Preliminary data from IDC released on Monday showed that global smartphone shipments increased by 6.5% in the second quarter, driven by Samsung Electronics and Apple. However, a full recovery in demand has not yet materialized, as challenges persist in some markets.

Why It's Important:

Global smartphone shipments have grown for the fourth consecutive quarter, according to the research firm. Smartphone manufacturers are increasingly leveraging artificial intelligence to attract price-conscious consumers and expand their market share.

Key Quotes:

"There is a lot of excitement in the smartphone market due to higher average selling prices and the buzz around generative AI smartphones, which are expected to capture 19% of the market this year," said Nabila Popal, research director with IDC's Worldwide Tracker team.

"As Apple and Samsung continue to dominate the premium market, benefiting from the ongoing premiumization trend, many leading Chinese OEMs are increasing shipments at the low end to capture volume share amid weak demand," Popal added. "This has resulted in challenges for the mid-range device segment."

By the Numbers:

Samsung held the top position with an 18.9% share of shipments in the second quarter, followed by Apple with a 15.8% share and Xiaomi with 14.8%.