Key Points:
- Global smartphone production rebounds in Q1 2024, rising 18.7% year-over-year.
- Samsung dethrones Apple as the top producer, potentially due to the success of its AI-powered Galaxy S24 series.
- Aggressive production in Q1 by some brands may lead to inventory adjustments in Q2.
The global smartphone industry has shown signs of life in the first quarter of 2024, with production experiencing a robust 18.7% increase compared to the same period last year. This positive trend comes despite falling short of pre-pandemic highs that hovered above 300 million units shipped.
While the overall outlook is optimistic, a closer look reveals some intriguing developments at the brand level. TrendForce’s recent report highlights a potential shift in the competitive landscape, with Samsung surging to the top spot in terms of production volume. The South Korean giant churned out an impressive 59.5 million smartphones in Q1, surpassing its arch-rival Apple’s 47.9 million units.
Samsung’s success might be attributed, in part, to the strategic integration of Galaxy AI within its flagship S24 series. This innovative feature appears to have resonated with consumers, propelling sales and propelling the company to the forefront of the production race. Furthermore, Samsung’s commitment to refining Galaxy AI, with upcoming advancements planned for the Galaxy Z Fold 6, suggests they’re doubling down on this technology.
Apple, on the other hand, faced headwinds in the crucial Chinese market. The resurgence of Huawei and evolving consumer preferences seem to have dampened iPhone sales. This decline has necessitated adjustments within the component supply chain, although production plans for processor chips remain unaffected.
The report also sheds light on the performance of other prominent players. Oppo, including its sub-brands Realme and OnePlus, encountered stiff competition within its home turf, leading to a slower year-over-year growth compared to other Android brands. Despite aiming to maintain production levels from Q1, Oppo will likely need to navigate this competitive landscape effectively.
Transsion, the parent company of Infinix and Tecno, secured the fifth position with a remarkable 50% year-over-year growth in Q1. However, their aggressive production strategy, coupled with market overlap with established brands like Samsung and Xiaomi, resulted in inventory buildup. As a consequence, TrendForce predicts a potential 15% decline in Transsion’s production for the second quarter.
Vivo, encompassing its iQOO sub-brand, rounded out the top six with 21.7 million units shipped in Q1.
The smartphone industry appears poised for a dynamic year ahead, with technological advancements and strategic maneuvers shaping brand performance. While Samsung’s AI-powered approach has yielded early success, the coming quarters will reveal how other players adapt and innovate to capture market share.
