Apple has achieved a significant milestone by becoming the world’s biggest smartphone maker in terms of volume. This accomplishment highlights the tremendous success of the iPhone manufacturer. However, it does not guarantee continued growth for the company.
According to research firm International Data Corporation, global smartphone shipments reached a total of 1.17 billion units in 2023. Out of this, Apple accounted for 234.6 million units, securing a 20.1% market share.
For the first time since 2010, Samsung Electronics lost its top position with a market share of 19.4% and 226.6 million units shipped last year. Following Samsung were Chinese smartphone makers Xiaomi, OPPO, and Transsion Holdings.
Apple’s ability to maintain its success and resilience is largely attributed to the rising popularity of premium devices, which now constitute over 20% of the market. Aggressive trade-in offers and interest-free financing plans have fueled this trend, as stated in a report by IDC research director Nabila Popal.
Although Apple’s performance surpasses that of its peers, the stock market does not seem to reflect this achievement. Apple shares experienced a 2.1% decline early on Tuesday, leading to a 5.5% decrease so far this year.
There are two key factors contributing to this contradiction. Firstly, Apple’s success is occurring within a slowing market as global smartphone shipments declined by 3.2% in 2023. While Apple managed to achieve 3.7% annual volume growth, there are concerns about sluggish demand in the future. This concern is particularly prominent in the Chinese market, which has prompted Apple to offer promotional discounts on newer iPhones in China.
Secondly, the stock market is forward-looking, and the smartphone industry is constantly evolving. Future generations of smartphones are expected to possess artificial intelligence capabilities. However, Apple has not been transparent about its AI strategy, creating uncertainty about its competitiveness in this area.
UBS analysts predict that by 2024, 40% of Apple’s smartphone shipments will have generative AI capabilities, increasing to 80% by 2025.
In conclusion, Apple’s achievement as the world’s largest smartphone maker is commendable, but the company faces challenges in a slowing market and the evolution of the smartphone industry. Only time will tell if Apple can maintain its dominance in the face of these developments.