In the first quarter of 2024, Samsung has once again secured the top spot in smartphone sales, a position it has held for several years now. However, the reasons behind this success are more nuanced than just advancements in AI or weaknesses in Apple’s iPhone lineup.
New sales data for the quarter, compiled and published by Canalys, reveals that worldwide smartphone sales experienced a 10% year-over-year growth, reaching over 296 million units. This growth was largely driven by expansion in emerging markets.
Analyzing Samsung’s performance, Canalys analyst Sanyam Chaurasia identifies two key factors. Firstly, the launch of the S24 a month earlier in the quarter compared to its predecessor resulted in a 35% increase in device shipments year-over-year. Secondly, there’s mention of an “AI-driven innovation” trend influencing the market, although it’s unclear if this assessment accurately reflects Samsung’s success given the extended selling period for the S24.
Apple’s sales trajectory for 2023-2024 resembles that of 2020-2021, albeit with a higher peak during the holiday quarter. However, concerns about iPhone sales in the first quarter have been circulating, with speculations of a potentially weak quarter, echoing warnings from Apple’s January earnings announcement.
Despite Samsung’s lead in smartphone sales, the pattern of competition between Apple and Samsung remains consistent over the years. Apple typically dominates with the iPhone launches in the fall, while Samsung regains the lead with the release of its flagship Galaxy series and budget-friendly smartphones.
Interestingly, Samsung’s mobile devices business reported a decline in operating profit compared to the previous year, despite the overall growth in the smartphone market. This underscores the complexity of factors influencing the industry’s dynamics.
Ultimately, the true picture of smartphone market dynamics will emerge with Apple’s quarterly earnings report release on May 3. And while the narrative of AI driving Samsung’s success may not be fully supported by the data, Apple is expected to address any competitive challenges at WWDC in June.
