What Display Daily thinks: First, Samsung and Apple are two sides of the same coin, with Samsung having been alone as a competitor against Apple in the smartphone market.
But, Xiaomi. Along with vivo and Transsion, these companies haven’t even started to get out of their comfort zone having largely grown and succeeded in the familiar territories of the Chinese market. Now, they are going to be expanding internationally, and the world is going to embrace them very quickly because they are going to be accessible and affordable.
From a display industry perspective, I wouldn’t doubt for one second that smartphone panel shipments in China and by Chinese manufacturers, are not going to see surges in demand over the course of the next 18 months. Factor in the likelihood that China’s interest rates are gonig to drop and the opportunities to invest and focus on market share gains are going to become even easier for Chinese companies and you have a nice setup for someone like Xiaomi.
Samsung and Apple can afford to stay above the fray, but they’re going to have to compete below premium levels at some point, and some point soon.
Lastly, the data, in pure historical terms, suggests that 2024 is a stabilizing year and the headlines of year-on-year growth should be put in the context of how much of a watershed moment 2023 really was. The market is flipping and it is favoring the usurpers. The usurpers are favoring consumers with good enough but at the right price. Will AI change that fact? Not unless Samsung and Apple know something that the whole AI software industry doesn’t know.
Strong Global Smartphone Market Vibes
The global smartphone market is experiencing a positive trend, achieving its third consecutive quarter of year-on-year growth. In Q2 2024, there was a 12% increase in smartphone shipments, reaching 288 million units. Optimism is building in the market, fueled by innovative technologies like GenAI and recovering demand from the mass market.
Xiaomi is growing the fastest with a 27% annual growth rate and ranking third with a 15% market share. Samsung and Apple are also doing well. Samsung maintained its position as the global market leader with an 18% market share, focusing on the high-end market as a strategic priority. Samsung recently launched the Galaxy Z Fold6 and Flip6 series, incorporating AI capabilities first introduced with the Galaxy S24, aiming to differentiated itself with new software and the foldable form factor. Apple ranked second with a 16% market share and Canalys’ analysts believe it generated excitement at WWDC with anticipated product refreshes, again, on AI. Despite there being no new Apple products announced recently.
Mainland China’s Smartphone Market
Canalys also has new information on the Chinese smartphone market which makes a nice juxtaposition here.
According to Canalys, Mainland China’s smartphone market grew by 10% year-on-year in Q2 2024, with over 70 million units shipped. Vivo led the market with 13.1 million units and a 19% share, followed by Oppo with 11.3 million units, Honor with 10.7 million units, and Huawei with 10.6 million units.
| Vendor | Q2 2024 shipments (million) | Q2 2024 market share | Q2 2023 shipments (million) | Q2 2023 market share | Annual growth |
|---|---|---|---|---|---|
| vivo | 13.1 | 19% | 11.4 | 18% | 15% |
| Oppo | 11.3 | 16% | 11.4 | 18% | -1% |
| Honor | 10.7 | 15% | 10.3 | 16% | 4% |
| Huawei | 10.6 | 15% | 7.5 | 12% | 41% |
| Xiaomi | 10.0 | 14% | 8.6 | 13% | 17% |
| Others | 14.8 | 21% | 15.1 | 24% | -2% |
| Total | 70.5 | 100% | 64.3 | 100% | 10% |
Xiaomi re-entered the top five, shipping 10 million units, driven by the buzz around its SU7 electric car. Apple ranked sixth with a 14% market share, a 2% drop from the previous year.
