Apple commanded a record quarter for global smartphone revenue, driven by its new iPhone 16 line-up, as device shipments grew on improved consumer demand and macroeconomic conditions, a report has shown.
Overall industry revenue accelerated 10 per cent annually to hit the highest levels for a September quarter, as shipments inched up 2 per cent to reach about 307 million units, Counterpoint Research said in its latest industry report on Friday.
California-based Apple, the world's most valuable company, held a 43 per cent market share for revenue in the three months ending September. Its chief rival, Samsung Electronics, was second with 16 per cent, followed by Chinese brands Xiaomi, Oppo and Vivo, it said.
Average selling prices also set a fresh high, with Apple again leading with $909, way ahead of the global average of $349 and Samsung's $295.
Still, Seoul-based Samsung maintained its top spot in device shipments, cornering a 19 per cent market share in the third quarter. Samsung briefly lost the number one spot to Apple in the fourth quarter of 2023.
Apple remained at second place with 16 per cent market share, followed by Xiaomi, Oppo and Vivo.
The slightly earlier launch of the iPhone 16 series, a product mix increasingly favouring the flagship's Pro models and a continued expansion in noncore markets, underpinned Apple’s momentum in the third quarter, Jeff Fieldhack, a research director at Hong Kong-based Counterpoint, wrote in the report.
However, he warned that there is reason to remain cautious, as the iPhone 16 line-up has seen mixed results across regions, with sales in key markets such as the US down on an annual basis compared to the iPhone 15 series.
Shipments in the US, the world's biggest economy, retreated as record-low upgrade rates continued to drag the market down, the study showed. India and China, two of the world's biggest smartphone markets, posted increases, with the latter particularly boosted by an improving economy and consumer demand, driven by home-grown brand Huawei Technology.
"The large installed base of three and four-year-old iOS devices is likely to keep a steady flow of iPhone 16 sales in the coming quarters – especially as Apple Intelligence features continue to roll out," Mr Fieldhack added.
Apple Intelligence is the company's much-anticipated dive into generative AI. The first wave of its features was launched this week across certain models of the iPhone, iPad and Mac.
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 AI 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”, Counterpoint said in a previous report, noting that more than half of smartphones shipments would be generative AI-capable by 2028 as "broader use cases continue to emerge and availability expands across price segments".
For the near term, the global smartphone market "has reached maturity" and shipments are expected to remain stable in the coming years, with growth to be potentially driven by emerging markets like India and those in the Middle East, Africa and South-east Asia, Tarun Pathak, a research director at Counterpoint, wrote in Friday's report.
"We expect smartphone revenue to continue to grow through 2028 as the premiumisation trend continues across markets. New technologies like generative AI and foldables are also likely to drive ASP growth as adoption rates rise," he added.
