The Zhitong Finance App learned that data released by Canalys shows that in the first quarter of 2024, the global smartphone market grew 10% year-on-year to 296.2 million units, and the market performance was higher than expected. This marks the first time after ten quarters of double-digit growth. This growth is due to the introduction of new product portfolios by manufacturers and macroeconomic stabilization in emerging markets.

Driven by the A series and early high-end product updates, Samsung regained its leading position and shipped 60 million units. In the face of challenges in its core market, Apple experienced a double-digit decline in shipments, falling to 48.7 million units, ranking second. Voice and OPPO ranked in the top five, with shipments of 28.6 million units and 25 million units respectively, with market shares of 10% and 8% respectively.

Sanyam Chaurasia, senior analyst at Canalys, commented: “The launch of the Samsung S24 marks a critical moment for its AI and high-end strategy, which has the potential to reshape the industry landscape. Compared with the S23 released last year, Samsung released the Galaxy S24 a month earlier, and shipments reached 13.5 million units in the first quarter, an increase of 35% over the previous generation. The strong performance of the Galaxy S24 was driven by Galaxy AI, enhanced customer experience in large-scale retail stores, and optimized time-to-market strategies. This not only strengthens Samsung's position in the high-end market, but also heralds the smartphone industry's transformation to AI-driven innovation. Samsung will use Galaxy AI to provide users with reasonable pricing strategies, strengthen high-end competitiveness, and cultivate brand loyalty, so as to take full advantage of its early development momentum.”

Runar Bjørhovde, an analyst at Canalys, said: “Mass market brands are riding the wave of rebound in emerging markets while carefully stocking up on spare parts. As inventory conditions improved, these brands achieved strong performance by updating their product portfolios. Driven by strong shipments of new models in the Middle East, Africa and Latin America, Voice achieved strong growth of 86%. It is worth noting that in addition to the steady development trend in emerging markets, manufacturers are also stepping up production and storage of raw materials to cope with the further rise in bill of materials (BoM) costs. Manufacturers will pay close attention to market demand and seek to pass on rising costs to consumers, leading to an increase in average selling price (ASP).”

Chaurasia continued: “In 2024, manufacturers will remain cautious, focusing on profitability, inventory management, and supply chain optimization. Meanwhile, exploring commercializing the generative AI wave remains critical for all participants in the ecosystem. The development of end-side AI mobile phone solutions largely depends on strategic alliances between brands, chip vendors, and software companies. Vendors will seek open collaboration with industry leaders to bring unique and personalized AI solutions to end users. In the long run, manufacturers will seek to introduce these AI features to the mid-tier market and add more users to their native AI ecosystem. Furthermore, integrating across devices and expanding the ecosystem with partners can increase revenue potential and highlight the profound impact of end-side AI on user experience and brand value.”