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Apple, Samsung Smartphone Shipments Decline Amid Rising Chinese Competition: IDC Report

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Global smartphone shipments for Apple and Samsung declined in the fourth quarter of 2024 as Chinese manufacturers, including Xiaomi, Oppo, and Honor, intensified competition, according to preliminary data from the International Data Corporation (IDC).

The global smartphone market has rebounded after two years of decline, driven by the aggressive expansion of Chinese brands into low-end devices and their dominant focus on the domestic market. Chinese companies shipped 56% of global smartphones in the fourth quarter, marking their highest combined volume ever in a single quarter.

Apple and Samsung See Shipment Declines

Apple’s shipments fell by 4.1% to 76.9 million units, while Samsung’s declined by 2.7% to 51.7 million units during the same period. Despite the downturn, Apple maintained its position as the top global smartphone brand for 2024 with an 18.7% market share, followed closely by Samsung at 18%.

Meanwhile, Xiaomi, which held 13.6% of the market, showed the fastest growth among the top five smartphone brands, with a 15.4% increase in shipments. In contrast, Apple’s total shipments for the year dropped by 0.9%, and Samsung’s fell by 1.4%.

Chinese Manufacturers Drive Market Growth

Chinese smartphone makers leveraged their competitive edge in low-end and mid-range devices to expand their market presence, particularly in Europe and Africa. Their focus on affordability and value for money has resonated with consumers, allowing them to achieve record-high shipments in the fourth quarter.

Nabila Popal, senior research director for worldwide client devices at IDC, expressed optimism for continued growth in 2025. However, she also highlighted industry uncertainties due to the possibility of new tariffs from the incoming U.S. administration.

Foldable Smartphone Market Struggles

Despite growth in several regions, demand for foldable smartphones has been underwhelming. IDC research director Anthony Scarsella noted that even with heavy promotions and marketing, consumer interest in foldables has remained flat. As a result, smartphone makers are reallocating research and development budgets away from foldable devices.

The evolving landscape of the global smartphone market underscores the increasing influence of Chinese brands and the shifting consumer demand for innovative yet cost-effective options.

 

Xiaomi Boosts EV Delivery Targets Amid Surging Demand

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Increased Goals Reflect Growing Market Success

Xiaomi Corp has raised its 2023 electric vehicle (EV) delivery target for the third time, now aiming to deliver 130,000 units of its debut SU7 sedan. This is a significant increase from its initial goal of 76,000 when the car launched in March.

The SU7, inspired by Porsche designs, has captivated buyers with a starting price below $30,000, undercutting Tesla’s Model 3 in China by $4,000. Xiaomi’s success reflects broader trends in China’s EV market, where electric and plug-in hybrid vehicles accounted for over half of October’s auto sales, a 56.7% year-on-year increase.

Scaling Production to Meet Demand

Xiaomi has ramped up production since June, doubling shifts at its factories and introducing the premium SU7 Ultra, priced above $110,000. The company’s manufacturing facilities now have a capacity of 20,000 units per month, with room for further growth.

President Lu Weibing highlighted Xiaomi’s continued investment in both hardware and software to support new models and autonomous driving technology.

Financial Performance and Market Position

In the third quarter, Xiaomi reported revenue of 92.5 billion yuan ($12.77 billion), surpassing analysts’ expectations of 91.1 billion yuan. However, its EV unit remains unprofitable, recording a loss of 1.5 billion yuan for the quarter, despite a 17.1% gross profit margin.

Xiaomi’s smartphone division remains a cornerstone of its business, maintaining its rank as the world’s third-largest smartphone maker with a 14% market share and 42.8 million units shipped in Q3.

The company’s adjusted net profit rose 4.4% to 6.25 billion yuan, exceeding market estimates of 5.92 billion yuan.

Future Projections and Market Expansion

Analysts at Huatai Securities forecast Xiaomi will deliver 400,000 EVs in 2025, with EV sales projected to contribute 20% of revenue, compared to 8% this year. To support growth, Xiaomi plans to expand its retail footprint in mainland China from 13,000 to 15,000 stores by year-end and to 20,000 by 2024.

The company’s strategic push into EVs demonstrates its ambition to diversify revenue streams and solidify its position in the competitive Chinese market.