Samsung Electronics has regained the top spot in global smartphone sales from Apple after five months, thanks to the successful launch of the world’s first AI phone, the Galaxy S24 series, which received favorable reviews in the North American market. The latest increase in sales volumes of new foldable smartphones, such as the Galaxy Z Fold and Flip 5, also contributed to regaining the number one position.
According to market research firms Counterpoint and Hana Financial Investment on March 31, Samsung’s smartphone sales volume reached 19.69 million units in February, securing a 20% market share. Apple sold 17.41 million units, holding an 18% share. This is the first time Samsung has reclaimed the global lead since September last year when Samsung had a 20% market share and Apple 19%.
Samsung maintained its lead in Europe with a 34% market share. It also performed well in the United States, Apple’s stronghold, where Samsung’s market share jumped to 36% in February from 20% in January, effectively gaining the share that Apple lost (from 64% to 48%).
The primary contributor to Samsung reclaiming the top spot was the Galaxy S24 series, launched in January, selling 6.53 million units by the end of February. Although this is 10% less than its predecessor, the Galaxy S23, which sold 7.24 million units by the end of February 2023, the Galaxy S24 series launched about ten days later than its predecessor, making its performance noteworthy.
The surge in Samsung’s market share in the United States, a battleground for premium phones, is attributed to the Galaxy S24 series. Fully 52% of Samsung’s smartphone sales in the U.S. in February were from the Galaxy S24 series. The industry credits the phone’s AI features, such as real-time translation of 13 languages during calls, automatic note organization, summary, translation, and the Circle to Search function that initiates a search by drawing a circle on the screen, for winning over discerning American consumers.
The response to Samsung’s foldable phones, another mainstay of its smartphone lineup, has also been positive. The Z5 series sold a total of 7.39 million units (Flip 4.76 million, Fold 2.63 million) in the six months up to the end of February, slightly surpassing the Z4 series (Flip 4.55 million, Fold 2.8 million), which sold a total of 7.35 million units. A Samsung Electronics official stated that the increase in sales of premium phones, which are more profitable, would help improve performance.
Samsung plans to accelerate its strategy to dominate the premium phone market by taking advantage of a lawsuit filed by the U.S. Department of Justice against Apple for alleged “antitrust violations.” According to the Department of Justice, Apple has intentionally slowed down the transmission speed of texts and videos from iPhones to Android phones and blocked compatibility between iPhones and Samsung services/products like Samsung Pay and Galaxy Watch. If found guilty, Apple could face astronomical fines and other corrective measures.
Samsung plans to continue its offensive by launching new foldable products in the second half of the year. Since March 28, software upgrades have been providing AI features to last year’s premium Galaxy products, including the Galaxy S23 series and Galaxy Z5. Samsung intends to intensify its pressure on Apple in the crucial North American premium phone market through price discounts and other promotions.
