Canalys: Global smartphone shipments to grow 11% year-on-year in Q1 2024

According to the latest research from Canalys, global smartphone shipments grew 11% year-on-year in the first quarter of 2024 as global macroeconomic recovery and consumer demand picked up. Driven by positive sentiment from the launch of Galaxy AI, Samsung regained the top spot with a 20% market share. Apple ranked second with a 16% market share, facing resistance in strategic markets. Xiaomi ranked third with a 14% market share, and its newly launched Redmi A3 was competitive. Transsion ranked fourth with a 10% share; OPPO ranked fifth with an 8% share.

“The global smartphone market had a good start to the year, with a significant improvement compared to the same period last year,” said Canalys analyst Le Xuan Chiew. “The first quarter of 2023 struggled due to the economic downturn and inflationary pressures. But the market has rebounded with the stabilization of the economy, new product launches and strong promotional activities, providing smartphone vendors with an excellent opportunity to resume growth. Vendors are seizing new opportunities by promoting premium products, such as cutting-edge AI features and services on flagship products, and using an ecosystem-based product strategy. In 2024, all eyes are on Apple, which is likely to release an AI product that will provide the brand with an opportunity to promote its premium products and reignite product innovation across the ecosystem.”

Le Xuan Chiew added: "The market price is becoming increasingly polarized. The entry-level market has been saturated with new products from Xiaomi and Transsion. Meanwhile, vivo, OPPO and Samsung aim to gain a larger share in the high-end market by investing heavily in marketing and exploring new avenues for growth. Samsung Electronics has successfully increased sales of the S24 series and surpassed its predecessor by continuously promoting Galaxy AI. Looking ahead, vendors are increasing their investments in emerging regions such as Latin America and Southeast Asia. These markets have a thriving middle class, and smartphone penetration continues to rise compared to saturated markets, while preferences for premium models are also changing."

“Despite market optimism, smartphone vendors are keeping a close eye on inventory levels,” said Lucas Zhong, an analyst at Canalys Research. “Amid an uncertain global inflation environment, vendors are taking a cautious approach to inventory management to mitigate oversupply risks and ensure financial stability. Inventories are expected to be slightly adjusted in the second quarter of 2024, with the channel aiming to digest aggressive shipments from the past few quarters and make room for new product launches later this year to achieve more sustainable long-term growth.”