For the first time in 12 years, Apple has surpassed Samsung as the world’s leading smartphone seller, according to a new report from International Data Corp (IDC). The iPhone maker captured a 20% market share in 2023, while Samsung slipped to 19.4%.

The other three spots in the top five were occupied by Chinese brands Xiaomi, Oppo and Transsion.

The report reveals that 2023 was a challenging year for the smartphone industry, as the global market shrank by 3.2% to 1.17 billion units – the lowest level in a decade. The main factors behind this decline were the high inflation and economic uncertainties that dampened consumer demand and spending on smartphone upgrades.

However, not all smartphone vendors suffered the same fate. Apple and Transsion, the company behind the popular Tecno, Infinix and itel brands in Africa, were the only ones to register positive growth in 2023. Apple’s shipments increased by 3.7%, while Transsion’s soared by 30.8%.

IDC’s research director Nabila Popal attributed Apple’s success to its premium devices, which accounted for over 20% of the market. She also credited the company’s aggressive trade-in offers and interest-free financing plans, which made the iPhones more affordable and attractive to consumers.

On the other hand, Samsung faced a tough competition from the low-end Android players, especially in the emerging markets. The Korean giant lost 13.6% of its shipments in 2023, as it focused on the mid- to high-end segment for profitability but failed to retain its share in the low-end segment.

According to Reuters, Canalys’ analyst Amber Liu said that Samsung needed to improve its product portfolio and marketing strategy to regain its lost ground.

Apple’s dominance in the smartphone market, however, is not without challenges. The company is facing a strong pressure in China, where Huawei is making a comeback after the US sanctions were lifted, and where budget brands like Xiaomi and Oppo are offering cheaper alternatives. To cope with this situation, Apple is offering discounts of up to 5% on some of its models in China, hoping to lure more customers.

Another challenge for Apple is the rising competition from Microsoft, which overtook Apple as the world’s most valuable public company on Friday. The software giant’s market capitalization reached $2.9 trillion, surpassing Apple’s $2.8 trillion. The reason behind this shift was the growing concern among investors over the demand for Apple’s high-end gadgets, especially the iPhones, which account for more than half of its revenue.

The smartphone market is constantly changing and evolving, and the vendors need to adapt and innovate to stay ahead of the game. Apple has proven its ability to do so in 2023, but it remains to be seen if it can maintain its lead in 2024 and beyond.

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