Apple loses top spot in IDC list of biggest phone makers, still ahead of others in revenue

Apple loses top spot in IDC list of biggest phone makers, still ahead of others in revenue

Apple is no longer the world’s leading phone maker, at least for now. The company has experienced a decline in shipments in the last few months, resulting in a drop in spot, and its rival Samsung taking over the first spot. According to preliminary data from the International Data Corporation (IDC), a firm which tracks data from smartphone manufacturers quarterly, despite a 7.8 per cent increase in global smartphone shipments in the first quarter of 2024, Apple experienced a 10 per cent decline compared to the same period last year.

This decline reportedly comes after Apple’s strong performance in the previous quarter when it surpassed Samsung as the world’s leading phone maker. The report suggests that the drop in shipments from the iPhone maker is attributed to several factors. Firstly, competition from Android smartphone makers, particularly Chinese brands like Xiaomi, who have a 14.1 percent market share, intensified in the race for the top spot.

Secondly, Apple is facing challenges in China, the world’s biggest smartphone market. In China, the resurgence of Huawei, increased competition from domestic brands, and a potential government ban on foreign devices all contributed to a decline in Apple’s sales in the country.

“While Apple managed to capture the top spot at the end of 2023, Samsung successfully reasserted itself as the leading smartphone provider in the first quarter,” says Ryan Reith, group vice president with IDC’s Worldwide Mobility and Consumer Device Trackers.

Reportedly, Samsung managed to capitalise on the changing dynamics in the smartphone market. The company  launched its latest flagship Galaxy S24 series at the beginning of the year, achieving an 8 percent sales jump compared to the previous S23 series. This strong performance, coupled with Apple’s struggles, propelled Samsung back to the top spot with a 20.8 percent market share.

Further, according to IDC, while Apple and Samsung will continue to maintain their hold on the high end of the market, the resurgence of Huawei in China, as well as notable gains from Xiaomi, Transsion, OPPO/OnePlus, and vivo, will likely have both OEMs looking for areas to expand and diversify. “As the recovery progresses, we’re likely to see the top companies gain share as the smaller brands struggle for positioning,” Reith said.

However, with a drop in shipments, it’s important to note that Apple is likely to maintain a global lead in terms of revenue. According to an earlier report by market tracker Counterpoint Research, Apple became the largest smartphone brand by revenue in India in 2023 for the first time ever, surpassing Korea’s Samsung in a market valued at around USD 40 billion. The iPhone maker’s revenue share stood at 23 percent last year, despite capturing just around 6.5 per cent market share by volume – its highest ever – as compared to Samsung, which had 18 percent volume share and 21 percent revenue share, followed by Vivo with 13 percent revenue share.

Meanwhile, as Apple faces challenges in some markets, all eyes are now on the upcoming developer conference, WWDC 2024, scheduled for June, and subsequently, the new iPhone 16 series. While Apple has kept all details under wraps, the company is expected to introduce significant software updates with an emphasis on AI in iOS 18. Apple has lagged somewhat behind in the AI race. However, at WWDC 2024, the Cupertino-based tech giant is expected to finally unveil its AI developments, which are anticipated to significantly impact consumer interest in the new iPhones.