In a monumental shift, Apple has notched the top spot in the smartphone market for 2023, unseating Samsung for the first time since 2010. The weirder part? Apple stunted its market growth during that same year, making the loss even harder for the long-time Korean tech giant.
Economic Troubles, Unsold Inventory
According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, the global smartphone market encountered a 3.2% year-over-year decline, totaling 1.17 billion units in 2023.
This decline was mainly attributed to macroeconomic challenges and what basically amounted to unsold phones sitting in storage early in the year, marking the lowest full-year volume in a decade.
That being said, a promising recovery trajectory emerged in the year’s second half, culminating in an 8.5% year-over-year growth in the fourth quarter (4Q23), surpassing the forecast of 7.3%. At the top of it all? Apple eventually moved in to take 20.1% market share within that time frame.
Samsung Swept Under the Rug
On the other hand, Samsung took quite a hit, being the only one from the top 3 that had a negative growth value from 2022 to 2023. From a 21.7% market share, it dropped to 19.4%, a stunning 13.6% decline. This allowed Apple to barely swoop the ratings under its rug with a point of difference, even at just a “paltry” 3.7% growth rate.
4Q23 statistics were more or less the same, but the difference was slightly bigger (24.7% versus 16.3%), as the growth gap between the two within this category was larger.
The third contender, Xiaomi, also suffered a 4.7% decline. But it kept its third place at 12.5% market share. In addition, its 4Q23 results also showed that Xiaomi actually had increased sales figures, as opposed to Samsung, which still incurred a negative growth value.
The report concluded that a crucial factor contributing to Apple’s ongoing success is the growing trend of premium devices, which now constitute over 20% of the market. This shift is fueled by Apple’s strategic use of aggressive trade-in offers and interest-free financing plans.
Apple’s ascent to the number one spot for the entire year is a testament to its resilience, particularly in the face of increased regulatory challenges and resurging competition from Huawei in China, its largest market.
Everybody’s Just Catching Up
Of course, when the overall global market is considered, the ripple effects of this market transformation extend beyond Apple’s success. Other Android players like Huawei, Xiaomi, and Vivo are actively diversifying the Android space and the entire mobile industry.
Transsion, in particular, experienced tremendous growth from 2022 to 2023, at a whopping 30.8% growth (8.1% market share), jumping almost neck and neck with OPPO (8.8% market share).
Indeed, the report strongly highlights how intense the competition has become over the last few years. Foldable phones and discussions around AI capabilities are gaining traction, adding more avenues of innovation to the smartphone industry.
As Apple was bound to stunt its growth one way or another, so was Samsung, who would eventually lose market share at some point in the face of a dynamic and ever-evolving smartphone market.
