On January 16, Canalys issued a document stating that in the fourth quarter of 2023, the global smartphone market will grow by 8% to 0.32 billion units. It ended seven consecutive quarters of decline. After the launch of the new iPhone, Apple (AAPL.US) led the world with 24% market share in the fourth quarter. Samsung is in second place with a market share of 17%. Xiaomi (01810) is firmly in third place, with a year-on-year growth of more than 20% in the fourth quarter. Thanks to the recovery of emerging markets, Transsion (688036.SH) was promoted to fourth place for the first time. Vivo ranks among the top five with a market share of 7%.

For the full year 2023, global smartphone shipments totaled 1.1 billion units, down 4% year-over-year. Apple slightly surpassed Samsung for the first time, becoming the manufacturer with the highest shipments in 2023, but both have a market share of 20%. Xiaomi, OPPO and Transsion account for 13%, 9% and 8% of the market respectively.

Canalys senior analyst Zhu Jiatao (Toby Zhu) said, "thanks to the mild market demand in the holiday season, the market is developing in a positive direction." Low-and mid-priced products are the main driver of this wave of recovery, along with a rebound in demand in emerging markets such as Middle East Africa, Asia Pacific and Latin America. At the same time, with the further easing of inventory pressure and global inflation, manufacturers can focus on product innovation and long-term development strategies to lay a solid foundation for 2024. Google Pixel and several Chinese manufacturers such as Glory, OPPO, vivo and Xiaomi have all launched Android flagship products that play the trend of end-side AI.

Amber Liu, Canalys research manager, commented, "Due to the decline in the smartphone market in the fourth quarter, the top two manufacturers are eagerly looking for new growth drivers. In 2023, Samsung will focus on the mid-to-high-end market to ensure profitability, but it has lost its share of the low-end market and also lost its leading position in the global market. Its products launched in 2024, especially the high-end market around the equipment and functions of end-side AI, will help it become an innovation leader again in 2024."

On the other hand, thanks to the continued solid demand in the high-end market, Apple has shown tenacious vitality in the past two years. The improvement of the positioning of the iPhone 15 series has pointed out the direction for Apple's future product strategy to cover a wider range of consumer groups. However, with demand for high-end replacement in other major markets such as North America and Europe leveling off, Huawei's re-emergence in mainland China and local competition will pose a challenge to Apple's continued growth. In the new year, Apple must seek new market growth points and ecosystem advantages to revive the iPhone business.