The global smartphone market recorded its best quarter since 2021, according to analyst firm Canalys. Smartphone shipments grew 5% year-on-year worldwide in Q3 2024, hitting 309.9 million units.

The analysts put this down to “aggressive launches” from smartphone brands such as Samsung and product announcements and supply chain improvements from Apple.

Samsung nabbed the top spot in the analyst's rankings with 57.5 million shipments in Q3, while Apple retained second place from last quarter with a record 54.5 million units. Xiaomi took third place with 42.8 million units shipped and a 14% market share

Canalys Analyst Le Xuan Chiew said consumer demand for Apple's new suite of generative AI tools, Apple Intelligence, was one factor behind Apple’s record-setting performance. He thinks many consumers are looking to upgrade from “older iPhone 12 and 13 models to embrace this new technology.” Apple Intelligence only runs on the iPhone 15 Pro and up, or iPads or Macs with an M1 chip and up because the tools needs high amounts of computing power to work.

Despite recent wins, Chiew predicted some obstacles for Apple in the quarter ahead. He argues that “the delayed deployment of Apple Intelligence may substantially hinder Apple’s performance both in the festive fourth quarter and in 2025.”

Though Apple Intelligence is currently available on eligible devices with iOS 18.1, according to Bloomberg’s Mark Gurman, the full version of the Apple Intelligence upgraded Siri won't be available until the spring of 2025. This means that consumers may still have a lot of time to wait to fulfill their ultimate Mac and iPhone AI dreams.

Chiew also pointed to Apple opening up factories in regions like India, as reducing "lead times" and stimulating local demand for its phones.

Looking at previous quarters, 2024 has been a good year for the biggest players in the smartphone world. Smartphone shipments jumped 6% in the second quarter, in what was the biggest quarter of year-over-year growth seen in the last three years, with Latin America and Europe leading the way in terms of sales.

“Canalys remains cautiously optimistic for the rest of the year, with vendors sharpening inventory positioning and brand building to fuel growth into 2025,” commented Chiew.

By: DocMemory
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