News: Markets
11 March 2024
Quarterly smartphone production jumps 12.1% in Q4/2023
Third-quarter 2023 saw a significant rebound in global smartphone production, marking the end of an eight-quarter slump, according to market research firm TrendForce. In a strategic year-end surge, brands amped up production to capture more market share, propelling fourth-quarter smartphone output up 12.1% to 337 million units. Despite this final-quarter growth, 2023 rounded off with a slight 2.1% dip in annual production — totaling 1.166 billion units.
The outlook for 2024 hints at a brighter future, free from the inventory pressures of the previous year, says TrendForce. However, the pace of market recovery remains under scrutiny. The spotlight is on artificial intelligence (AI) applications, with industry giants joining forces to usher in the next wave of AI-powered smartphones.
Brands ramp up production targets in response to year-end shopping season and market share consolidation
Thanks to the buzz around its iPhone 15 series, Apple stole the show in Q4/2023 with a staggering 58.6% production surge, cementing its lead with about 78.5 million units produced. But, despite leading the pack, Apple experienced a 4.2% decline in annual production, dropping to 223 million units and securing second place. With Huawei’s resurgence, Apple is expected to encounter heightened competition in China’s premium market segment, where both brands vie for the same high-end consumer base.
Samsung navigated through a transitional phase in Q4/2023, seeing an 11% decline in production to about 53.5 million units, yet still holding firm at second place for the quarter. Meanwhile, its yearly production took an 11.3% hit, slipping to 229 million units and narrowing its lead over Apple to a mere 0.5%.
Xiaomi (including Xiaomi, Redmi, and POCO) slightly grew its Q4 production by 0.7%, reaching 43.1 million units and maintaining third position despite a 6.1% annual decrease to 147 million units. Oppo (including Oppo, Realme, and OnePlus) followed closely with a 3.4% quarterly increase, rounding off the year with a 4.1% dip to 139 million units. Vivo (including Vivo and iQoo) managed 4.1% growth in Q4, ending full-year 2023 on a 2.9% decrease to 93.5 million units and sliding to sixth place in global production. Smartphone brands with a significant stake in the Chinese market are bracing for heightened competition amid a downturn in China’s consumer spending and Huawei’s aggressive market return.
Transsion climbs to fifth place globally as it expands in India and South America
Standout performer Transsion, (including TECNO, Infinix, and itel) not only achieved robust 11.3% growth in Q4/2023 but also made history by breaking the 90 million annual production barrier — marking a 46.3% year-on-year increase. This propelled Transsion to fifth place globally, which TrendForce attributes to the replenishment of channel inventory, moving beyond entry-level products to more diverse offerings, and successful expansion into new markets such as India and South America.
Smartphone production rebounds by 13% in Q3, after eight quarters of year-on-year declines
Smartphone production falls 6.6% year-on-year to 272 million in Q2; first-half 2023 down 13.3%
