Boosted by better consumer confidence and positive economic factors, reports say that the global smartphone sell-through volumes increased by more than 6% YoY in the second quarter of this year.
Worldwide smartphone sell-through volumes increased significantly year-over-year, showing signs of recovery in Q2 2024, according to reports published by Counterpoint Research and IDC. Seeing shipments of over 285.4 million units in the second quarter, IDC regarded this trend as the fourth straight quarter of increase. Subsequently, Counterpoint considered it the highest YoY growth in the past three years.
This growth also represents the third consecutive quarter of market growth, fuelled by improving consumer sentiment and favourable macroeconomic conditions from Counterpoint’s view. However, IDC inferred that while this builds momentum for the anticipated recovery this year, demand has not fully rebounded and continues to face challenges in many markets.
According to Counterpoint, In Q2 2024, almost all regions experienced YoY growth. Europe and Latin America (LATAM) experienced the highest growth rates, with both areas showing double-digit YoY increases due to improved consumer sentiment and purchasing activity compared to 2023.
Huawei’s resurgence and an early start to the 618 shopping festival in China contributed to a steady recovery. Emerging markets, particularly in LATAM and Asia, outperformed more developed markets.
Counterpoint forecasted a 4% growth in smartphone sales for 2024, following a rebound from the decade-low in 2023. Research director Tarun Pathak attributed the recovery to improved consumer sentiment and inventory levels, with nearly all markets showing growth. Brands have also boosted sales by updating portfolios and adding features to lower price ranges.
On the other hand, Nabila Popal from IDC‘s Worldwide Tracker team noted that while the top five companies are showing YoY growth and recovery is progressing, competition is intensifying, and prices are polarising.
As Apple and Samsung are thriving at the premium end, Chinese OEMs are focusing on low-end shipments due to weak demand, affecting mid-range device sales.
She further said, “Still, there is lots of excitement in the smartphone market today thanks to higher average selling prices (ASPs) and the buzz created by Gen AI smartphones, which are expected to grow faster than any mobile innovation we have seen to date and forecast to capture 19% of the market with 234 million shipments this year.”
Both reports agreed that in Q2 2024, Samsung retained the foremost position in market performance. While Counterpoint held solid sales of the Galaxy S24 series responsible, IDC thanked Samsung’s emphasis on robust AI strategy for 18.9% shipment share.
According to Counterpoint, Apple’s global sales remained steady, with notable YoY growth in Europe and Latin America and improved sales in China. IDC reported that Apple held second place with a 15.8% share, benefiting from this. Both leading companies saw modest YoY growth.
Counterpoint recorded Xiaomi’s growth of 22% year-over-year, boosted by the Redmi 13 and Note 13 series, gaining around 2% market share. Vivo led in China and India, while OPPO, focusing on high-end devices, aimed for long-term profitability despite a lower market share impact.
IDC’s Q2 2024 data showed Xiaomi in third place with a 14.8% share, Vivo fourth with 9.1%, and OPPO fifth with 9.0%. Both Xiaomi and Vivo saw strong growth in emerging markets and China, whereas OPPO’s modest growth came from its international expansion.
IDC also forecasted a competitive second half of the year among these top OEMs.
Counterpoint concluded that the combined share of the top five brands decreased YoY due to competition from rising brands like Huawei, HONOR, Motorola, and Transsion. The top 10 brands’ share approached 90%, indicating market consolidation and fierce competition.
Huawei made substantial gains in China, HONOR and TECNO expanded to new regions, and Motorola rose two ranks to achieve its highest global market share in a decade in Q2.
Senior Analyst Ankit Malhotra from Counterpoint observed that the global smartphone market is experiencing slow but steady volume growth, primarily driven by replacement cycles, and has become a zero-sum game among OEMs.
He forecasts modest volume increases but expects faster revenue growth due to premiumisation, new form factors like foldables, and innovations like GenAI.
Meanwhile, Will Wong of IDC Asia/Pacific also agreed that Q2 2024 showed gradual growth, influenced by a low comparison base. He noted that OEMs adjusted specs and pricing due to BOM cost pressures, with Q2 serving as a precursor to expected growth driven by Gen AI smartphones in the latter half of the year.
