• Global smartphone sell-through grew YoY for the third consecutive quarter in Q2 2024, continuing its recovery from the weakest year in a decade.
• Smartphone sell-through grew 6% YoY in Q2 2024, the highest YoY growth since Q2 2021. Almost all regions showed YoY growth.
• The top five brands remained the same as in earlier quarters. Samsung retained the #1 spot, Apple declined marginally YoY and Xiaomi grew the fastest among the top-five OEMs. vivo took the top spot in the world’s two biggest smartphone markets – China and India. OPPO narrowly followed vivo, rounding out the top five.
• The cumulative share of the top five brands came down slightly as they faced pressures from the next five, mainly Huawei, HONOR, Motorola and TECNO. Motorola, which has been expanding presence, achieved its highest-ever volume share in a decade.

Seoul, Beijing, Buenos Aires, Hong Kong, London, New Delhi, San Diego, Taipei, Tokyo – July 15, 2024

Global smartphone sell-through volumes grew 6% YoY in Q2 2024 to record the highest YoY growth in last three years, according to preliminary numbers from Counterpoint Research’s Smartphone 360 Monthly Tracker. Also, this was the third consecutive quarter of market growth, driven by improving consumer sentiment and macroeconomic factors.

The Europe and Latin America (LATAM) markets grew the fastest in Q2 2024, both recording high double-digit YoY growth numbers, as consumer sentiment and purchasing activity continued to improve compared to 2023 levels. In China, Huawei’s comeback and an early start to the 618 shopping festival ensured the continuation of gradual recovery. Emerging markets, especially in LATAM and Asia, performed better than mature markets.

Source: Counterpoint Research Market Pulse Early Look, June 2024

Commenting on the global smartphone market’s dynamics, Research Director Tarun Pathak said, “The growth in smartphone sales over the last three quarters is good news for the industry. The sales were at the lowest point in a decade in 2023 but the market was quick to rebound thanks to improving consumer sentiments and inventory positions. Almost all markets exhibited signs of growth and we remain optimistic for upcoming quarters. Brands were quick to react to the growing consumer demand and refreshed their portfolios to entice customers further. We are seeing increased proliferation of several features such as CMF (Color-Material-Finish), high-megapixel cameras and 5G into lower price bands, which is further expected to fuel demand. We remain optimistic on future quarters and expect the market to show 4% growth in 2024.”

The top five brands remained the same as in earlier quarters. Samsung retained the top spot in Q2 2024, helped by strong sustained sales of the AI-focused Galaxy S24 series and an early refresh of the popular Galaxy A series, whose models emerged as the bestsellers in entry-level to mid-price bands. Samsung also led the sales of GenAI-capable Android smartphones and is expected to further capitalise on it with its new-generation foldables.

Apple’s global sales remained flat but recorded strong YoY growth in Europe and Latin America, which compensated the low upgrade rates in the US and share loss in China following Huawei’s rise. However, Apple saw improvement in sales in China during the 618 shopping festival where it offered attractive discounts. In H2, the new iPhones with Apple Intelligence are expected to drive upgrade demand.

Xiaomi was the fastest growing top-five brand in Q2, growing 22%. The popularity of the Redmi 13 and Note 13 series coupled with a leaner product portfolio and a stronger premium push helped Xiaomi gain a net ~2% share YoY in Q2. vivo also outperformed the market and took the top spot in the world’s two biggest smartphone markets – China and India – in Q2. OPPO, coming close behind vivo, rounded off the top five. OPPO is focusing on increasing profitability, including by launching more devices in the mid-to-higher-price bands to align its strategy with premiumisation.  This choice may result in challenges in market shares in the short term but can lead to better profitability for the brand.

The cumulative share of the top five brands came down YoY in Q2 due to pressure from surging brands like Huawei, HONOR, Motorola and Transsion group brands. On the other hand, the share of top 10 brands touched nearly ~90%, pointing towards market consolidation and intensive competition among the top 10. While Huawei has made significant gains in China, HONOR and TECNO have been expanding to more regions. Motorola has gained quickly across regions to move up two ranks from last year and reach its highest ever quarterly global smartphone market share in a decade.

Commenting on the new normal in the global smartphone market, Senior Analyst Ankit Malhotra said, “The global smartphone market has entered a new era – one of slow and steady volume growth driven largely by replacement cycles and is now a zero-sum game between OEMs. We expect smartphone volumes to grow slowly in coming years, However, we expect revenues to grow faster than sales driven by the premiumization across regions, especially with the rise of newer form factors and capabilities, like foldables and GenAI.”

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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