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Updated December 22nd, 2023 at 09:56 IST

Samsung aims to sell over 24 crore units by end of 2024

A bigger volume in orders from Chinese Android smartphone makers like Oppo and Honor indicates the industry’s foray out of a slump which lasted over a year.

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Korean-origin multinational smartphone and consumer technology major Samsung Electronics is gearing up for a bigger and better 2024, with an aim to sell over 240 million (24 crore) units by the end of next year.

A bigger volume in orders from Chinese Android smartphone makers like Oppo and Honor indicates the industry’s foray out of a slump which lasted over a year.

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Samsung’s increase in unit sales is planned and ranges from around 6-9 per cent, with bigger rises expected in more premium segments, according to a report.

The target is an improvement from 2023, as per data from Counterpoint Research which showed smartphone shipments’ estimated fall to their lowest point in a decade the previous year after falling in 2022 as well.

Samsung, the world's biggest smartphone maker by shipment size, expects to make about 8 per cent more of flagship foldable smartphones, the Galaxy Z series in 2024, as compared to the same period a year ago.

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The Korean consumer tech company foresees its more affordable Galaxy A and M lines growing more than 10 per cent, according to Samsung forecasts accessed by Nikkei Asia.

Multiple Chinese smartphone makers also shared robust forecasts with suppliers, the report added.

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"We've seen all Android phone makers become more confident about 2024 after such a long correction period, which has lasted for more than a year," an executive at Samsung and other Android phone maker supplier told the Japanese publication.

Samsung is adding orders for 2024 because it is still the leader of the handset market and its outlook means a lot for the industry wide recovery, the executive added.

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Oppo, the world's second-largest Android phone maker after Samsung, plans to make 150 million units in 2024, up 6 per cent from 141 million in the same period the previous year.

Chinese peer Honor has sought more support from suppliers for next year as it continues its overseas expansion push, sources told Nikkei Asia.

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Huawei Technologies, which started supplying 5G smartphones again, plans to build up to 70 million handsets for 2024, according to a previous report.

The company is open to use 4G and 5G chipsets from outside suppliers to achieve the 7-crore target.

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Huawei's comeback is a “shot in the arm” for the component supplier of the smartphone maker. The company has been giving healthy orders since summer and the momentum is expected throughout next year,  an executive at the component supplier said.

The facility expanded capacity for Huawei before the smartphone maker was blacklisted by Washington.

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An executive from another component supplier had a cautious outlook when he said, "We are not too confident yet to call it a complete recovery from the yearslong slump, but we are definitely seeing restocking demand from other phone makers at least until the Chinese Lunar New Year holidays."

His company, which supplies Samsung, Huawei, Xiaomi, Oppo and Vivo, started seeing growing order momentum from Android smartphone maker peers of Huawei after it launched its Mate 60 Pro.

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The buzz over generative AI -- the technology behind ChatGPT -- is adding some fuel to hopes of a smartphone recovery, though analysts do not expect the impact to be immediate.

Counterpoint Research predicts generative AI-capable smartphones will account for about 4 per cent of all handset shipments for 2023, doubling to about 8 per cent next year. It predicts that penetration rate could reach 40 per cent by 2027.

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Honor told Nikkei Asia it has achieved nearly 200 per cent sales growth in overseas markets for 2023 and believes its overall competitiveness and market position have risen greatly.

(With Reuters Inputs)

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Published December 22nd, 2023 at 09:56 IST

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