The global smartphone market grew in Q2

Almost all the regions registered growth, which Counterpoint attributes to improving consumer sentiment and macroeconomic conditions, and this means it is the third consecutive quarter of growth globally.

“Smartphone shipments registered strong growth as key regions continued on a recovery path,” said Senior Analyst Prachir Singh. “Caribbean and Latin America (CALA) emerged as the fastest growing region as Chinese OEMs continued their aggressive push helped by increased demand in smaller markets in the region. Europe and Asia Pacific also registered double-digit growth. The China market grew thanks to a strong performance in the 618 sales, which included significant price discounts including Apple iPhone.

“And consumer sentiment improved in many European markets, reflected in the growth of smartphone shipments in the region, especially in Western Europe (WE), which grew faster than Central and Eastern Europe (CEE). Middle East and Africa (MEA) also registered single-digit growth due to a more favourable economic environment as well as increasing push from Chinese OEMs. However, India witnessed a marginal decline due to a seasonal slump aggravated by a severe heatwave.”

Global smartphone revenues also grew by 8% YoY, with Apple in front in that regard with a 42% share. Samsung’s revenues grew 5% YoY, which Counterpoint says is due to growth in its ASP as well as shipments. Samsung in fact led global smartphone shipments during the quarter, driven by the strong performance of Galaxy A-series and the Galaxy S24 series. 

Revenues for the market beyond the top five OEMs also grew, apparently driven by increasing revenue from Huawei, Honor, Motorola and Transsion brands. While among the top five brands, Xiaomi was the fastest growing brand followed by Vivo.

Research Director Jeff Fieldhack added: “There were worries that iPhone volumes would disappoint after North American carriers reported record low upgrade rates and lower iPhone sales. We estimate Apple iPhone volumes were flat and revenue declined by 1% YoY despite Pro series sales growth. Apple’s China sales was down 6.5%, but it could have been a lot worse. Apple’s China sales improved due to attractive discounts offered during the 618 shopping festival. The outlook for Apple looks solid as there is more supply chain excitement for the upcoming iPhone 16 family and big expectations for Apple Intelligence.”

Looking forward, Canalys says that it sees a gradual recovery for the global smartphone shipments, and that ‘ongoing premiumization’ coupled with AI is likely going to push up the ASPs and revenues in the coming quarters. It also estimates that ‘GenAI’s share of overall smartphone shipments will reach 18% by 2024.’