Global smartphone recovery continued in Q2, says IDC

Preliminary figures from the research firm put shipments for the three months to 30 June at 285.4 million, up 6.5 percent on the same period last year.

Samsung sits on top with shipments totalling 53.9 million, up from 53.5 million, and good enough for an 18.9 percent share of the market. Apple sits in second followed by Xiaomi in third, with shipments of 45.2 million and 42.3 million respectively (see table).

Q2 marks the fourth consecutive quarter of growth in global smartphone shipments – the market finally turned a corner in Q3 last year, with volume increasing 7.3 percent year-on-year (YoY). That was followed in Q4 by a YoY increase of 8.5 percent. However, the strong end to 2023 was unable to offset a poor start, and for the full year, shipments fell 3.2 percent to 1.17 billion.

2024 has picked up where 2023 left off, with Q1 smartphone shipments totalling 289.4 million – up 7.8 percent on Q1 last year – and now similarly-strong growth has been achieved in Q2.

If 2024 carries on in the same vein, then the smartphone market is on course to achieve its first full year of growth since 2021.

However, IDC doesn't want anyone getting ahead of themselves.

"The growth in 2Q24 continued to provide some relief to the OEMs, though it's partly supported by a low comparison base and the overall recovery is still at a soft pace," said Will Wong, senior research manager for client devices at IDC Asia/Pacific.

"While recovery is well under way with the top five companies all making year-over-year gains, we are seeing increasing competition amongst the leaders and a polarisation of price bands," added Nabila Popal, research director with IDC's Worldwide Tracker team.

She explained that Apple and Samsung are battling it out at the premium end of the market, while major Chinese brands are increasing shipments at the low end in an effort to capture volume share amid weak demand.

"As a result, the share of mid-range devices is challenged," Popal said.

However, IDC stopped short of predicting this pressure could derail the overall market's momentum, and what's more, it struck an upbeat tone regarding upcoming smartphones equipped with generative AI (GenAI), and their potential to spark interest among consumers.

Such devices are expected to account for 19 percent of the market this year, said Popal, with shipments on course to reach 234 million.

"The second quarter is more like a prelude before more Gen AI smartphones are launched in the second half of the year, which will potentially be the next growth driver after 5G and foldables," noted Wong.

While the market isn't out of the woods yet, this latest snapshot from IDC marks a welcome shift in tone compared to the doom and gloom of recent years.