Strong Q1 global smartphone shipments could be just the start of an AI-led rebound

Canalys Senior Analyst Sanyam Chaurasia summarized Samsung’s return to the top by saying, “Samsung’s S24 launch reflects a pivotal moment in its AI and premium strategy, with the potential to reshape the industry. Compared to last year’s S23 release, Samsung launched the Galaxy S24 a month earlier and shipped 13.5 million units, a 35% year-over-year shipment growth vs its predecessor in Q1.”

The analyst continued by adding, “The pull factor from Galaxy AI, the large scale of retail points elevating the customer experience, and a better time-to-market strategy, drove the strong performance of the Galaxy S24. Beyond empowering Samsung’s premium positioning, it also signals a broader shift in the smartphone industry towards AI-driven innovation. Samsung will look to leverage its early momentum by crafting compelling value propositions for users with Galaxy AI; solidifying premium competitiveness and fostering brand stickiness.”

The global smartphone market bounces back during the first quarter of 2024

During the January through March period, Samsung’s shipments of 60 million phones allowed it to grab a leading 20% market share (down from last year’s Q1 share of 22%). Samsung saw its Q1 shipments decline 1%. As we said, Apple shipped 48.7 million iPhones during the opening quarter of 2024, a 16% decline on an annual basis. As a result, Apple’s market share dropped from 21% during the 2023 first quarter to 16% during the first quarter this year.

And at number five was Oppo. The company saw its Q1 2024 phone shipments hit 25 million units, off 6% from the 26.6 million phones it shipped during Q1 2023.

Can the global smartphone market continue to recover? If consumers continue to show a strong interest in AI and manufacturers are smart enough to add new AI features, the rest of 2024 and even 2025 could continue to show rebounding strength in smartphone shipments worldwide.