Apple overtakes Samsung as world's biggest phonemaker

In a significant shift, Apple has seized the majority share of the global smartphone market, ending Samsung's 12-year reign at the top. According to data from the International Data Corporation (IDC), the American tech giant commanded over 20% of the phones shipped worldwide last year.

Apple's ascent to the summit comes as smartphone sales faced a downturn, witnessing a dip of over 3% from the previous year, totaling nearly 1.2 billion units. This marks the lowest sales figure in a decade, attributed to economic challenges and elevated interest rates during the pandemic, prompting consumers to be more frugal. Despite this, industry experts anticipate a market rebound in the upcoming year.

Apple's Triumph

Apple's stellar performance, with over 234 million phones sold in 2023, positions it as the "biggest winner," as stated by the IDC's Nabila Popal. Notably, Apple is the sole player in the top three to exhibit positive annual growth and secures the number one spot for the first time. This accomplishment is noteworthy, given the intensified regulatory challenges and resurging competition from Huawei in China, Apple's largest market.

Despite Huawei's advancements in developing its chips after facing restrictions on purchasing US technology-made chips due to national security concerns, Apple's strategic initiatives such as trade-in programs and interest-free financing plans have fueled demand for premium devices.

Samsung's Setback

The displacement of Samsung, a longtime leader in memory chips, smartphones, and televisions, marks a setback for the South Korean electronics giant. Recent warnings of weaker-than-expected profits highlight the challenging landscape of global consumer electronics demand.

Samsung faces competition not only from Apple but also from more affordable Android models like Transsion and Xiaomi, capitalizing on price-conscious consumers and emerging markets. The IDC notes that the smartphone market is entering a "very interesting time," with a proliferation of Android providers diversifying the market and consumers increasingly prioritizing features such as foldable phones and AI capabilities.

As the industry undergoes transformative shifts, Apple's newfound dominance sets the stage for a dynamic and competitive landscape in the global smartphone market.