In the first quarter of 2024, Apple faced a setback due to a significant decline in shipments amidst fierce competition from Android in the rapidly evolving smartphone market. Global smartphone shipments rose by 7.8% to reach 289.4 million devices during this period, with Samsung surpassing Apple to claim the top spot with a 20.8% market share. This shift comes after Apple's strong performance in the previous quarter, during which it briefly surpassed Samsung as the world's leading smartphone manufacturer. Despite experiencing a 10% decline in shipments, Apple now holds a 17.3% market share, losing ground to Chinese competitors like Huawei.
Xiaomi, a prominent player in the Chinese smartphone sector, secured third place with a 14.1% market share. Samsung's successful launch of the Galaxy S24 series, selling over 60 million units during the quarter, bolstered its performance and indicated a promising future for its latest flagship range. Counterpoint data reveals an 8% increase in global sales for the Galaxy S24 series compared to its predecessor, highlighting Samsung's enduring significance in the industry. Conversely, Apple witnessed a decrease in iPhone shipments, with 50.1 million handsets shipped in Q1 2024 compared to 55.4 million in the same period the previous year.
Apple's challenges extend beyond shipment numbers, particularly evident in its Chinese market where smartphone shipments declined by 2.1% in the final quarter of 2023. Geopolitical complexities impacting IT businesses are reflected in the restrictions imposed on the use of Apple products by Chinese government entities and corporations.
The upcoming June edition of Apple's Worldwide Developers Conference (WWDC) holds significant importance as it is expected to introduce changes to the software ecosystem powering its products. Investors are keen to learn more about Apple's advancements in artificial intelligence (AI), an area where the company has maintained a relatively low profile despite increasing industry focus.