Thursday, June 20, 2024
Business

Apple surpasses Samsung to become the largest smartphone manufacturer globally.

Apple vs Samsung: iPhone maker overtakes South Korean giant as world's largest  smartphone maker

Apple has secured the predominant portion of the global smartphone market, displacing Samsung from the top position for the first time in 12 years.

According to data from the International Data Corporation (IDC), the American tech giant represented over 20% of the phones shipped last year. Samsung, on the other hand, claimed a market share of 19.4%, with Chinese smartphone manufacturers Xiaomi, OPPO, and Transsion trailing behind.

Smartphone sales experienced a decline as a result of reduced consumer spending during the pandemic. The IDC’s report indicates that approximately 1.2 billion smartphones were sold last year, marking a decline of over 3% compared to the previous year. This represents the lowest sales volume in a decade, as consumers tightened their budgets in response to economic challenges and high interest rates. Nonetheless, experts anticipate a recovery in the market this year.

Apple’s Ascension

Nonetheless, the IDC has declared Apple, which sold over 234 million phones last year, as “the biggest winner.”

“Apple not only exhibits positive annual growth as the sole player in the Top 3 to do so but also secures the annual number 1 position for the first time ever,” stated Nabila Popal from the IDC.

This accomplishment is noteworthy given the heightened regulatory challenges and resurging competition from Huawei in China, Apple’s largest market. Huawei, facing restrictions on purchasing chips utilizing US technology due to national security concerns, has made significant progress in developing its own chips.

Apple’s success is attributed to factors such as trade-in offers for older models and interest-free financing plans, propelling the demand for premium devices.

Samsung’s Downturn

This development is a setback for Samsung, which held the position as the world’s leading manufacturer of memory chips, smartphones, and televisions until now.

The South Korean electronics giant recently cautioned that its profits would decrease more than anticipated, citing weak global demand for consumer electronics. Moreover, Samsung is contending with competition from more affordable Android models, including Transsion and Xiaomi, which are gaining traction among budget-conscious consumers and in emerging markets.

According to the IDC, the smartphone market is entering a “very interesting time,” marked by a growing number of Android providers diversifying the market. Customers are increasingly prioritizing foldable phones and AI capabilities.

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