumes. If that's their strategy, it seldom ends well.

Alternatively I think apple is just an outlier. Consumer electronics has always been very low margin. Another point in Apple’s favor is that they cut out many of the merchant chip vendors and can capture that margin themselves. Finally in the android world there is little differentiation so you need to offer value (be it from better parts cheaper prices or both”). Apple being the only one on the IOS ecosystem gives them better selling power.

 

[Daniel Nenni]

Huawei sure did get clobbered by the US restrictions.

 

[milesgehm]

Alternatively I think apple is just an outlier. Consumer electronics has always been very low margin. Another point in Apple’s favor is that they cut out many of the merchant chip vendors and can capture that margin themselves. Finally in the android world there is little differentiation so you need to offer value (be it from better parts cheaper prices or both”). Apple being the only one on the IOS ecosystem gives them better selling power.

Apple owns IOS and App Store plus gets paid by Google to favor their search. While Android makes don't pay Google for using Android, they don't get to capture that value. Apple is uniquely positioned.

 

[blueone]

Apple owns IOS and App Store plus gets paid by Google to favor their search. While Android makes don't pay Google for using Android, they don't get to capture that value. Apple is uniquely positioned.

I completely agree, but I think the App Store and the royalty for defaulting to Google search are accounted for separately.

I think iPhone profitability is so high because the customers like iPhones better (I do) than Android phones, so they're willing to pay more, and because they're addicted to the Apple ecosystem. I just got back from the gym, and pretty much every young woman I saw there (and there were many) had an Apple Watch on their wrist, AirPods in their ears, and a top-of-the-line latest iPhone tucked into some article of clothing. (Isn't tucking an iPhone into your sports bra uncomfortable? Never mind. Don't speculate.) I've seen this affinity to Apple products for years.

I doubt Warren Buffett made his decision to invest in Apple this way, but how can you not own stock in a company where so many young women so obviously prefer their high-tech products? It's similar to the reason I like Costco stock. How can I not own stock in a company where 50+ people line up outside the stores' doors before they open on a weekday morning, even in the rain or snow?

 

[Barnsley]

The other half of the story is that Apple's share of smartphone gross profits is 80%. At least it was in 2023.

Infographic: Apple in the Smartphone Market: Win Where It Matters

This chart shows Apple's estimated share of global smartphone shipments, revenue and operating profits in Q1 2023.

www.statista.com

By comparison Apple's competitors are buying business with lower pricing, and trying to make it up in sales volumes. If that's their strategy, it seldom ends well.

The harsh realties when folk say "Company X" is taking market share from apple in mobile phones , just mention who is making the profits.

 

[Barnsley]

Alternatively I think apple is just an outlier. Consumer electronics has always been very low margin. Another point in Apple’s favor is that they cut out many of the merchant chip vendors and can capture that margin themselves. Finally in the android world there is little differentiation so you need to offer value (be it from better parts cheaper prices or both”). Apple being the only one on the IOS ecosystem gives them better selling power.

Indeed , so in the price points where the phones have comparable pricing Apple dominate.

I am not a fan of apple and I like my $300 SgD phones

 

[Barnsley]

I completely agree, but I think the App Store and the royalty for defaulting to Google search are accounted for separately.

I think iPhone profitability is so high because the customers like iPhones better (I do) than Android phones, so they're willing to pay more, and because they're addicted to the Apple ecosystem. I just got back from the gym, and pretty much every young woman I saw there (and there were many) had an Apple Watch on their wrist, AirPods in their ears, and a top-of-the-line latest iPhone tucked into some article of clothing. (Isn't tucking an iPhone into your sports bra uncomfortable? Never mind. Don't speculate.) I've seen this affinity to Apple products for years.

I doubt Warren Buffett made his decision to invest in Apple this way, but how can you not own stock in a company where so many young women so obviously prefer their high-tech products? It's similar to the reason I like Costco stock. How can I not own stock in a company where 50+ people line up outside the stores' doors before they open on a weekday morning, even in the rain or snow?

Apple is aspirational product in large parts of the world. Its why they have large resale value retention.

Nobody is aspiring to own Xiaomi /Samsung / Huawei phones.

 

[blueone]

The harsh realties when folk say "Company X" is taking market share from apple in mobile phones , just mention who is making the profits.

Taking market share does not necessarily equate to profits.

 

[blueone]

Apple is aspirational product in large parts of the world. Its why they have large resale value retention.

Nobody is aspiring to own Xiaomi /Samsung / Huawei phones.

Agreed, but I know some Samsung fans in the US, mostly the Fold5. Can't speak to the rest of the world. I also suspect Apple is going to pick up some share in India, because they're about to become the home team, at least for assembly.

 

[Barnsley]

Agreed, but I know some Samsung fans in the US, mostly the Fold5. Can't speak to the rest of the world. I also suspect Apple is going to pick up some share in India, because they're about to become the home team, at least for assembly.

India a big country and there are enough folk with piles of cash who want an Apple phone over Oppo/Vivo/Xiaomi/Samsung

I use Samsung but then my phone is $300SGD , and they have now removed a lot of the Samsung bloatware stuff they forced on you. So I am OK with them

 

[tonyget]

The harsh realties when folk say "Company X" is taking market share from apple in mobile phones , just mention who is making the profits.

The reality is drop in market share will drag Apple stock price down

 

[Barnsley]

The reality is drop in market share will drag Apple stock price down

They are still making Billions!!

I am sure its number of units that is a concern not share of market anyway.

Maybe need to start losing Billions in order to build up "potential"