What Display Daily thinks: The recent data on the global smartphone market shows a surge in demand that supply chains need to keep up with. Good news for utilization rates and maybe pricing pressure?
And while the top ten brands account for 90% of the market, and major brands like Samsung, Apple, and Xiaomi lead the market, it’s the emerging players like Huawei and Motorola, gaining ground, that are going to dictate how agile supply chains must be and how scalable to handle what is, in effect, a very dynamic market. Apple’s big and dominant, but not dominating the conversation. That’s opened up a of space for other brands, and the real opportunities are in markets where there’s a clear need for a flexible, resilient, and tech-savvy supply chain to maintain competitiveness.
So, while the big brands are also focussing on premium products, where volumes will be low, emerging players are coming in with aggressive pricing, pretty good smartphones, and rapidly adapting to local markets in Latin America, Asia, Africa and the Middle East.
At some point, we may have to consider that the smartphone market will gravitate to utility more than accessory which means a phone is a phone, and that is it. Maybe premium brands continue to enjoy the riches of being a cut above the masses, but there’s probably a ceiling to functional premium features, and gold-plating your phone may not seem like a great idea when you lose it your local bar.
Building future display capacity for smartphones is going to be a puzzling endeavor. Betting on how the existing trends play out means that you cannot rely on the golden rules of the last ten years. Whether it is the domestic market or not spurring demand, the Chinese smartphone brands are in the ascendance. Chinese display makers are ready for the bounty of opportunities, suppliers outside of China have a challenge, they can’t just hitch their wagon to Apple.
Global Smartphone Market Shows Strong Growth in Q2 2024
Sell-through rates refer to the percentage of inventory sold to customers, reflecting the actual sales performance of products rather than just shipments to retailers. This metric is crucial for understanding the real demand for products in the market.
Counterpoint’s research is showing a significant 6% year-over-year growth in global smartphone sell-through in Q2 2024, marking the highest growth rate in the past three years. This increase indicates a recovery trend following a challenging year in 2023. Europe and Latin America were the fastest-growing markets, driven by improved consumer sentiment and increased purchasing activity. The Chinese market also showed recovery, driven by Huawei’s strong showing and an early start to the 618 shopping festival.
Samsung maintained its position as the top smartphone brand, thanks to the strong performance of its Galaxy S24 series and the early release of the popular Galaxy A series. Apple’s sales remained flat overall but saw strong growth in Europe and Latin America, offsetting lower upgrade rates in the US and market share losses in China. Xiaomi emerged as the fastest-growing brand among the top five, with a 22% increase in sales, driven by the success of its Redmi 13 and Note 13 series. Vivo and OPPO also performed well, with Vivo leading sales in China and India. The top 10 brands now hold nearly 90% of the market share, indicating ongoing market consolidation. Motorola, in particular, achieved its highest market share in a decade.
