Apple and Samsung, the world’s top two smartphone makers, saw their global market shares decline last year, marking the first such drop in eight years since 2016. According to market researcher IDC on Jan. 14, Apple led with an 18.7% share, while Samsung followed with 18.0%, with each company’s share dropping by 1.4 and 1.5 percentage points on-year, respectively.
Eight years ago, Samsung and Apple swiftly rebounded by launching innovative models like the Galaxy S8 and iPhone X. However, this year’s outlook appears less promising. The smartphone market remains sluggish in the post-pandemic era, with extended replacement cycles dampening demand. Adding to the challenge, Chinese brands such as Xiaomi and Transsion are gaining ground in regions like Europe and Africa, further eroding Samsung and Apple’s market share.
A tech industry insider said, “Samsung is betting heavily on artificial intelligence (AI) features in their upcoming Galaxy S25,” adding, “With hardware competition stagnating, the success of smartphones now depends on how well AI meets user expectations.”
According to IDC, Samsung shipped 223.4 million Galaxy smartphones last year, down 1.4% from 2023. While the Galaxy S24, featuring the world’s first built-in AI, saw higher shipments than its predecessor, the flagship foldable Galaxy Z series underperformed. Increased competition in mid-range phones across India and Southeast Asia contributed to the overall decline.
Apple faces similar challenges. Last year, the company shipped 232.1 million iPhones, down 0.9% from the previous year. The delayed launch of its on-device AI feature, Apple Intelligence, led to a less-than-enthusiastic market response. China’s push for “patriotic consumption” and subsidies for domestic brands contributed to weaker iPhone sales. According to Counterpoint Research, iPhone sales during China’s Singles’ Day in November dropped by more than 10% year-on-year, while Huawei’s sales grew by 7%.
In 2016, Samsung and Apple faced similar pressure from Chinese manufacturers. Huawei entered the U.S. market with flagship phones priced around $300, while Oppo and Vivo doubled their shipments to dominate China’s domestic market.
Apple countered by launching the redesigned iPhone X for its 10th anniversary, successfully regaining market share. Samsung also retained its top position by introducing bezel-less designs in the Galaxy S8 and Note 8, which proved to be major hits.
This year, the two smartphone leaders are confronted with intensified challenges as Chinese companies expand their reach. Huawei, recovering from U.S. sanctions, is growing its high-end flagship phone lineup in its domestic market, while Xiaomi and Transsion are increasing their market share in emerging regions like India and Africa by offering both affordable and value-driven flagship phones.
