Business
Samsung will increase smartphone JDM shipments to 70 million units, to beat Apple
According to the latest info, Samsung has increased the size of its JDM to 70 million units for Chinese companies to produce smartphones, 20 million units more than actually expected. This is in contrast to Apple, which boosted production by 10 million units in the top iPhone 13 series in the off-season in Q2.
As per the report, Samsung has increased the number of smartphones jointly manufactured by WingTech and Huaqin in China by 20 million units. The company has reportedly switched to JDM for the mid-to-end smartphone Galaxy A04 and its derivative model Galaxy A04s originally planned to be self-produced.
Samsung increased smartphone JDM shipments to 70m units
In the original business plan, Samsung plans to produce 8.1 million units of the Galaxy A04 internally, up from 3.1 million units in the third quarter and 5 million units in the fourth quarter.
The internal production of the Galaxy A04s is projected at 12.5 million units, including 5.5 million units in the third quarter and 7 million units in the fourth quarter. The total of the two models is 20.6 million units. As Samsung moved 20.6 million units from its production to JDM, total JDM volumes increased from 50 million units to 70 million units.
The company initially planned production for four smartphones – the Galaxy A03 (15.3M units), A03S (6.3M units), A03 Core (18.7M units), and A22 5G (8.7M units). If you add 20.6 million units converted to JDM to the total of 49 million units in the four models, 69.6M units are close to 70M units.
As Samsung increased its JDM shipments, Apple increased its production plan for the iPhone 13 series top lineup released last year by 10 million units in the second quarter of the off-season. A significant increase in Apple’s production plans for its Pro lineup in the second quarter, which is off-season, is said to have led to strong sales of the iPhone 13 series.
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Samsung ranked first in market share in the global smartphone market in Q3, 2023. TrendForce report says that Samsung led the global Q3 smartphone market, recording a market share of 19.5%.
Overall production in the third quarter increased by 11.5% compared to the previous quarter to 60.1 million units. During the same period, Apple’s production increased by 17.9% to 49.5 million, thanks to iPhone 15.
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Third place was taken by Xiaomi (13.9%), followed by Oppo (12.6%) and Transion (8.6%). 6th place is Vivo (8%). Meanwhile, global smartphone production reached 308 million units, a 13% increase compared to the previous quarter and a 6.4% increase from the previous year.
Huawei’s re-entry into the flagship smartphone market targeting Apple has had a significant impact in China. Huawei is aiming to expand its high-end flagship series, focusing on the Chinese domestic market next year, so Apple “We plan to attack directly”.
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In Q3 2023, Samsung and Apple’s market share slightly declined, while an underdog Chinese phone brand appeared on the top 5 chart. In a recent development, Canalys published market research data for the third quarter, revealing Tanssion as the fifth best-seller globally.
According to the info, Samsung and Apple lead total sales with 20% and 17% market share, yet both have fallen from their 22% and 18% levels in 2022. However, Tanssion, the maker of Tecno, Itel, and Infinix phones, climbed from 6% global market share last year to 9% in 2023, a 50% jump.
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Apart from this, Xiaomi matched last year’s share only by “recovering” from a terrible first half of 2023. At the same time, OPPO has fallen steadily over the past two years, while fellow BBK brand vivo lost the top-5 slot it’s owned for years.
Overall, the global smartphone market underwent a slight drop of 1% in Q3 2023. Bolstered by regional recoveries and new product upgrade demand, the smartphone market recorded a double-digit sequential growth in Q3, ahead of the sales seasons.
Recently, research agency Counterpoint Research published their latest analysis. The report reveals that Samsung continued its leadership in the third quarter of 2023, while Apple remained in the second spot. However, both OEMs faced a decline of 1 percent year over year.
According to CR, slower consumer demand is the main factor in the dwindling sales. The market did see a slight 2 percent growth in Q3 compared to Q2, likely driven by last month’s iPhone 15 series launch. Samsung secured 20 percent market share, while Apple grabbed 16 percent sales.
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The Galaxy A-series was the key driver for the South Korean smartphone maker. Apple came in second with 16 percent of the market while Xiaomi rounded out the top three with its 12 percent share. Oppo (10 percent) and vivo (8 percent) were the remaining brands in the top five charts.
The newly released iPhone 15 series will help Apple score a lead over Samsung in the fourth quarter of the year. The results will arrive by early next year, and it’s expected that the US phone maker could surpass Samsung. Major camera upgrades and USB-C helped Apple register strong sales.