In the second quarter of 2024, both Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. (OTC:SSNLF) experienced a rise in smartphone shipments. However, the two tech giants saw a decrease in their overall market shares due to stiff competition from Chinese rivals.
What Happened: The quarterly shipments of iPhones by Apple increased by 1.5% from the previous year to 45.2 million units, according to an IDC report on Monday.
At the same time, Samsung's shipments rose by 0.7% to 53.9 million units. Despite this growth, Apple's global market share dropped from 16.6% to 15.8%, and Samsung's share fell from 20.0% to 18.9%.
Chinese smartphone makers, on the other hand, saw an increase in their market shares. Xiaomi Corp. (OTC:XIACF) saw its market share rise from 12.4% to 14.8%, and Vivo saw its share increase from 7.9% to 9.1%.
Xiaomi's global smartphone shipments rose by 27% to 42.3 million units, while Vivo's shipments increased by approximately 22% to 25.9 million units, placing them third and fourth, respectively.
According to IDC, Apple's performance improved due to stronger sales in countries like China, while Samsung saw a boost in shipments by focusing on flagship models and integrating artificial intelligence into its products.
Why It Matters: The rise of Chinese smartphone makers has been a consistent trend. In the first quarter of 2024, Apple's iPhone shipments dipped by 10%, while its Android competitors saw a rise. This led to a sales decline for Apple in China. However, the company managed to reverse this decline with an impressive March shipment growth.
Moreover, in the first quarter of 2024, Huawei Technologies outpaced Samsung in global foldable smartphone shipments for the first time, marking a significant market shift. The global foldable smartphone market saw a 49% year-over-year increase in the first quarter of 2024, primarily due to significant shipment increases by Chinese OEMs.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote