It’s a changeable time in the smartphone industry. Late last year, Apple overtook Samsung as the world’s biggest smartphone supplier. But in the first quarter of this year, that was reversed, with Samsung back in the top spot. New launches from Huawei are having a big impact on the market, primarily taking Chinese custom away from Apple, which has seen huge sales falls so far this year. Meanwhile, Samsung just launched a new AI phone that is drawing lots of attention, while Apple’s latest model won’t be out until September.

With a 50 MP lens, this phone has very superior camera functions, and with a few clicks, you can delete passersby from the photo. Another brand has launched the first AI phone, offering real-time translation on phone calls, as well as summaries of articles. Many brands launched new flagship phones in the first quarter of 2024, with cutting-edge functions aimed at reinvigorating the flagging phone market.

Kao Hung-hsiang
IDC research manager
Shipment of AI phones could exceed AI PCs this year. Looking at the apps that exist now, there aren’t any really market-beating applications, so I wonder if they will be able to stimulate much demand for phone upgrades.

Analysts are not convinced the new AI functions will convince users to trade in their phones for new models. Research from market analytics firm IDC showed that 289 million new smartphones were shipped in the first quarter of 2024, a growth of 7.8% from the same period last year.

Samsung has come back to the top spot, holding 20.8% of the market. The new flagship and flip phones from Huawei last year were a blow for Apple, which now occupies just 17.3% of the market. In at No. 3 is Xiaomi with 14.1%.

Kao Hung-hsiang
IDC research manager
Huawei will probably have a very noticeable comeback this year. So other manufacturers will probably see very weak growth or even stay level. In order of the magnitude of impact, it should be Apple, Oppo, Vivo, Xiaomi and Honor.

Experts say that Samsung’s new S24 series launched earlier this year shipped over 60 million units in Q1, representing contraction of 0.7% compared to that period last year. Apple shipped 50.1 million units, shrinking 10% year-on-year. But the Chinese firm Xiaomi grew 33% in the same period. It’s a turbulent time for the phone industry, and analysts are watching to see if changes are afoot in the supply chain.

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