Samsung overtakes Apple as smartphone shipments decline amid rising competition

Apple Inc. faced a setback in the first quarter of 2024 as its smartphone shipments dropped by around 10%, marking a significant decline.

This decline comes amidst fierce competition in the smartphone market, with both Samsung and Chinese manufacturers vying for dominance.

While Apple experienced a downturn, the global smartphone market saw a 7.8% increase in shipments, reaching a total of 289.4 million units. Samsung emerged as the top phonemaker, overtaking Apple with a market share of 20.8%.

Samsung’s success can be attributed to the successful launch of its latest flagship smartphone lineup, the Galaxy S24 series. With over 60 million phones shipped during the period, Samsung’s Galaxy S24 smartphones experienced an impressive 8% surge in sales compared to the previous year’s model.

In contrast, Apple slipped to the second spot with a 17.3% market share, shipping 50.1 million iPhones in the first quarter, a notable decrease from the same period last year.

Challenges in the Chinese market further compounded Apple’s woes, with smartphone shipments declining by 2.1% in the final quarter of 2023. This decline was primarily due to restrictions imposed by Chinese companies and government agencies on the use of Apple devices by employees.

Investors are eagerly anticipating Apple’s Worldwide Developers Conference (WWDC) scheduled for June, where updates to the software powering its devices are expected to be unveiled. Of particular interest is the integration of artificial intelligence (AI) technology, an area where Apple has been relatively quiet.

Despite these challenges, Apple remains poised to navigate the competitive landscape and maintain its position as a key player in the smartphone industry.