Global smartphone sales in Q2 of the calendar year showed a notable rebound, driven by a combination of factors. Both Canalys and IDC report growth in shipments, with Canalys noting a 12% rise and IDC citing a 6.5% increase year-on-year.
This marks the third or fourth consecutive quarter of growth, depending on the source. The resurgence is attributed to a dual trend: the proliferation of high-end devices featuring Generative AI (Gen AI) and strong demand for budget-friendly options among consumers.
In terms of specific figures, Canalys estimates 288 million smartphones were shipped globally in the quarter, while IDC’s figure is slightly lower at 285.4 million units. Despite differences, both firms agree on the overall positive trajectory driven by technological innovations like Gen AI and recovering demand in the mass market segment.
This growth contrasts with Apple’s decline in China, where iPhone sales fell sharply due to strong competition from Huawei’s resurgence in the high-end market.
The market dynamics reveal a polarization between premium and low-end segments. Apple and Samsung dominate the high-end market, leveraging a trend towards “premiumization,” while Chinese manufacturers focus on capturing volume share with competitively priced devices. Xiaomi notably saw a 27.4% increase in shipments year-on-year, challenging Apple’s market position closely.
Looking forward, IDC anticipates further growth in Gen AI smartphones, which are expected to constitute 19% of the market with 234 million shipments by year-end. This innovation is forecasted to accelerate, potentially reaching 54% market penetration by 2028, although concerns about privacy and tech over-hyping remain pertinent.
Samsung emerged as the market leader in Q2 with an 18% share and 53.9 million devices shipped, followed closely by Apple with 16% market share and 45.2 million units. Chinese brands like Xiaomi and Vivo also made significant gains, reflecting their strategies to expand their market presence through aggressive pricing and technological advancements.
The smartphone market is characterized by a blend of technological innovation driving premium sales and cost-conscious consumers stimulating growth in the low-end segment. As more Gen AI smartphones enter the market in the coming months, the landscape is expected to evolve further, potentially reshaping consumer preferences and competitive dynamics across the industry.
