Is Samsung overtaking Apple as the leading phone maker? Well, well, well, looks like someone's got their groove back!
Apple experienced a significant 10 percent decline in iPhone shipments during the March quarter, reflecting a challenging market scenario in China despite a broader rebound in the smartphone industry.
Apple Slips, Samsung Rises
After a strong performance in the December quarter, where Apple briefly surpassed Samsung to become the world's leading phone maker, the tables have turned. Apple now holds the second spot with a 17.3 percent market share, while Samsung has reclaimed the throne with a 20.8 percent share.
Apple, headquartered in Cupertino, California, faced difficulties sustaining its sales in China following the launch of its latest iPhone series in September. Factors like the resurgence of Huawei Technologies increased domestic competition, and China's restrictions on foreign devices in workplaces contributed to this decline. IDC reported that Apple shipped 50.1 million iPhones in the first quarter.
Who Stands Where?
Xiaomi, a prominent Chinese smartphone manufacturer, secured the third position globally with a market share of 14.1 percent in the first quarter.
Samsung, based in South Korea, shipped over 60 million phones in the same period, boosted by the release of its latest flagship Galaxy S24 series at the start of the year. The sales of Galaxy S24 smartphones rose by 8 percent compared to the previous Galaxy S23 series during their initial three weeks of availability, according to Counterpoint data.
Apple's iPhone shipments totaled 50.1 million units in the first quarter, down from 55.4 million units in the same period last year. Furthermore, Apple's smartphone shipments in China declined by 2.1 percent in the fourth quarter of 2023 compared to the previous year.
In June, Apple will host its Worldwide Developers Conference (WWDC), focusing on updates to the software that powers iPhones, iPads, and other Apple devices. Despite rising handset prices, consumers are increasingly opting for premium models that they intend to use for longer periods. IDC researchers noted that Apple's consistently high Average Selling Price (ASP) reflects consumer preference for its higher-tier models. However, the company has recently offered unusual discounts of up to $180 through retail partners in China to stimulate sales.
The Android Agony
Apart from Samsung, Chinese rivals like Huawei and Xiaomi have intensified competition, making it challenging for Apple to maintain its market share.
These developments occur against a backdrop of increasing scrutiny of major tech companies by Western governments, including the recent legal action against Apple by the US government for alleged market monopolization with its iPhone.
Additionally, the European Union fined Apple $1 billion for allegedly leveraging its market dominance with its Apple Music application. This heightened scrutiny reflects a broader trend of demands for more oversight of large technology companies like Apple, Google, and Meta from Western nations.
So, will Samsung continue to reign supreme? Will Apple bounce back from this setback? Only time will tell in this ever-evolving smartphone saga.
Inputs from agencies
Image Source: Multiple agencies
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