In 2024, the global smartphone market witnessed a resurgence, marking its first growth in two years. However, this growth was not uniform across all companies. While Apple and Samsung maintained their positions as the top two smartphone brands, both experienced a decline in shipments and market share. In contrast, Chinese company Xiaomi had a remarkable year, achieving the fastest growth among the leading players and narrowing the gap with its larger competitors.
Apple shipped 76.9 million smartphones in the last quarter of 2024, a decrease from 80.2 million in the same period the previous year, reflecting a 4.1% drop. This decline also impacted its market share, which fell from 24.7% in Q4 2023 to 23.2% in Q4 2024. Despite the downturn, Apple remained the top smartphone brand globally for both the quarter and the full year, shipping 232.1 million devices in 2024, a 0.9% decrease from 2023.
Samsung, the world's second-largest smartphone maker, faced similar difficulties. The company shipped 51.7 million devices in the fourth quarter, a 2.7% decline from the 53.1 million shipped a year earlier. Its market share dropped slightly from 16.4% to 15.6%. For the entire year, Samsung shipped 223.4 million units, marking a 1.4% decrease from its 2023 performance.
While Apple and Samsung experienced a slowdown, Xiaomi thrived. The company shipped 42.7 million smartphones in Q4 2024, a 4.8% increase compared to 2023. Xiaomi's market share also increased, reaching 12.9% in the quarter. For the full year, Xiaomi shipped 168.5 million smartphones in 2024, growing by 15.4% compared to 2023, making it the fastest-growing brand among the top five.
Xiaomi's success was driven by its strategy of offering affordable, feature-rich phones that appealed to price-sensitive customers, particularly in China and emerging markets. The company also expanded aggressively into regions like Europe and Africa, enhancing its global presence.
Xiaomi wasn't the only Chinese company to thrive in 2024. Overall, Chinese smartphone makers accounted for 56% of global shipments in the fourth quarter, a record for the industry. Brands like Vivo, Oppo, Huawei, and Transsion also saw strong growth, especially with their budget and mid-range models.
Vivo, for instance, tied with Transsion for fourth place in Q4 2024, shipping 27.1 million devices, a 12.7% year-over-year increase. Huawei, despite focusing mostly on high-end devices, performed well, particularly in its home market of China. These brands are making significant inroads in international markets, offering affordable alternatives to Apple and Samsung.
One reason for Apple and Samsung's declining shipments is their focus on premium devices. While these high-end models offer better profit margins, they are less appealing in markets where affordability is crucial. In contrast, Chinese brands are winning over consumers with devices that deliver good performance at lower prices.
Economic challenges like inflation and weak demand in some regions have also made it harder for Apple and Samsung to maintain their dominance. Aggressive competition from Chinese brands has eroded their market share, forcing them to rethink their strategies.
As 2025 begins, the smartphone market is expected to continue growing, though at a slower pace. Xiaomi and other Chinese brands are well-positioned to capitalise on this growth by expanding further into new regions and continuing to focus on budget and mid-range devices. Meanwhile, Apple and Samsung may need to find new ways to appeal to a broader range of customers to avoid losing more ground.