The smartphone market is recovering. While 2023 was predicted to be the worst year for mobile phone sales, the third quarter results suggest a return to growth faster than expected. According to the latest study by Canalys, the global market contracted by only 1% to reach 294.6 million units sold.
The market is boosted by the release of new models including Apple’s iPhone 15 and Samsung’s Galaxy Z Flip and Fold 5 series. However, the two leading brands are not fully benefiting from the improvement. Although Samsung maintains pole position with 20% market share, its sales fall by 9% in one year. A solid second with 17% market share, Apple, for its part, saw its sales decline by 6% over the last twelve months.
Transsion, a new entrant from (again) China
Behind the American and the Korean, the Chinese manufacturers are putting pressure. Xiaomi, including its POCO sub-brand, consolidates its third place with an increase in sales of its smartphones of 2% over the year. A growth that Canalys puts down to the success of the launch of the economical Redmi series in emerging markets.
Oppo, which is experiencing setbacks on the French market, occupies fourth place, integrating its other brand OnePlus, despite an 8% drop in sales with 9% market share. Another Chinese brand, little known in Europe, is on par with Oppo by recording a dazzling increase of 40% in one year. Transsion, a holding company bringing together the Tecno, Infinix and iTel brands, sold 26 million units worldwide in the third quarter.
Founded in 2006 in Hong Kong and now headquartered in Shenzhen, Transsion is the largest smartphone manufacturer in the African market where it has established a factory in Ethiopia. The group is also firmly established in India, Pakistan and Bangladesh, in the Middle East while extending its presence in Latin America. Its goal: to become the most popular brand in emerging markets.
The foldable market is not yet folded
To differentiate themselves and play the card of margin rather than market share, established brands are positioning themselves at the high end and in particular in the new segment of foldable smartphones. Opening this market in 2019, Samsung launched versions 5 of its Galaxy Z Fold and Galaxy Flip this summer. Huawei, Xiaomi, Oppo and even Google have since also introduced foldable models.
On Apple’s side, support for USB-C and the arrival of dynamic display (Dynamic Island) have boosted its sales. To compete with the iOS world, “ Android brands are working to improve the integration of their ecosystem to attract consumers », observes Canalys. This leads some Chinese brands to develop their own operating systems such as HarmonyOS from Huawei and HyperOS from Xaomi.
“These in-house operating systems are expected to open up new revenue opportunities beyond smartphones, for example through IoT and electric vehicles », Estimates the research firm. He points out that maintaining a competitive advantage and user interest nevertheless requires making significant investments in R&D.
What about 2024? Canalys expects the global smartphone market to return to modest growth next year. After having significantly destocked in recent months, manufacturers should close 2023 with more balanced stock levels. Regional conflicts and geopolitical tensions may, however, affect certain geographies. It is up to manufacturers to adapt their strategies to seize growth opportunities where they are found, the study concludes.