In a landmark triumph, Apple has secured the top spot in global smartphone shipments for the first time, outpacing its long-standing rival Samsung, according to IDC’s Worldwide Quarterly Mobile Phone Tracker.
While acknowledging the preliminary nature of the data, a parallel report from Canalys reaffirms Apple’s dominance in smartphone shipments for the entirety of 2023. IDC’s figures indicate that Apple shipped a total of 234.6 million mobile devices, surpassing Samsung’s 226.6 million units. Xiaomi, Oppo, and Transsion complete the top five, shipping 145.9 million, 103.1 million, and 94.9 million smartphones, respectively.
This significant accomplishment marks a notable shift in the dynamics of the smartphone industry. IDC points out that Samsung last relinquished the top spot 13 years ago in 2010, with Nokia leading the market at the time. LG Electronics, ZTE, and Research in Motion (manufacturers of BlackBerry devices) rounded out the top five, with Apple conspicuously absent. This historical context underscores the industry’s rapid transformation over the past decade.
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Nabila Popal, Research Director at IDC’s Worldwide Tracker team, commented on Apple’s exceptional position, stating, “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.” Popal attributes Apple’s ongoing success to the surging demand for premium devices, constituting over 20% of the market. Aggressive trade-in offers and interest-free financing plans have significantly fueled the appetite for these high-end devices.
However, Apple’s ascent to the top was not without formidable competition, primarily from other Android manufacturers such as Huawei, OnePlus, Honor, and Google. Huawei, in particular, poses a potential threat to Apple’s continued growth, especially in the crucial Chinese market. Despite facing US sanctions, Huawei exhibited resilience by incorporating an advanced 7nm processor capable of 5G speeds into its Mate 60 Pro smartphone.
Canalys highlighted the challenges Apple might face in the Chinese market due to Huawei’s “improving strength.” The report suggests that Huawei’s advancements, including overcoming US sanctions and integrating cutting-edge technology into its smartphones, could pose a hurdle to Apple’s expansion in China. The Chinese market, known for its scale and influence, remains a critical battleground for smartphone manufacturers.
While Apple’s global achievement is commendable, the broader smartphone market experienced a 3.2 percent decline in shipments in 2023 compared to 2022.
However, signs of recovery are evident. IDC reports an 8.5 percent year-on-year growth in shipments during the fourth quarter, and Canalys indicates an 8 percent growth after seven consecutive quarters of decline. These positive trends suggest a potential rebound in the smartphone industry, driven by technological advancements, shifting consumer preferences, and recovering global economies.
As Apple basks in the glory of this feat, the company remains cognizant of the challenges ahead, particularly in the competitive Chinese market. The smartphone industry is poised for further transformations and innovations, and Apple’s ability to scale through the challenges will significantly determine whether it will retain the top spot.
