In recent quarters, the smartphone market has shown signs of recovery following challenging years. According to recent reports, smartphone shipments in the third quarter of 2024 increased by four percent compared to the same period last year, reaching 316.1 million units.

The king is dead, long live the king

Although the market is generally recovering, Samsung is facing its own challenges that have affected its market share.

The Korean giant holds the leading position with a market share of 18.3 percent, but recorded a decline compared to previous years. The company has distinguished itself with innovative models such as the Galaxy Z Fold6 and Galaxy Z Flip6, which have received positive reviews thanks to their advanced technology and design. These devices use improvements based on artificial intelligence, which has attracted the attention of consumers.

The situation is further complicated in specific regions. In Japan, for example, Samsung’s share of the premium market fell to just 7.9 percent, indicating the difficulties it faces in this key segment. In contrast, in Brazil it has maintained a significant share of 37.7 percent, although it faces increasing competition, particularly from Motorola and Xiaomi.

Apple

As for Apple, it continues to enjoy strong demand (with 17.7% of shipments for Q3 2024) for its models, especially in the premium smartphone segment. Despite some supply challenges and growing competition, Apple continues to strengthen its market share thanks to continuous innovation and a strong brand. With new models and improvements in software, Apple continues to attract consumers who are looking for quality and reliability.

Chinese manufacturers taking larger share of the pie

However, challenges come from Chinese brands that offer competitive prices and features, making Samsung’s position even more difficult.

Brands like Xiaomi, Oppo and Vivo have managed to win a large part of the market share, especially in developed countries, with an aggressive marketing strategy, attractive design and favorable prices. Their ability to quickly adapt to market trends and innovation in the field of software and hardware has enabled them to compete with leading global players. Also, the strong support of the Chinese government and the domestic market provide them with a solid basis for further growth and development.

Vivo had a growth of 22 percent compared to last year, which is an extremely large growth and it can be seen that it is taking a piece of the pie that Samsung used to hold. Vivo primarily competes in the mid-range and high-end segment of the smartphone market. Their devices offer a combination of premium features and more affordable prices, thus attracting a wide range of users who are looking for high quality without too much of a blow to the wallet.

What does the future hold?

Looking ahead, the smartphone market faces numerous challenges and opportunities. Tech innovations, including improvements in artificial intelligence and 5G connectivity, could drive demand and shape new trends. However, manufacturers will need to focus on adjusting prices and creating products that meet local needs in order to remain competitive. In the coming years, success will depend on the ability of brands to quickly adapt to changes in the market and consumer needs.