The smartphone market is experiencing a major shift in power, as Apple has surpassed Samsung to become the top smartphone maker in 2023, according to a report from IDC. This marks the first time since 2010 that a company other than Samsung has held the top spot in the smartphone market.
The rise of Apple to the number one position is a result of its all-time high market share and its ability to capture a larger portion of the market. Despite facing regulatory challenges and increased competition from Huawei in China, Apple has been able to maintain its success and resilience. The company’s increasing trend of premium devices, which now make up over 20% of the market, has played a significant role in its ongoing success. This is driven by aggressive trade-in offers and interest-free financing plans.
The overall global smartphone market remains challenging, with global shipments declining by 3.2% year over year to 1.17 billion units in 2023. This represents the lowest full-year volume in a decade, largely due to macroeconomic challenges and elevated inventory early in the year. However, there is optimism for a recovery in 2024, as growth in the second half of 2023 has helped to solidify this expectation.
The fourth quarter of 2023 saw a year-over-year growth of 8.5% and 326.1 million shipments, surpassing the forecasted growth of 7.3%. While low-end Android players like Transsion and Xiaomi experienced strong growth in the second half of the year, the clear winner in the market is Apple. Not only is Apple the only company in the top three to show positive growth annually, but it has also secured the number one spot for the first time ever.
Apple’s success has contributed to Samsung’s drop in rank, but the overall Android space is diversifying, with Huawei making a comeback and other brands like OnePlus, Honor, and Google launching competitive devices in the lower price range of the high end. Additionally, there is growing interest in foldable smartphones and discussions around AI capabilities, which are gaining traction in the market.
The competition within the smartphone market is intense, and this shift in rankings at the top further exemplifies this. The smartphone space is heading towards an interesting time with various players vying for market dominance.
Overall, Apple’s achievement as the top smartphone maker in 2023 highlights the company’s continued success and market power. While Samsung has held the top position for the past decade, Apple’s ability to capture an increasing market share and the growing demand for premium devices has propelled it to the number one spot. With the overall smartphone market expected to recover in 2024, it will be intriguing to see how the competition unfolds and whether Apple can maintain its dominance.
