Samsung is top smartphone vendor in Q2 as positive consumer trends lift shipments 8%

South Korean tech giant leads with a 19% market share, while Apple leads revenue on higher average selling prices

Samsung has held its lead in the global smartphone market, driven by the popularity of its Galaxy S24 line-up. Reuters

Samsung Electronics has maintained its status as the world's top smartphone vendor as the industry's shipments jumped 8 per cent year-on-year in the second quarter of 2024, driven by improved consumer sentiment and macroeconomic conditions, a new report has shown.

The growth in the three months to the end of June marked the third consecutive quarter of expansion for the global smartphone market, Counterpoint Research said in its quarterly update on Friday.

Samsung, the world's biggest mobile phone manufacturer, cornered 19 per cent of shipments during the quarter, driven by the strong performance of its mid-tier Galaxy A series and continued popularity of its flagship Galaxy S24 line-up, the Hong Kong-based research firm said.

The Seoul-based company also has the opportunity to maintain or even build on to its lead with last month's launch of its newest Galaxy Z foldable smartphones.

Apple came in second with a 16 per cent market share. The world's most valuable company, whose latest generation of flagships is the iPhone 15 series, is widely expected to unveil its next iPhones in September. They are anticipated to feature the new Apple Intelligence platform.

China's Xiaomi was a close third with a 15 per cent market share and posted the best annual shipment growth of 27 per cent. Rounding out the top five were Oppo and Vivo, which each had a 9 per cent share.

Global smartphone revenue also grew 8 per cent annually during the three-month period, with Apple leading with a 42 per cent share, as the market's average selling prices climbed to their highest second-quarter levels, the report said.

California-based Apple also led revenue in the first quarter of 2024 with an almost identical 41 per cent share, when global revenue hit a new high.

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The growth of the smartphone market was reflected in improved consumer sentiment in several European markets, particularly in Western Europe, which grew faster than Central and Eastern Europe, Counterpoint said. Both Europe and the Asia-Pacific region registered double-digit growth.

In the Middle East and Africa, shipments posted single-digit growth, driven by a more favourable economic environment, as well as an increasing push from Chinese brands, it added.

“Smartphone shipments registered strong growth as key regions continued on a recovery path,” Prachir Singh, a senior analyst at Counterpoint, wrote in the report.

“The Caribbean and Latin America emerged as the fastest-growing region as Chinese OEMs [original equipment manufacturers] continued their aggressive push, helped by increased demand in smaller markets in the region.”

Smartphones are the most popular consumer electronics devices. The industry has slowed down in the past two years due to factors including supply chain issues, high inflation and consumers holding off on upgrading their devices.

However, the upturn is being fuelled by the growth of emerging market economies, a resurgence in consumer spending, an increase in average selling prices and the swift integration of generative artificial intelligence devices.

The share of smartphones powered by generative AI is projected to hit 18 per cent in 2024, with these devices the “perfect platform for making AI accessible to everyone”, said Tarun Pathak, research director at Counterpoint.

“Generative AI … is revolutionising smartphones. It offers personalised experiences, enhances existing features and allows for more intuitive interactions,” he said.

“In terms of shipments, we see a gradual recovery for the global smartphone market. The ongoing premiumisation trend, coupled with the AI trend, is likely going to push up the [average selling prices] and revenues in the coming quarters.”