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Apple loses top spot to Samsung in smartphone market

Apple loses its top spot to Samsung in the smartphone market as iPhone shipments drop, facing stiff competition from Chinese brands.

Apple, once the leading smartphone maker, has slipped from its top spot according to recent data from IDC. The company faced a significant decline in iPhone shipments, dropping by about 10 percent in the first quarter of 2024. This setback was attributed to stiff competition from Android smartphone manufacturers vying for the top position.

Samsung emerges as the new leader

Global smartphone shipments experienced a 7.8 percent increase, reaching 289.4 million units in the first quarter. Samsung Electronics emerged as the new leader with a commanding 20.8 percent market share. In contrast, Apple fell to the second spot with a 17.3 percent market share. The rise of Chinese brands like Huawei and Xiaomi further contributed to Apple’s decline.

Chinese brands reshaping the market

Chinese smartphone maker Xiaomi secured third position with a market share of 14.1 percent in the first quarter. This shift in the market landscape underscores the growing dominance of Chinese brands in the global smartphone market. As these brands continue to innovate and offer competitive products, they are reshaping the industry.

Apple faced challenges in the Chinese market, where its smartphone shipments shrank by 2.1 percent in the final quarter of 2023. This decline was attributed to restrictions imposed by Chinese companies and government agencies, limiting the use of Apple devices amongst employees. These restrictions mirror similar actions by the US government on Chinese apps for security reasons.

Future prospects

Looking ahead, Apple’s upcoming Worldwide Developers Conference in June is expected to showcase updates to the software powering iPhones, iPads, and other Apple devices. Investors are particularly interested in updates on artificial intelligence development, an area where Apple has been relatively silent. The company’s loss of the title of the world’s most valuable company to Microsoft earlier this year further highlights the competitive landscape in the tech industry.

As Apple navigates these challenges and opportunities, the smartphone market continues to evolve, driven by innovation and competition amongst industry players.

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