Just like in the past few years, Samsung leads the pack in smartphone sales for the first quarter of 2024, but this has little to do with the introduction of artificial intelligence or any weakness in Apple's iPhone. Canalys, the channel tracking firm, has collected and released the latest smartphone sales data for this quarter, with Samsung taking the top spot. The good news for the overall market is that global smartphone sales have increased by 10% year-on-year, mainly driven by expansion in emerging markets, with over 296 million smartphones sold worldwide this quarter.
However, the story is more complex than this. In Canalys' press release accompanying the data, analyst Sanyam Chaurasia highlighted two key factors behind Samsung's success. Firstly, the Galaxy S24 was launched a month earlier this quarter compared to its predecessor, leading to a 35% increase in device shipments for the company compared to the previous year. This early launch, spanning a full month, is a notable factor.
Secondly, the analyst also pointed out the shift towards "AI-driven innovation" in the market, a sentiment echoed by Wall Street analysts. While Samsung's quarterly sales growth appears linear due to the extended sales period this quarter, the accuracy of this assessment remains to be seen.
Apple's sales trajectory for 2023-2024 closely mirrors that of 2020-2021, with higher peaks during the holiday quarter. Given the significant variations in iPhone release and launch timings over the past few years, making direct comparisons is challenging.
Global smartphone shipment market sales volume, data source: Canalys
Other sources also express concerns about iPhone sales this quarter, criticizing Apple's performance from various angles. Luca Maestri and Tim Cook warned in the January earnings report that this quarter might be weak.
However, Samsung leading in smartphone sales in the first quarter does not necessarily indicate a trend. As shown by Canalys data, the ebb and flow between Apple and Samsung has been relatively stable over the years.
Apple typically takes the crown in the fall with iPhone releases and usually dominates the year. Subsequently, Samsung regains ground by releasing flagship Galaxy series products and a large number of smartphones priced below $200.
Samsung is also growing steadily, but not solely due to smartphones. With increasing demand for memory and overall rise in commodity prices, the company's chip business is booming.
As of April 30, Samsung's mobile device business reported a first-quarter operating profit of 3.51 trillion Korean won (approximately $25 billion), down from 3.94 trillion Korean won (about $28 billion) in the same period last year. This marks a significant decrease compared to the 3.94 trillion Korean won (28 billion USD) from the same period last year.
Regardless of the speculation about iPhone weakness and predictable sales cycles, answers will be revealed when Apple releases its quarterly earnings report on April 3. If it's about advancements in artificial intelligence, although unproven by these data, Apple is expected to address it at WWDC in June.
