Counterpoint Research: Global smartphone shipments in the third quarter increased by 2% year-on-year, reaching 307 million units.

According to the Counterpoint Research Global Smartphone Market Monitoring Report for the third quarter of 2024, global smartphone shipments increased by 2% year-on-year, reaching 307 million units. Global smartphone revenue increased by 10% year-on-year, with an average selling price increasing by 7%, both reaching historical highs. This marks the fourth consecutive quarter of growth in the global smartphone market. The strong year-on-year growth in the smartphone market over the past few quarters is mainly attributed to the recovery in macroeconomic conditions and consumer demand. When commenting on the performance of the smartphone market in different regions in the third quarter, Senior Analyst Prachir Singh stated: "The global macroeconomic crisis has essentially passed, and with the normalization of past benchmarks, the previous recovery wave has begun to slow down. Some markets such as Latin America, Japan, Eastern Europe, and Southeast Asia continued to recover and achieved year-on-year growth in the third quarter. However, due to slowing economic recovery, shipments in Western Europe and the Middle East Africa declined year-on-year, with ongoing conflicts in each region continuing to suppress consumer confidence." In some of the largest global markets, such as the United States, shipments declined year-on-year due to record low replacement rates continuing to impact the market. Smartphone brands in India began stocking up in various sales channels earlier than usual for the holiday season, which boosted year-on-year growth. As the economy and consumer demand continued to improve, shipments in China in the third quarter also saw year-on-year growth, with Huawei's recovery serving as a driving factor. While shipment growth has slowed in recent quarters, global smartphone revenue accelerated in the third quarter of 2024, increasing by 10% year-on-year to reach a historical high for the third quarter. Apple Inc. led the market in smartphone revenue, capturing a 43% share and setting historical records for revenue, shipments, and average selling price in the third quarter. Commenting on the performance of Apple Inc. (AAPL.US), Research Director Jeff Fieldhack stated: "Apple Inc.'s success in the third quarter was mainly due to the early launch of the iPhone 16 series and an increasing focus on Pro versions in the product lineup, as well as continued expansion into non-core markets. However, caution should still be exercised, as the performance of the iPhone 16 series varies across regions, with sales declining year-on-year in major markets such as the United States compared to the 15 series. However, the huge user base of iOS devices three to four years ago may help maintain stable sales of the iPhone 16 series in the coming quarters, especially with the continued introduction of Apple Intelligence features." Samsung's revenue and shipments declined by 2% year-on-year, mainly due to declines in India and Latin America. Xiaomi's revenue exceeded the growth in shipments, primarily due to an increase in the proportion of high-end devices, dominated by the Xiaomi 14 series. In August, Xiaomi briefly became the second largest in sales globally. vivo was the fastest growing among the top five smartphone brands, becoming the largest smartphone brand in terms of shipments in both China and India in the third quarter. OPPO's shipments and revenue declined year-on-year in the third quarter. The brand's global sales revenue resumed year-on-year growth in September, led by Latin America and "Asia Pacific Other" regions. Revenue from markets outside the top five smartphone brands recorded strong double-digit year-on-year growth, significantly surpassing shipment growth in the third quarter. Android brands such as Huawei, Alphabet Inc. Class C, and Motorola drove the growth of other brands, with Motorola achieving its highest quarterly shipment since entering the smartphone era. With strong revenue growth for most major brands, the market share of the $400 segment increased by 2% year-on-year in the third quarter of 2024. The ongoing trend of high-end adoption in various regions is encouraging smartphone brands to reconsider their high-end product portfolios and device financing strategies. The high-end trend is expected to continue in the coming years, and the average selling price of smartphones globally is projected to grow at a compound annual growth rate of 3% between 2023 and 2028. Research Director Tarun Pathak commented on the prospects of the smartphone market, stating: "The global smartphone market has matured, and shipments are expected to remain stable in the coming years. Emerging markets such as India, the Middle East Africa, and Southeast Asia may drive growth. With the ongoing high-end trend in various markets, smartphone revenue is expected to continue to grow by 2028. As adoption increases, new technologies such as GenAI and foldable screen smartphones may also drive average selling price growth. By 2028, it is expected that more than half of smartphones shipped will have GenAI functionality, and as more diverse use cases emerge, this feature will become widespread in different price ranges."