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Apple (NASDAQ:AAPL) took the top spot for the first time with a 20% market share and 229.2M phone shipments in 2023, in spite of facing challenges in core markets, according to research firm Canalys.
The tech giant also topped the global smartphone market in the fourth quarter of 2023 for the most phones shipped.
Apple made 229.2M smartphone shipments last year, compared to 232.2M in 2022, downabout 1.2% year-over-year, the report added.
Samsung (OTCPK:SSNLF) slipped to the number two position for the year, after having topped shipments in 2022. The South Korean company’s shipments were 225.4M units in 2023, compared to 257.9M in 2022.
Canalys noted that global smartphone market experienced an 8% year-on-year growth in Q4 2023, reaching 319.5M units, indicating signs of stabilization and recovery.
“The recovery in emerging markets led to a rebound in the second half of 2023, narrowing the decline,” said Sanyam Chaurasia, senior analyst at Canalys.
Chaurasia added that due to additional strategic focus and resources from vendors who launched several mass-market models, Latin America, Africa and the Middle East showed strong recovery momentum from the third quarter of 2023 onwards.
However, mature markets, including Mainland China, Europe and North America, still face strong headwinds because of subdued consumer spending and reduced channel investments, Chaurasia noted.
In the fourth quarter of 2023, Apple (AAPL) claimed the number one position by shipping 78.1M smartphones, versus 73.2M in same period a year ago. The Cupertino, Calif.-based company had a 24% market share, followed by Samsung at 17% and Xiaomi (OTCPK:XIACF) (OTCPK:XIACY) with 13%.
“Smartphone vendors witnessed a significant profitability improvement despite the market declining in 2023,” said Toby Zhu, senior analyst at Canalys.
Looking ahead in 2024:
Zhu said that investing in on-device Artificial Intelligence, or AI, for the high-end segment and expanding shipments in mid-to-low-end segments will become two strategic directions for smartphone vendors in 2024
Zhu added that Samsung will use generative AI in its long-term product strategy. Meanwhile, Chinese companies such as Xiaomi, vivo, OPPO and HONOR have already released flagship devices with gen AI capabilities in their home markets.
“The mass-market segment will be the center for vendors, while value-for-money proposition and affordability are core product strategies in the short term,” commented Zhu.
Zhu noted that companies will continue to focus on increasing volume and scales to maintain their wallet share and priority level in retail channels and supply chains even in the volatile environment.
“In 2024, emerging markets will remain a strategic battleground for most smartphone vendors seeking growth,” said Chaurasia.
Total smartphone shipments for the full year 2023 were 1.14B, declining about 4.3% versus 2022.
Last week, research firm IDC said fourth-quarter iPhone shipments in China declined 2.1% year-over-year.
On Tuesday, TF International Securities’ analyst Ming-Chi Kuo said that iPhone shipments in 2024 are likely to decline by about 15% year-over-year due to structural challenges.
Apple has been facing competition from Chinese rivals such as Huawei Technologies and Xiaomi (OTCPK:XIACF) (OTCPK:XIACY) in the smartphone market.
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