In a significant shift, Apple has emerged victorious over Samsung Electronics, ending the latter’s 12-year reign as the largest seller of smartphones globally. According to data from the International Data Corp. (IDC), Apple secured a commanding 20% share of the market in 2023, outpacing Samsung, which concluded the year with a 19.4% share.
The change in the ranking reflects a challenging year for the smartphone industry, characterized by consumer reluctance to upgrade devices and a preference for more affordable handsets amid high inflation and economic uncertainties. Additionally, a slower-than-expected recovery in China, the world’s largest smartphone market, contributed to an overall decline in phone sales.
Apple and Transsion, the company behind popular brands Tecno, Infinix, and itel, stood out as the only two among the top five smartphone vendors to experience sales growth in 2023. This is noteworthy given that the overall smartphone market contracted by 3.2%, reaching a decade-low of 1.17 billion units.
Nabila Popal, Research Director at IDC’s Worldwide Tracker team, highlighted the impressive performance of Apple, stating, “While we saw some strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023, stemming from rapid growth in emerging markets, the biggest winner is clearly Apple.”
IDC’s data reveals a 13.6% decline in phone shipments from Samsung, contrasting with a 3.7% increase in iPhone shipments by Apple. Samsung’s strategic focus on the mid- to high-end segment for profitability resulted in a loss of share in the low-end segment, according to Amber Liu of research firm Canalys.
However, Apple is not without its challenges, particularly in the Chinese market, where it faces pressure from a resurgent Huawei and competition from budget Chinese brands. In response, Apple has initiated discount strategies, offering reductions of up to 5% on some models in China to attract customers.
Despite Apple’s success, Microsoft made headlines by surpassing Apple as the world’s most valuable public company on Friday. Growing concerns on Wall Street regarding the demand for iPhones and other high-end gadgets contributed to Microsoft’s ascendancy in market valuation.
The dynamics of the smartphone industry are undergoing significant shifts, and Apple’s triumph over Samsung underscores the intense competition and evolving consumer preferences shaping the market. As 2023 unfolds, industry players will undoubtedly navigate challenges and opportunities in an ever-changing landscape.
