Highlights

• Galaxy S24 shipments grew at a double-digit rate in Q2
• Revenue from S24 series also saw double-digit growth
• GalaxyAI features, like Live Translate, boosted sales
• Samsung remains the top global smartphone vendor

Samsung has reported impressive results for its Galaxy S24 series in the second quarter of 2024.

The company’s latest financial report reveals that shipments of the Galaxy S24 line grew at a double-digit pace compared to the Galaxy S23 series during the same period last year.

This growth trend extends to the first half of the year as well.

“In the second half of 2024, Apple and Samsung will focus on solidifying their long-term strategies in mature markets, while other brands will hope to boost sales in emerging markets, having stocked channels in anticipation of higher operating costs,” said Canalys Senior Analyst Sanyam Chaurasia. “In Q2, Europe and North America saw significant volume increases as vendors proactively stockpiled inventory for upcoming holiday sales seasons. Samsung will inevitably focus on integrating its Galaxy ecosystem to create strong value propositions for consumers via its flagship offerings with exclusive GenAI features. Apple will look to accelerate replacement demand in these markets via its AI strategy, with hybrid models, enhanced privacy and personalized Siri features. Meanwhile, Greater China’s growth trajectory now mirrors global markets, driven by improved macroeconomic conditions and renewed business confidence among channel and smartphone brands. In the domestic market, local Chinese brands will use GenAI features to stand out in the premium segment, aiming to capture rising high-end spending and apply successful strategies worldwide.

“All the major regions grew in Q2, but maintaining competitive products will become increasingly challenging,” said Canalys Senior Analyst Toby Zhu. “Since the end of Q1, vendors have consumed the remaining stocks of low-cost components. This will pose a challenge for mass-market brands as demand for competitive specifications, such as improved storage, displays and cameras, remains high. To navigate this, emerging brands should refine regional strategies and optimize retail investment to balance market expansion under high operational costs. Effective channel inventory management is vital to prevent disruptions in pricing and operational losses. Following a prolonged market downturn, maintaining operational health remains a top priority for brands and channels.”

Revenue Boost for Samsung

It’s not just shipments that have seen an increase.

The revenue generated by the new phones also grew at a double-digit rate compared to last year’s flagship models.

This growth was observed both in Q2 and throughout the first six months of 2024.

Samsung attributes much of this success to the new GalaxyAI features introduced with the S24 series.

These AI-powered capabilities seem to have resonated with consumers, driving increased interest and sales.

One standout feature is Live Translate, which allows users to have phone conversations with people speaking different languages by providing real-time translation on both ends of the call.

Strong Performance Continues from Q1

This positive trend isn’t new for the S24 series.

Samsung had already reported strong results for these devices in the first quarter of 2024.

The lineup, which includes the Galaxy S24, Galaxy S24+, and Galaxy S24 Ultra, has been consistently outperforming its predecessors since launch.

While the S24 series is performing well, it’s important to look at the broader smartphone market context.

According to Canalys, Samsung remains the top smartphone vendor globally, shipping 53.5 million devices in Q2 2024.

This gives the company a 19% market share.

However, Samsung’s overall growth has slowed.

The company’s shipments only increased by 1% compared to the same quarter last year, and its market share has slightly decreased from 21% a year ago.

Competition Remains Fierce

Despite the S24’s success, Samsung faces stiff competition.

Apple holds the second spot with 45.6 million shipments and a 16% market share.

Xiaomi is close behind in third place, showing the strongest growth among the top five vendors with a 27% increase in shipments year-over-year.

The success of the Galaxy S24 series highlights the importance of innovation in the smartphone market.

Features like GalaxyAI appear to be giving Samsung an edge, attracting consumers looking for new and useful capabilities in their devices.

It will be interesting to see if the Galaxy S24 series can maintain this momentum.

With the smartphone market expected to show mid-single digit growth for the entire year, Samsung’s ability to continue innovating and attracting upgrade buyers will be crucial.

The strong performance of the S24 line is a positive sign for Samsung, especially in a market where overall growth is slowing.

“Despite seasonal demand in the second half of the year, the smartphone market is unlikely to see double-digit growth in full-year 2024,” said Zhu. “In the short term, the volume driver segment is facing operational challenges, but smartphone vendors should enhance their competitiveness in the latter half of the year via targeted regional product planning. Notably, consumers and channel partners have adapted to promotions and cost-effective products in the fragile economic environment of the past two years. Overall, the smartphone market is set to grow in the mid-single digits in 2024, driven by recovering inventory levels, eased import restrictions and a better economic climate. In 2025, with consumer demand remaining uncertain, especially in mature markets, vendors should focus on delivering innovative smartphone experiences to attract upgrade buyers, build a distinctive brand image and strengthen local operations to seize emerging opportunities.”

FAQs

How did the Samsung Galaxy S24 series perform in Q2 2024?

The Samsung Galaxy S24 series saw double-digit growth in shipments and revenue compared to the Galaxy S23 series during the same period last year.

What features contributed to the success of the Galaxy S24 series?

The new GalaxyAI features, particularly Live Translate, significantly boosted consumer interest and sales for the Galaxy S24 series.

How does Samsung’s market position compare to its competitors?

Samsung remains the top global smartphone vendor with a 19% market share, shipping 53.5 million devices in Q2 2024, ahead of Apple and Xiaomi.

What is Live Translate, and how does it benefit users?

Live Translate is a GalaxyAI feature that provides real-time translation during phone conversations, allowing users to communicate seamlessly in different languages.

Is Samsung’s overall growth in the smartphone market slowing?

Despite the strong performance of the Galaxy S24 series, Samsung’s overall growth in the smartphone market has slowed, with only a 1% increase in shipments compared to the same quarter last year.

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