According to the latest Omdia smartphone preliminary shipment survey, 300.4 million units of smartphones were shipped in the first quarter of the year. This marks an 11.6% increase from the previous quarter and represents the second consecutive quarter of year-on-year growth.
The uptick in smartphone shipments indicates the potential for the market to stabilize following a period of turbulence, characterized by fluctuations in demand and disruptions in the supply chain.
According to Omdia, in Q1 24, Samsung secured the highest number of shipments among all Original Equipment Manufacturers (OEMs), with a total of 60.4 million units. While there has been a significant 13.5% growth compared to the previous quarter, with the release of the S24 series, YoY growth was only 0.2%, suggesting intense competition in the industry, especially from Chinese companies.
The launch of the iPhone 15 series resulted in a surge in Apple shipments in the last quarter of 2023. However, the first quarter of 2024 saw a decline in Apple shipments with a total of 50.7 million units shipped, which can be attributed to delayed production and shipments.
Jusy Hong, Senior Research Manager at Omdia’s Smartphone group, noted that Apple’s second-largest shipment volume comes from China. Thus, the intense competition with Huawei, especially in the premium segment, may have contributed to Apple’s shipment decline.
“Performance in the Chinese market will be an important factor in determining Apple’s overall shipments this year,” added Hong.
Chinese manufactures, Xiaomi and Honor, displayed a combination of positive and negative outcomes. Xiaomi recorded a slight decrease in shipments compared to the previous quarter, but still achieved significant YoY growth. Meanwhile, Honor recorded a 47.3% YoY growth in shipments, maintaining its upward trajectory.
Transsion’s shipments slightly decreased to 27.5 million units, but still achieved triple-digit growth compared to the previous year. Meanwhile, Oppo recorded a 2.5% increase in shipments compared to the previous quarter. Moreover, the company experienced a 5.7% YoY decrease, which may be attributed to growing competition with Transsion and a decline in market size.
“Increased shipments in low-end and mid-range smartphones contributed to Transsion’s growth in 2023, however, this demand is being cautiously monitored due to its volatility which is contingent upon economic conditions. Sustaining an economic recovery of the low-end segment hinges on economic rebound,” said Zaker Li, Principal Analyst, Omdia.
Huawei ranked eighth in Omdia's study thanks to the continued success it had with the introduction of the Mate 60 Pro in the latter part of 2023. Huawei experienced consistent growth in 2023, which continued into the first quarter of 2024 with 13.1 million total shipments, indicating a two-fold increase in shipments compared to the previous year.
“As we move through 2024, the global market is expected to grow year-on-year, particularly in the first half. However, these dynamics will persist in determining which OEMs will benefit the most from this growth,” concluded Hong.
