(Jeenah Moon/Bloomberg via Getty Images)
For 13 years, Samsung has reigned as the world's biggest smartphone vendor by shipments. But now Apple has finally overtaken the Korean company to become the top smartphone maker, according to research firms IDC and Canalys.
Apple did so in Q4 2023 thanks to the iPhone 15, which debuted ahead of the busy holiday season. The company shipped 72.1 million iPhone units during the quarter, reaching a market share of 24.7%, according to IDC. Samsung’s shipments only reached 59.5 million units for a 16.3% market share.
Although Apple has long been a popular smartphone maker, the company has never topped the global smartphone rankings, IDC says. The reason has had to do with product focus. Apple has largely sold iPhones at premium prices while Samsung has been offering phones at the high and low ends, enabling it to grab more market share.
(Credit: IDC)But now more consumers are joining the iPhone crowd while overcoming the cost hurdles. “Apple's ongoing success and resilience is in large part due to the increasing trend of premium devices, which now represent over 20% of the market, fueled by aggressive trade-in offers and interest-free financing plans,” says IDC research director Nabila Popal.
Research firm Canalys also noted that Apple has been broadening its smartphone lineup. The more expensive Pro series starts at $999, while the standard iPhone models begin at $799. “The expanded positioning of its iPhone 15 series has pointed to the future direction of Apple’s portfolio strategy to reach a broader range of consumer segments,” says Canalys research manager Amber Liu.
As for why Samsung failed to keep up, Liu said: “In 2023, Samsung focused on the mid-to-high-end segment for profitability but lost share in the low-end segment and also its leading position in the global market.”
Apple’s number one ranking may be short lived, though. Samsung is slated to launch its Galaxy S24 phones tomorrow, which could drive shipments for the company during Q1, helping it snatch back the top spot. Still, IDC says “a sort of shifting of power” is occurring at the top of the smartphone market. This means we can expect Apple and Samsung to be locked in a tug-of-war for the leading position in the quarters to come.
(Credit: Canalys)Overall, smartphone demand continues to sag. During all of 2023, shipments reached only 1.17 billion units for what IDC says is the “lowest full-year volume in a decade.” But in some good news, shipments were up in Q4 by about 8%, which signals the market may be on the way for a recovery this year.
"With inventory pressure and global inflation continuing to ease, vendors can finally focus on product innovation and long-term strategy developments, laying down solid foundations for the year ahead,” said Canalys senior analyst Toby Zhu.