Chinese phones 'nibble' at Apple and Samsung's market share

Apple and Samsung's smartphone market share will both decrease in 2024, while Xiaomi and some Chinese companies will increase steadily over the years.

A new report from research firm Counterpoint Research shows that the smartphone market last year improved after a period of consecutive decline, with sales increasing by 4% compared to 2023. In which, Samsung is still leading, but the gap with the following brands such as Apple and Xiaomi is narrowing.

Specifically, Samsung's market share reached 19%, Apple's 18%, both down 1% compared to last year. According to analysts, the main contributor to Samsung's sales is the A series devices, along with the Galaxy S24 - positioned as the first AI phone. Meanwhile, Apple has Apple Intelligence, but this AI toolkit is not popular, does not support Chinese when launched, causing sales to not grow strongly.

Smartphone market share of leading global brands in 2024. Photo: Counterpoint

The rankings of the top five brands remained unchanged after three years. However, Oppo's market share fell from 9% to 8%, equal to Vivo's, while Xiaomi was the only Chinese manufacturer to grow. According to analysts, Xiaomi's rise can be attributed to restructuring its product portfolio as well as expanding its presence.

Meanwhile, Apple’s market share has declined, but its revenue has increased as consumers have shifted to its Pro models. “iPhone sales are down, but consumers are shifting to the premium segment, which is helping to offset the decline,” said Ivan Lam, a senior analyst at Counterpoint Research. He said sales of its Pro devices have surged in markets like China.

Xiaomi Mix Flip foldable screen phone. Photo: Tuan Hung

The group of phone brands outside the top 5 also increased market share from 31% to 33%, with a significant contribution from Huawei phone sales, but the specific level has not been announced.

The research firm also said that the smartphone market is recovering after a period of decline. The reason given is that smartphones play an increasingly important role in life, making them an "essential product". In addition, the improving economic situation helps the smartphone market recover.

The trend toward “premiumization” in phone usage is also driving consumers to spend more money. Sales of smartphones above $1,000 hit a record last year. “In 2025, sales may increase by 4%, but revenue will continue to outpace that with an 8% year-on-year increase,” Counterpoint Research predicts.