In the first quarter of 2024, Counterpoint Research released a report on the top ten best-selling smartphones globally, with all of them being from either Apple or Samsung. Apple’s iPhones dominated the list, with the iPhone 15 Pro Max, iPhone 15, and iPhone 15 Pro leading the pack. The pricier Pro line of iPhones accounted for half of all iPhone sales, compared to just 24% in 2023. Samsung’s Galaxy S24 Ultra also performed well, showcasing the competition between the two tech giants.
Apple’s strategy of offering larger smartphones seems to be paying off, as the bigger Max models are also gaining popularity. This shift towards larger devices indicates a trend towards consumer preference for bigger screens. Samsung’s success with the Galaxy S24 series can be attributed to its early introduction of generative AI (GenAI) technology, which enhances user experience and allows for unique content creation.
However, the trend towards more expensive and feature-rich smartphones also means that people are holding onto their devices for longer periods, leading to slower upgrade cycles. This poses a challenge for manufacturers like Apple and Samsung, as fewer sales per year may offset the higher cost per unit. Despite this, the global smartphone market saw a 6% growth in the first quarter of 2024, with nearly 300 million units shipped, resulting in the highest smartphone revenue of any first quarter in history.
While high-end smartphones continue to dominate the market, there is still a demand for lower-end and more affordable devices. Apple’s iPhone 14, a more budget-friendly option, secured a spot as the fourth best-selling model globally. Samsung’s Galaxy A34, A54, and A15 5G models also made it to the top ten list, alongside their premium S24 and S24 Ultra offerings. As competition intensifies in the smartphone market, manufacturers are exploring new avenues for revenue growth.
Apple is diversifying its revenue streams by focusing on services, which are becoming increasingly valuable to consumers. The company reported $23.9 billion in services revenue in its recent quarterly earnings report, surpassing analysts’ forecasts. However, the flat quarter of $46 billion in revenue from iPhone sales raises concerns, especially with declining sales in the U.S., a traditionally strong market for Apple. As the smartphone market continues to evolve, companies like Apple and Samsung are adapting their strategies to stay competitive and meet changing consumer preferences.
