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An Introduction

Phone companies are investing significantly in AI research and development and are increasingly integrating AI technologies into their devices to enhance user experiences, improve functionality, and stay competitive in the rapidly evolving tech landscape.

According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker , global smartphone shipments increased 7.8% in the first quarter of 2024 (1Q24) which marks the third consecutive quarter of shipment growth. As the AI race continues, users can expect smartphones to become even more intelligent, adaptive, and capable of understanding and catering to individual preferences and, according to research firm Canalys, 5% of all smartphones shipped globally in 2024, or 60 million devices, will be AI-capable. These manufacturers are actively participating in the AI race.

There are over 100 smartphone manufacturers worldwide (see here) of which only 8 trade on U.S. stock exchanges and 5 of those 8 represent 56.2% (source) of the global market. Given the fact that a number of the companies listed are not pure-play smartphone manufacturers the performance of their stock prices are not provided to prevent an apples to oranges comparison.
 

Publicly-Traded Smartphone Companies

The above mentioned 5 smartphone makers are listed below in descending order as to their global market share along with their market capitalization, a description of their operations and any recent news, analysis or commentary where available.

1. Samsung Electronics (SSNLF): Global market share: 20.8%
   • the world’s largest memory chip and smartphone maker, is launching its Galaxy AI S24 series this month as an "AI phone" (see here), with AI features such as translating phone calls in real-time, converting text into images and editing them.
   • Market capitalization: $394B
   • Recent news, analysis or commentary:
     • Samsung Overtakes Apple as World's Top Smartphone Provider
2. Apple (AAPL): Global market share: 17.3%
   • is developing a slew of AI upgrades (see here) for its family of products, including an effort to bring AI to the next major iPhone update, likely to be called iOS 18.
   • Market capitalization: $2,670B
   • Recent news, analysis or commentary:
     • Apple Dethroned by Samsung as Smartphone Market Recovers
3. Xiaomi (XIACF): Global market share: 14.1%
   • AI initiatives include the voice-controlled virtual assistant Xiao AI, AI camera features in smartphones, and AI-driven software optimizations. These efforts lead to voice-controlled interactions with devices, AI-powered photography enhancements, and improved system performance through AI algorithms.
   • Market capitalization: $53B
   • Recent news, analysis or commentary:
     • Elliptic Labs Signs Contract with Xiaomi for Several Smartphones
     • Xiaomi Unveils Revolutionary SU7 Electric Vehicle
4. Lenovo Group (LNVGY): 4% global market share (includes Motorola)
   • is developing an AI assistant for PCs (see here) and phones (see here) that learns from a user's behavior and can accomplish tasks on one's behalf, such as writing messages and scheduling tasks.
   • Market capitalization: $13.6B
   • Recent news, analysis or commentary:
     • Baidu partners with Lenovo in third China AI smartphone deal
5. Motorola Solutions (MSI):
   • In recent years, the company has sought to position its brand as a higher-end smartphone player to compete with the likes of Samsung and Apple and rebooted the iconic Motorola Razr in 2020 as a foldable smartphone. Currently Motorola is the third biggest smartphone vendor by market share in the U.S. and is the second-largest player In Latin America.
   • Market capitalization: $56.4B
   • Recent news, analysis or commentary:
     • Motorola smartphone brand will be the third-biggest globally in 3 years

The following 3 lessor U.S. stock exchange traded smartphone makers account for only 1.59% of the global market share, namely:

1. Alphabet (GOOGL): Global market share: 0.75%
   • has launched the “Pixel 8” smartphone (see here) which integrates generative AI, building on the success of Google's ChatGT and Bart AI technologies.
   • Market capitalization: $1,930B
   • Recent news, analysis or commentary:
     • Alphabet (GOOGL) Boosts Its Smartphone Offerings With Pixel 8
2. Nokia Oyj (NOK): Global market share: 0.49%
   • Nokia embraces AI with AI-powered camera features in its smartphones and the integration of AI algorithms for software enhancements. These initiatives lead to enhanced camera capabilities through AI scene recognition and AI-assisted system optimizations.
   • Market capitalization: $18.6B
   • Recent news, analysis or commentary: None
3. Sony Group (SONY): Global market share: 0.35%
   • focuses on AI-driven camera technologies and introduces Xperia AI, its AI platform for Xperia smartphones. These advancements result in advanced camera features such as object recognition and AI-assisted image and video processing.
   • Market capitalization: $101B
   • Recent news, analysis or commentary: None
      

The Global Market Share Of the Remaining Smartphone Makers

The top 5 Chinese smartphone manufactures (Transsion, Oppo, Huawei, Vivo and Realme) account for 29.1% of the global market share, while the remaining 92 companies account for the remaining 13.1% of the global market. 
 

In Summary

AI is shaping the future of smartphones whether it’s capturing stunning photos or predicting our next word. Enjoy!

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