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Apple is threatening to topple Samsung to change into the smartphone chief

Samsung’s year-long run because the world’s largest smartphone firm is underneath critical menace from Apple. The iPhone maker simply posted its highest Q1 market share ever, almost overtaking Samsung as the highest smartphone maker. The 2 corporations have been separated by lower than a proportion level within the first quarter of 2023.

In response to the analysis agency Counterweight research, the worldwide smartphone market fell 14% year-on-year (YoY) in Q1 2023. The corporate reported shipments of 280.2 million items within the first three months of the yr, a lower. in comparison with 326.4 million items in the identical interval final yr . Shipments additionally fell 7% from 302.6 million items within the final quarter of 2022.

The continued financial scenario is inflicting this slowdown. All main smartphone distributors suffered gross sales declines in Q1 2023. However issues now look a lot worse for Samsung than for rival Apple. Its shipments fell 19% within the final quarter, whereas the iPhone maker skilled a negligible 2% drop. Because of this, Apple accounts for 20.7% of the worldwide smartphone market whereas Samsung’s share is 21.6%.

That is arguably Apple’s highest ever market share within the first quarter of any yr. Its market share in Q1 2022 was 18.1%. Samsung accounted for 22.8% of the worldwide smartphone market within the first three months of final yr. But it surely failed to keep up that lead hole within the first quarter of 2023. The Korean large is now in peril of ceding the smartphone throne to the iPhone maker.

Apple often leads the quarterly rankings within the final quarter of the yr due to the discharge of the newest iPhones. Nonetheless, such an in depth battle for the highest spot within the first quarter does not bode properly for Samsung. The Korean firm launched the Galaxy S23 flagship in early February this yr. It ought to have saved a superb lead over Apple within the first quarter of 2023. It stays to be seen whether or not Samsung can have any luck within the second quarter.

Smartphone market Q1 2023 Apple Samsung

Apple has outstripped Samsung in smartphone revenue sharing

Since Apple does not make finances telephones, its common promoting worth (ASP) is commonly a lot larger than that of different smartphone distributors. Unsurprisingly, it additionally leads quite a bit by way of income. The iPhone maker accounted for about 80% of whole working revenue within the smartphone business in Q1 2023, main by 72 proportion factors over Samsung. Apple additionally generates nearly half of whole smartphone gross sales though the Korean firm elevated ASP by 17% YoY to $340.

Xiaomi, Oppo and Vivo are the three greatest smartphone corporations after Samsung and Apple, in that order. In addition they suffered a extreme drop in gross sales within the first quarter of 2023. Xiaomi, which had the most important lower amongst all 5 suppliers (22%), barely elevated the common promoting worth however this That is not sufficient to considerably enhance income and income sharing. Total, international smartphone gross sales fell 7% year-on-year to round $104 billion in Q1 2023 as a consequence of poor gross sales.

Q1 2023 smartphone market revenue profit ratio

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Updated: May 7, 2023 — 12:12 am

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