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TrendForce has shared a report about the smartphone production in Q1 2024. The report reveals that the production has seen a significant 18.7% year-on-year growth, with a total smartphone shipment of 296 million units. Although, the smartphone production in Q1 2024 was still below the pre-pandemic levels of over 300 million units.
The smartphone production in Q1 2024 has improved by 18.7% YoY
The report also notes that some brands have opted for aggressive production in the first quarter. It has reportedly resulted in elevated channel inventories that need to be adjusted first. According to the report, the production numbers from those brands in the second quarter could see a decline of 5–10% compared to Q1 2024.
In Q1 2024, the global top six smartphone makers by production number were Samsung, Apple, Xiaomi, OPPO, Transsion, and Vivo. Reportedly, these six companies produced 80% of the total smartphones shipped during the period. You can see the ranking based on the number of units produced in the image below.
Galaxy AI could have helped Samsung to outperform its biggest rival
Samsung produced a total of 59.5 million smartphones in Q1 2024, occupying the first position. The company is followed by Apple, Xiaomi, and Oppo with 47.9 million, 41.1 million, and 33.8 million units of production respectively. Samsung’s addition of Galaxy AI in the S24 series could be one of the key reasons behind the success. Notably, Samsung is continuing to work on adding new features to Galaxy AI, which will reportedly debut with the upcoming Galaxy Z Fold 6.
Coming back to smartphone production in Q1 2024, Apple has faced a decline in sales in the Chinese market. This is expected to be due to the emergence of Huawei and the shift in user preference in the country. This decline has prompted several adjustments within the component supply chain. However, the production plans for processor chips reportedly remain unchanged.
Oppo also includes Realme and OnePlus. Oppo has faced significant competition in its home country from Honor. As a result, Oppo’s YoY growth in the first quarter lagged behind other Android brands. The company aims to maintain its production level from the first quarter.
Transsion, the owner of both Infinix and Tecno, came in the 5th position with 29.8 million units. The company has seen nearly 50% YoY growth into the first quarter of this year. However, TrendForece’s report reveals that the aggressive production in Q1, coupled with the overlapping low-end market competition with Samsung, Xiaomi, and Lenovo has led to inventory accumulation. A 15% decline in Transsion’s production for the second quarter is predicted.
Vivo (which also includes iQOO) came in the sixth or last position with a total of 21.7 million units shipped in the first quarter.