Modest Growth Expected in Global Smartphone Market in 2024, Says Canalys Report
The global smartphone market is projected to experience modest growth in the year 2024, as companies focus on rebuilding their stock in anticipation of a potential demand resurgence. According to a recent report Canalys, this cautious approach is driven the relatively healthier inventory levels that companies are expected to close this year with.
One factor that is likely to impact regional performance in the smartphone market is the presence of regional conflicts and geopolitical tensions. To navigate this challenging landscape, vendors are advised to remain flexible and adaptable in their strategies, seize growth opportunities in specific regions, and closely monitor end demand to optimize resource allocation and minimize disruptions.
Lucas Zhong, a research analyst at Canalys, emphasized the need for vendors to continuously enhance their capabilities and focus on profit and product portfolio optimization in order to stay competitive in the saturated market.
In Q3, the global smartphone market experienced a slight decline of 1%, with vendors releasing new models following a healthy inventory level in Q2. Samsung maintained its position as the market leader, shipping 57.4 million units with a 20% market share. Apple followed closely in second place, shipping 50 million units and gaining a 17% market share, driven strong initial demand for the iPhone 15 series with USB-C upgrade. Xiaomi secured the third position, shipping 41.5 million units and achieving a 2% annual growth thanks to strong performance in emerging markets. OPPO, including OnePlus, captured the fourth position with 26.4 million units of shipment and a 9% market share. TRANSSION Group, which includes Tecno, Infinix, and itel brands, maintained its fifth position, shipping 26 million units.
Sanyam Chaurasia, a senior analyst, highlighted the rising demand for fresh offerings in emerging markets as the holiday season approaches. Xiaomi and the TRANSSION Group were the only brands among the top five to experience growth, showcasing their strong performance in the previous quarter.
As vendors aim to solidify their positioning in the premium market, the increasing availability of foldable smartphone options presents a challenge to Samsung’s current dominance in this segment. OPPO strategically introduced the Find N3 and OnePlus Open models in different regions, demonstrating the ambition of Android brands to capture the global foldable market, according to Zhong.
Overall, the global smartphone market is expected to navigate through regional conflicts and geopolitical tensions while seeking growth opportunities and optimizing resource allocation in different regions. Vendors will continue to innovate and adapt to changing consumer demands to stay competitive in this highly competitive industry.