Apple overtook Samsung as the top global smartphone manufacturer in 2023, according to preliminary data from market research firm IDC. If the data is accurate, it is the first time Samsung has lost the top spot to another company in 13 years. In 2013, Nokia held the number one spot, Samsung was second, and Apple didn't even feature in the top five.
IDC bases its analyses on market share of global smartphone shipments across the year. According to the report, Apple took a 20.1% market share, while Samsung took 19.4% of the share.
Apple was also the only company in the top three to achieve positive growth year-on-year, increasing shipments from 226.3 million units to 234.6 million units.
"While we saw some strong growth from low-end Android players like Transsion and Xiaomi in the second half of 2023, stemming from rapid growth in emerging markets, the biggest winner is clearly Apple," said Nabila Popal, research director with IDC's Worldwide Tracker team. "Not only is Apple the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever. All this despite facing increased regulatory challenges and renewed competition from Huawei in China, its largest market."
Samsung's drop in rank is interpreted as only partly down to strong sales of Apple's iPhone 14 models and the company's debut of the iPhone 15 series, while diversification in the Android market is also said to be a factor. Other impacting variables are said to include Huawei's resurgence in China, and brands like OnePlus, Honor, Google, and others launching competitive devices in the lower price range of the high-end market.
Overall, the smartphone market declined by 3.2% to 1.17 billion units shipped across the year, driven largely by macroeconomic challenges and elevated inventory early in the year. However, a growth spurt in the latter stages of 2023 suggests the market could see a recovery this year, with foldable devices and increased interest in AI capabilities also said to be gaining traction.
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considering how many more models Samsung offers, especially in the budget range, it's still a pretty impressive feat that apple was able to outsell them
Overall, the smartphone market declined by 3.2% to 1.17 billion units shipped across the year,
Peak smartphone is already here.
This is why Apple is pushing higher and higher priced iPhones. In economics, companies in a declining market will increase the average selling price to make up for declining or stagnating volume.
So if we see headlines like "iPhone is selling worse this year", it doesn't mean much. It's expected. We need to look at average selling price to see how much money Apple is actually making instead of volume.
Why do *you* need to look at the average selling price? As a consumer that really shouldn't be of any concern to you. If iPhone is selling lower numbers in one year over the last, then it is just selling lower numbers. Unless you're a shareholder, that should be the end of the story for you.
I believe it goes back to the adage "An argument should not only be correct, but it should also be correct for the right reasons".
Many people here like to equate lower smartphone sales with the implication that Apple is no longer innovating, lagging behind or doomed because they are making less money. The reality is that even as smartphone upgrade cycles slow, Apple has been able to mitigate this by way of higher prices, more accessories and more services. The end result is improved profitability, even as they sell fewer units overall.
In short, Apple is moving from selling iPhones to selling to people with iPhones. It's an impressive pivot that completely goes against the popular narrative and it works because Apple has its own ecosystem and its own flourishing App Store, unlike Samsung and other android handset manufacturers.
