Global smartphone shipments increased by 6.5% during the second quarter, primarily due to the efforts of Samsung Electronics and Apple, according to preliminary data from IDC released on Monday. However, a complete resurgence in demand is still pending, as some markets continue to face challenges. The research firm noted that this marks the fourth consecutive quarter of growth in global shipments, with smartphone manufacturers increasingly turning to artificial intelligence to attract cost-conscious consumers and secure a larger market share.
The smartphone market is experiencing 'lots of excitement' due to rising average selling prices and the hype surrounding gen AI smartphones, which are projected to account for 19% of the market this year, according to Nabila Popal, research director at IDC's Worldwide Tracker team. Popal highlighted that while Apple and Samsung are dominating the high-end market and reaping the benefits of the premiumization trend, several leading Chinese OEMs are boosting shipments in the low-end segment to gain volume share amidst subdued demand. Consequently, the share of mid-range devices is facing challenges.
Apple recently hosted its developer conference, where it unveiled new AI features for iPhones, powered by OpenAI's ChatGPT. Similarly, Samsung held its Galaxy Unpacked event last week, announcing new models for its Galaxy fold and flip series, along with additional AI features. Samsung led the market with an 18.9% share of shipments in the second quarter, followed by Apple with 15.8% and Xiaomi with 14.8%.
