iPhone Secures Record 50% Market Share as Global Smartphone Market Revenues Experience 2% Decline

The global smartphone market experienced a 2% decline in revenues, falling just below $410 billion in 2023, accompanied by a 4% decrease in shipments to 1.17 billion units, as revealed in a recent report on Friday. This dip is primarily attributed to a 2% increase in the average selling price (ASP) of smartphones worldwide, reaching an unprecedented $350.

Counterpoint Research identified Apple (NASDAQ:AAPL) as the market leader, holding a 50% share of global smartphone revenues—its highest-ever for a full year. Despite double-digit declines in the non-premium segments, the premium smartphone category saw an 8% growth, driven by innovations like foldables, features such as GenAI, and notably, Apple's success.

For the first time in a full year, Apple outpaced Samsung (KS:005930) as the largest player in shipments. The United States significantly contributed to Apple's growth, supplemented by double-digit expansion in emerging markets like India, Caribbean and Latin America (CALA), and the Middle East and Africa (MEA), according to Research Director Jeff Fieldhack.

Meanwhile, Samsung, a long-standing market leader in shipments, faced challenges and ceded some share in premium markets to Apple. Increased competition from Chinese OEMs, including Xiaomi and vivo, particularly in the mid-tier phone segment, impacted Samsung's market position, especially in markets like India.

The report also anticipates a continued upward trajectory for global smartphone ASPs, driven by preferences of vendors, carriers, and retailers to focus on higher-end models. Consumers, backed by improved financing options, have demonstrated a greater willingness to invest in longer-lasting devices. Additionally, the resurgence of Huawei in China is expected to contribute to the overall growth in ASPs, as mentioned in the report.

(With Agency Inputs)