Samsung outperforms Apple in Q1 2024 smartphone production

Written on 06/16/2024
Taylor Bell

TrendForce released a report on smartphone production in the first quarter of 2024. According to the report, production increased by 18.7% compared to last year, with a total of 296 million smartphones shipped. However, smartphone production in the first quarter of 2024 was still below the pre-pandemic level of over 300 million units.

Smartphone production in the first quarter of 2024 improved 18.7% year-on-year
The report also noted that some brands chose to aggressively produce in the first quarter. This reportedly increased inventory levels in the channel, which must be adjusted first. The report said that production volumes for these brands could fall by 5-10% in the second quarter compared to the first quarter of 2024.

The world's six largest smartphone manufacturers based on production volumes in the first quarter of 2024 were Samsung, Apple, Xiaomi, OPPO, Transsion, and Vivo. These six companies reportedly produced 80% of all smartphones shipped during the period. The ranking by production volumes can be seen in the image below.

Galaxy AI may have helped Samsung surpass its biggest rival
Samsung took the lead with a total of 59.5 million smartphones produced in the first quarter of 2024. The company was followed by Apple, Xiaomi, and Oppo, which produced 47.9 million, 41.1 million, and 33.8 million units, respectively. Samsung's inclusion of Galaxy AI in its S24 series may be one of the main reasons for its success. Notably, Samsung continues to work on adding new features to Galaxy AI, which will reportedly debut in the upcoming Galaxy Z Fold 6.

As Apple resumed smartphone production in the first quarter of 2024, the company suffered a decline in sales in the Chinese market. This is likely due to the rise of Huawei and changing user preferences in the country. The decline has triggered some adjustments within the component supply chain. However, production plans for processor chips have reportedly not changed.

Oppo also includes Realme and OnePlus. Oppo faces significant competition from Honor in its home country. As a result, Oppo's growth in Q1 lagged behind other Android brands. The company intends to maintain production levels from the first quarter.
Transsion, which owns Infinix and Tecno, came in fifth with 29.8 million units. The company reported nearly 50% growth in Q1 this year compared to the same period last year. However, TrendForece's report said that aggressive production in Q1, as well as overlapping competition in the low-end market with Samsung, Xiaomi, and Lenovo, led to inventory growth. Transition production is expected to increase by 15% in the second quarter.

Vivo (which also includes iQOO) shipped a total of 21.7 million units in the first quarter, putting it in sixth or last place.