Apple's iPhone Global Shipments Dive Around 10% in Q1 as Xiaomi's Surge 33.8%

TMTPost -- Statistics from a market analysis and advisory services provider showcased Apple Inc. suffered deeper-than-expected decline in iPhone delivery this year amid increasing challenges from Chinese rivals.

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Global smartphone shipments increased 7.8% year-over-year (YoY) to 289.4 million units in the first quarter of 2024, while iPhone shipments that quarter dived 9.6% YoY to 50.10 million units, according to preliminary results released by the International Data Corporation (IDC). Apple’s shipments missed analysts’ estimates of 51.7 million units, suggested the U.S. tech giant handed back top smartphone seller title to Samsung. The South Korean company shipped 60.1 million units in the quarter ended March with a 0.1% YoY decline. Samsung took 20.8% of market share that quarter, down from 22.5% a year ago, and Apple’s share dropped 3.4 points YoY to 20.7%.

The smartphone recovery continues to move forward with market optimism slowly building among the top brands, Ryan Reith, group vice president with IDC's Worldwide Mobility and Consumer Device Trackers, commented. Reith noted Apple managed to capture the top spot at the end of 2023, Samsung successfully reasserted itself as the leading smartphone provider in the first quarter. While IDC expected Samsung and Apple to maintain their hold on the high end of the market, the resurgence of Huawei in China, as well as notable gains from Xiaomi, Transsion, OPPO/OnePlus, and vivo will likely have both OEMs looking for areas to expand and diversify.

According to IDC, Xiaomi took the third position with shipments of 40.8 million units in the first quarter, surging 33.8% YoY. The Chinese smartphone leader was followed by two domestic peers-- Transsion and OPPO, which shipped 28.5 million units and 25.2 million units, respectively, representing a 84.9% YoY rise and a 8.5% YoY drop. One of emerging trends in the smartphone market over the past two years is that a shift in power among the Top 5 companies, which will likely continue as market players adjust their strategies in a post-recovery world, said Nabila Popal, research director with IDC's Worldwide Tracker team. “Xiaomi is coming back strong from the large declines experienced over the past two years and Transsion is becoming a stable presence in the Top 5 with aggressive growth in international markets. In contrast, while the Top 2 players both saw negative growth in the first quarter, it seems Samsung is in a stronger position overall than they were in recent quarters,” Popal said.

Another market research firm Canalys estimated global smartphone shipments grew 11% YoY in the first quarter, and Samsung also regained the top spot with a 20% share, driven by positive sentiment from the introduction of Galaxy AI. Apple, second to Samsung, took a 16% market share, facing headwinds in strategic markets. Xiaomi boasted a 14% share as the third owing to its competitive volume driver, the newly launched Redmi A3. Transsion held fourth place with a 10% share, while OPPO completed the top five with 8%.

Previous market research data had issued an alert that Apple this year is facing increasing pressure on iPhone sales amid competition from Chinese rivals, especially Huawei Technologies Ltd.

Huawei ranked first in China in terms of smartphone sales during the initial two weeks of 2024, overtaking arch rivals like Apple, OPPO, vivo and Xiaomi, according to Counterpoint Research, a global technology market research firm.This is the first time for Huawei’s to ascend to the top spot since the sanctions imposed by the U.S. government in 2019 have continuously eroded its sales share.

The Huawei Mate 60 series, powered by its in house Kirin 9000S chip, is a key driver of Huawei’s recent success, a Counterpoint report in February said, adding that the strong brand loyalty and the successful launch of the HarmonyOS operating system also fueled the success. The report estimated that China’s high-end smartphone market grew by 27% in 2023. While Apple maintained the leadership in the market with its outstanding performance in the first half of 2023, its market share began to be eroded by Huawei and other Chinese brands from the third quarter of the year. Counterpoint also expects Chinese brands will continue their efforts to capture shares in the high-end market.

iPhone shippments in China dived about 33% YoY in February, China Academy of Information and Communications Technology (CAICT), a scientific research institution which is subordinate to the Ministry of Industry and Information Technology, estimated last month. According to CAICT data, there were a total of 46.035 million smartphones shipped in the first two months of 2024, increasing 14.6% YoY, while Apple recorded decrease in iPhone sales for a second straight month in China. Apple delivered around 5.5 million iPhones in January, with a 39% YoY decrease even deeper than a month later.