In a significant market development, Samsung has dethroned Apple to claim the title of the world's largest phone maker. This change in leadership comes as iPhone shipments have witnessed a sharp drop of almost 10% in the initial quarter of the year, prompting Samsung to take the lead in global smartphone shipments. The latest data from the International Data Corporation (IDC) indicates that Samsung managed to deliver over 60 million devices, securing a 20.8% share of the global smartphone market, while Apple trailed behind with 50.1 million units and a market share of 17.3% out of the 289.4 million total global smartphone shipments.
The shift in market dynamics can be attributed to a variety of factors, including Beijing's tightened restrictions on Apple products for government officials amidst an ongoing trade dispute with Washington. Additionally, Apple is facing stiff competition not only from Samsung but also from other Chinese players like Huawei, Xiaomi, and Transsion, which have been steadily gaining market share. This increased competition has contributed to Apple's decline in dominance, leading to Samsung reclaiming the top spot in the smartphone market. Alongside these shifts in market leadership, Samsung is anticipating a significant increase in profits for the first quarter of the year, primarily fueled by strong smartphone sales.
As the global smartphone market continues to evolve, consumers are increasingly opting for higher-priced devices, leading to a reshuffling among the top players in the industry. Analysts, like Nabila Popal from IDC, have observed a change in power dynamics among the leading smartphone companies, hinting at potential adjustments in strategies as the world moves towards a post-recovery phase. Meanwhile, separate analysis from Counterpoint Research has highlighted a notable decrease in Apple's sales in China, as the company faces intense competition from local smartphone manufacturers. This competitive pressure has also impacted Apple's market position, with the company's shares witnessing a 7% decline since the beginning of the year, amid concerns about its technological innovation and market standing.