Global Smartphone Market Grows 5% in Q3, Apple Hits Record High

The global smartphone market continued its upward trend in Q3 2024, with shipments rising 5% year-over-year, according to research from Canalys. This marks the fourth consecutive quarter of growth, driven by strong demand in emerging markets and the early stages of a replacement cycle in regions like North America, China, and Europe.

Samsung maintained its lead in the market with an 18% share of shipments in Q3, narrowly ahead of Apple, which also captured 18%. Xiaomi secured third place with a 14% market share, while OPPO reclaimed fourth place with 9%, thanks to significant growth in India and Latin America. Vivo rounded out the top five with 9%, seeing a double-digit increase in shipments.

Canalys Analysis: Apple Nears Market Leadership Even as Competition Heats Up

"Apple achieved its highest third-quarter volume ever and has never been closer to leading the global smartphone market in Q3," noted Canalys Analyst Runar Bjørhovde. Strong demand for the iPhone 15 series, alongside continued sales of older models, played a crucial role in Apple’s impressive performance. The shift toward premium devices, combined with a refresh cycle for devices purchased during the pandemic, has been particularly beneficial for Apple, especially in key markets such as North America and Europe.

Bjørhovde also emphasized that Apple’s expanded product offerings have helped reduce delivery times. Despite a lukewarm initial reception for the iPhone 16, it is expected to drive Apple’s momentum through the end of 2024 and into 2025, particularly as Apple Intelligence expands into new markets and adds support for additional languages.

Le Xuan Chiew, another Analyst at Canalys, highlighted the increasing competition among the top five vendors. “The gap between them has narrowed, creating a more intense competitive landscape. Vendors are entering the holiday shopping season with solid momentum but cautious optimism, aiming to attract consumers who have delayed upgrading their devices in anticipation of deals during events like 11.11 and Black Friday. However, strategic resource planning is key, as demand remains fragile and vendors face challenges such as global supply chain issues and new regulatory hurdles like the EU’s eco-design directive.”

IDC Analysis: Strong iPhone Sales Drive Growth Amid AI-Driven Market Shift

Supporting Canalys' findings, preliminary data from International Data Corporation (IDC) also reported a 3.5% year-over-year increase in Apple’s iPhone shipments in Q3, reaching 56 million units. Apple’s market share remained stable at 17.7%. IDC credited the strong sales of older iPhone models, particularly the iPhone 15, to aggressive promotions and the successful marketing of Apple Intelligence.

IDC also forecasts continued growth for Apple in the upcoming holiday season, as consumers look to upgrade to AI-powered devices. Francisco Jeronimo, Vice President of IDC’s Data and Analytics division, noted that Samsung remains the largest global smartphone vendor, despite a 2.8% decline in shipments to 57.8 million units. Samsung’s focus on AI-driven high-end models has allowed it to raise the average selling price of its smartphones, helping to maintain its strong position in the premium segment.

In addition, Chinese brands such as Xiaomi, Vivo, OPPO, Lenovo, and Huawei saw significant growth in Q3. Xiaomi, in particular, increased its shipments by 3.3% to 42.8 million units, securing its place as the third-largest smartphone vendor globally.

Conclusion: Apple and Samsung remain the top, Chinese brands significant growth

As the global smartphone market continues its steady growth, Apple and Samsung remain neck and neck in competition for the top spot. Apple’s success in Q3 was driven by strong demand for both new and legacy iPhone models, supported by effective marketing of AI features. With the holiday season approaching, both Canalys and IDC analysts predict further growth for Apple, although the competitive landscape remains tight. Managing supply chains, inventory, and marketing efforts will be critical for vendors aiming to maintain or increase their market share in this evolving market.