Global smartphone shipments surged 5% year-over-year in Q3 2024, reaching 309.9 million units, marking the strongest Q3 performance since 2021. This growth was driven by aggressive launches from brands offering refreshed portfolios with strong value propositions, encouraging upgrades amid a favorable refresh cycle and robust consumer sentiment.
Key Market Trends:
- Samsung led with 57.5 million shipments, bolstered by a streamlined entry-level lineup.
- Apple retained second place with a record 54.5 million units, fueled by the iPhone 16 series’ strong debut in emerging markets.
- Xiaomi held third with 42.8 million units and a 14% market share, benefiting from strategic inventory positioning.
- OPPO and vivo rounded out the top five, shipping 28.6 million and 27.2 million units, respectively, with strong performances in Asia Pacific.
Analysis from Canalys:
- Apple’s Record Quarter:
- Strategic channel and supply chain optimizations drove record Q3 shipments.
- Post-WWDC’s Apple Intelligence announcements stimulated upgrades from older models.
- Diversified iPhone production, particularly in India, reduced lead times and boosted local demand.
- Supplementary production of previous-generation iPhones fueled operator channel shipments.
- Geopolitical obstacles and delayed Apple Intelligence deployment could hinder future performance.
- Intense Competition in the Low-End Market:
- Strong first half of 2024 buoyed by robust consumer demand and favorable economic conditions.
- OPPO’s rebranded A3 series saw significant growth in Southeast Asia.
- Rising component costs and channel saturation pose challenges to long-term profitability.
- Brands are shifting focus to mid-tier growth in emerging markets.
- Xiaomi is leveraging its strong open market presence and brand stores to elevate mid-to-high-end sales.
- vivo expanded its V40 series to boost mid-range offerings.
Outlook for the Remainder of 2024:
Vendors like vivo and HONOR are expanding their mid-range portfolios through innovative channel strategies. Emerging markets, such as Southeast Asia and Latin America, are outperforming the overall market, fueled by increased price competition and channel incentives in the entry-level segment. However, profitability in this segment remains a challenge due to inflationary pressures. In mature markets, AI-powered differentiation will drive growth in the premium segment.
Canalys remains cautiously optimistic about the future, with vendors focusing on inventory management and brand building to sustain growth.
