Global Smartphone Market Sees Shift in Power Dynamics
The global smartphone market has witnessed a significant turnaround in the fourth quarter, with Chinese companies making substantial gains at the expense of industry giants Apple and Samsung. According to preliminary data from the International Data Corporation (IDC), the market has rebounded strongly after two years of decline, driven primarily by the aggressive expansion of Chinese companies.
Chinese Companies on the Rise
Xiaomi, Oppo, and Honor have been instrumental in driving this growth, focusing on low-end devices and the domestic market. As a result, Chinese mobile makers accounted for a record 56% of global smartphone shipments in the fourth quarter, marking the highest combined volume ever in a quarter. Their expansion into Europe and Africa has been fueled by their affordable and mid-range devices.
Apple and Samsung Feel the Heat
Meanwhile, Apple’s global shipments fell by 4.1% to 76.9 million units, while Samsung’s shipments dropped by 2.7% to 51.7 million units. This decline is largely attributed to the intense competition from Chinese companies. Despite topping the global smartphone market in 2024 with an 18.7% share, Apple’s shipments fell by 0.9% last year, while Samsung’s declined by 1.4%.
Xiaomi Leads the Charge
Among the top five smartphone brands, Xiaomi showed the fastest growth, with a 15.4% increase in shipments. This rapid expansion has enabled the company to close the gap with its competitors. Nabila Popal, senior research director for worldwide client devices at IDC, notes that while the industry remains optimistic about continued growth in 2025, the threat of new and increased tariffs from the new US administration has elevated uncertainty across the industry.
Foldable Smartphones Lose Steam
Interestingly, despite intensified promotions and marketing, there has been a decreased demand for foldable smartphones. As a result, smartphone makers have started shifting research and design spend away from foldable devices, as consumer interest remains flat. According to Anthony Scarsella, research director for client devices at IDC, this shift in focus is a response to the lack of enthusiasm for foldable smartphones.
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