Samsung just lost in a big way for the first time in 13 years — and it got beat by Apple
Samsung, the longtime leader in global smartphone shipment sales, has finally been dethroned by its arch-rival Apple. According to market research firm IDC, Apple surpassed Samsung to claim a 20.1% share of the global market, while Samsung fell slightly behind with a 19.4% share. This is the first time Samsung has not held the top spot since 2010 when it overtook Nokia. Apple’s remarkable achievement can be attributed to the success of its iPhone 15 family, which propelled the company to the number one position.
One of Apple’s strengths lies in its ability to capture and retain younger users within its ecosystem. A report from the Financial Times revealed that 34% of iPhone owners in the United States were born after 1996, compared to only 10% of Gen Z owning Samsung phones. This demographic advantage has played a significant role in Apple’s rise to the top.
Furthermore, as consumers tend to hold onto their phones for longer periods, they are increasingly willing to invest more in premium devices. Apple’s brand reputation and focus on premium products have allowed it to shine in this segment. In fact, premium devices now account for over 20% of the market.
While we saw some strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023, stemming from rapid growth in emerging markets, the biggest winner is clearly Apple, said Nabila Popal, research director with IDC’s Worldwide Tracker team. Not only is Apple the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever.
The IDC report also highlighted the overall decline in the smartphone market, with a 3.2% decrease in sales. However, one notable exception to this downward trend was the Chinese company Transsion, which experienced significant year-on-year growth.
Although Samsung faces increased regulatory challenges and renewed competition from Huawei in China, its largest market, there is hope for a potential market recovery in 2024. The growth seen in the second half of 2023 suggests a possible turnaround. The question now is whether Samsung will be able to rally and reclaim its position at the top.
In this ever-evolving smartphone industry, the battle for dominance continues to unfold. As Apple revels in its victory, Samsung will undoubtedly strategize and plan its comeback. Only time will tell how these giants of the tech world navigate the changing landscape and win over consumers in the years to come.
Note: The data used in this article is based on the IDC Worldwide Quarterly Mobile Phone Tracker report from January 15, 2024.
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