Despite global challenges in the technology sector, including semiconductor shortages and economic uncertainty, Apple has achieved significant gains in smartphone market share over the past year, while competitors struggle to keep pace. Apple's growth is driven by its focus on innovative devices tailored to diverse markets.
Data from Tocloset shows that Apple's global smartphone market share surged 20% YoY, increasing from 15% in Q1 2021 to 18% in Q1 2022. Samsung, the closest competitor, also saw growth but at a lower rate of 9.09%. Despite Apple's impressive growth, Samsung still leads the market with a 24% share as of Q1 2022.
In contrast, other manufacturers like Oppo and Vivo experienced a 20% drop in market share, while Xiaomi's share decreased by 7.14%. Other brands saw their market presence decline by 3.57%.
The market share data reflects sales from shipment estimates released in April 2022, as reported by technology market analyst firm Canalys.
Drivers of Apple’s Market Share Growth
Apple's market share growth is likely fueled by factors such as rising disposable incomes, the expansion of telecom infrastructure, the introduction of budget-friendly smartphones, and the increase in new smartphone launches.
Despite Apple's growth, the smartphone industry still faces challenges like component shortages, price inflation, and ongoing economic uncertainty following the pandemic recovery.
Interestingly, Apple is gaining market share despite its smartphones being relatively expensive compared to competitors. This can be attributed to Apple's loyal consumer base, which is drawn to the regular new features and innovative designs of Apple devices.
Apple has also expanded its reach by capitalizing on the growing used smartphone market, particularly in emerging markets.
Although Apple trails behind Samsung in overall market share, its growth is a positive indicator, reflecting the success of its strategy to diversify the iPhone and iPad lineup.
Apple continues to benefit significantly from specific markets like the United States, where it maintains a strong lead, driven by increased discretionary spending and the introduction of 5G technology in lower-priced devices.
Additionally, the iPhone 13 series has contributed to Apple's resurgence in the Chinese market, thanks to its relatively lower price points. The iPhone SE also stands out as a key mid-range smartphone driving Apple's market share growth.
Samsung Retains Top Spot Despite Slowed Growth
Samsung, meanwhile, has managed to retain its market dominance amid economic uncertainty by keeping the prices of its Galaxy premium phones steady, catering to a broader audience.
Samsung's strategy includes focusing on segmented market parts, such as ramping up production of the A series phones targeting mid-to-low-end markets.
However, Chinese manufacturers like Xiaomi, Oppo, and Vivo continue to struggle despite expanding their distribution networks in key regions such as the Middle East, Africa, Latin America, and Europe. These companies aim to capture the market share left by LG and Huawei.
Overall, most manufacturers have seen a decline in market share due to various supply and demand factors. Constraints have led to secondary effects like longer device replacement cycles, especially in markets like China, where delays in purchasing newly released smartphones pose challenges for brands trying to maintain market share.
While most manufacturers face semiconductor shortages, their strategies to adapt to these challenges will significantly impact their market share. Some companies are taking steps to mitigate these issues by establishing semiconductor manufacturing facilities.