The global smartphone market performed strongly in the first quarter of 2024, with a year-on-year growth rate of 18.7%, reaching a total shipment volume of 296 million units. This growth was mainly influenced by the low base effect from the same period last year.

However, due to high inflation and geopolitical conflicts, global consumer spending remained relatively conservative. Additionally, active production by some brands in the first quarter led to an accumulation of channel inventory.

Therefore, market research firm TrendForce holds a cautious outlook for the second quarter's production, predicting a decline of 5-10%.

In the first quarter, the top six manufacturers in the global smartphone market—Samsung, Apple, Xiaomi, OPPO, Transsion, and Vivo—collectively accounted for nearly 80% of the market share.

Production data for major manufacturers in the first quarter are as follows:

• Samsung's total production reached 59.5 million units, mainly benefiting from the strong sales of the Galaxy S24 series, with a year-on-year growth rate of 20%. However, production is expected to drop below 55 million units in the second quarter due to weak sales of the A series.
• Apple's total production was 47.9 million units, affected by declining sales in the Chinese market. The second quarter, being an interim period before new product releases, is expected to see a production decrease of about 10%.
• Xiaomi's total production was 41.1 million units, successfully overcoming last year's high inventory issues. After internal policy adjustments, the company has shifted its focus to investing in emerging markets, adopting an optimistic market strategy.
• OPPO's total production was 33.8 million units, impacted by fierce competition in the Chinese market, resulting in a lower year-on-year growth rate compared to other competitors.
• Transsion's total production was 29.8 million units, showing a significant year-on-year growth, continuing the momentum from last year.
• Vivo's total production was 21.7 million units. The second quarter is expected to maintain stable performance, boosted by the flagship X100 series and the 618 promotion.

Regarding the market forecast for the second quarter, besides TrendForce's prediction of a 5-10% decline in production, conservative global consumer spending will also negatively impact smartphone demand.

In terms of brand strategies:

• Xiaomi will continue to actively expand in emerging markets to further increase its market share.
• Apple and Vivo will adopt cautious strategies, with the former in a product iteration period and the latter relying on new product launches and promotional activities to stabilize market performance.

Comprehensive analysis and forecasts indicate that the global smartphone market faces challenges including ongoing high inflation and geopolitical conflicts. Brands need to flexibly adjust their strategies to respond to market changes.

Additionally, effective inventory management will be crucial to avoid production overcapacity issues caused by inventory buildup. Despite these challenges, emerging markets still have growth potential, and brands should increase investment in these markets to capitalize on growth opportunities.