Trendforce’s latest report highlights significant growth in smartphone production during Q1 2024, but it also forecasts a potential decline in the upcoming quarter. Here’s a detailed look at the findings.
Trendforce Report: Q1 2024 Smartphone Production Overview
In the first quarter of 2024, smartphone production saw an impressive 18.7% year-on-year growth, resulting in a total shipment of 296 million units. This surge can be attributed partly to the low production volumes in early 2023.
Trendforce Report: Production and Market Share
| Company | Production (in millions) | QoQ Change | Market Share |
|---|---|---|---|
| Samsung | 59.5 | 11.2% | 20.1% |
| Apple | 47.9 | -39% | 16.2% |
| Xiaomi | 41.1 | -4.6% | 13.9% |
| Oppo | 33.8 | -15.5% | 11.4% |
| Transsion | 29.8 | 1% | 10.1% |
| vivo | 21.7 | -14.9% | 7.3% |
Market Leaders
- Samsung: Leading the market with 59.5 million units produced, capturing 20.1% of the global market share.
- Apple: Produced 47.9 million units, holding a 16.2% market share despite a 39% QoQ decline.
- Xiaomi: Manufactured 41.1 million units, securing a 13.9% market share with a slight decline of 4.6% QoQ.
These six brands together account for 80% of the global smartphone market, with Samsung alone commanding a fifth of the total share.
Strategic Insights and Market Dynamics
Market Strategy from 2023
Last year, smartphone manufacturers focused on pushing older inventory and delaying new product launches to clear stock. This strategic move impacts the comparative data with previous months, reflecting the growth seen in early 2024.
Xiaomi’s Market Position
Xiaomi has successfully navigated past its inventory issues and is increasing investments in emerging markets, showing a positive trend in its market performance.
Oppo’s Market Challenges and Recovery
- Domestic Market: Oppo faced challenges in China, where Honor emerged as the leading manufacturer.
- Patent Issues: The company resolved its patent disputes with Nokia, enabling it to re-enter the European market.
- European Market: Oppo plans to return to the German market in the second half of 2024, which may boost its production and sales figures.
Forecast for Q2 2024
Despite the robust growth in Q1, Trendforce expects a decline in smartphone production for the April-June 2024 quarter. This anticipated decrease is part of a broader trend and market adjustment following the strategic inventory management seen in 2023.
Conclusion
The smartphone industry experienced a notable rebound in Q1 2024, driven by strategic inventory management and increased production. However, the upcoming quarter may see a decline as the market adjusts. Key players like Samsung, Apple, and Xiaomi continue to dominate, while companies like Oppo are poised for recovery and growth in international markets.
Stay tuned for more updates as we monitor the market dynamics and production trends in the smartphone industry.
ALSO READ:
