Apple LOSES its top phone maker spot to Samsung - as struggling tech giant urgently looks to find its 'next big thing'

Apple has lost its spot as the largest smartphone seller in the world after iPhone shipments dropped about 10 percent in the first three months of the year.

iPhone sales were hit by increased competition from rival Android smartphone makers like Samsung, which took back the largest market share after losing it last year.

Samsung - which launched its flagship Galaxy S24 this year - sold some 20.8 percent of the total 289.4 million units shipped globally between January and March, according to data from intelligence firm International Data Corporation (IDC). 

Apple shares were down less than 1 percent when markets opened on Monday morning. 

It comes after the tech giant scrapped its decade-long plan to create its own electric vehicle and is now said to be experimenting with a personal robot device as insiders say they are grappling to find its 'next big thing' to drive sales.

Samsung sold some 20.8 percent of the total 289.4 million units shipped globally between January and March. Source: International Data Corporation

Apple became the best-selling smartphone maker last year after the release of its iPhone 15 but swiftly lost its crown

Chinese brands like Huawei have gained a bigger share of the iPhone market, IDC data shows. Xiaomi, one of China's top smartphone makers, took the third position with a market share of 14.1 percent - selling 50.1 million units.

Apple became the best-selling phone maker in the world in 2023 thanks to strong sales performance in December after the release of the iPhone 15. 

But in the first quarter of this year, Apple shipped 50.1 million iPhones, down from 55.4 million units over the same period last year, according to IDC.

That 9.6 percent year-on-year drop is the steepest for Apple since Covid lockdowns disrupted supply chains in 2022.

The drop is fueled by problems it's facing in China, its third biggest market.

Some Chinese companies and government agencies have banned the use of foreign phones.

The measure mirrors the US government's own restrictions on Chinese apps on security grounds.

'The smartphone market is emerging from the turbulence of the last two years both stronger and changed,' said Nabila Popal, research director at IDC.

'While Apple has been super resilient and seen a lot of growth in shipments and share over the last few years, it will be a challenge for it to maintain the pace of growth and the peak share it saw in 2023.

'As the market recovers further in 2024, IDC expects Android to grow much faster than Apple.'

Apple in June will hold its Worldwide Developers Conference (WWDC), where it will highlight updates to the software powering iPhones, iPads, and other Apple devices. 

Samsung started selling its flagship S24 earlier this year which provided a boost to its sales

Apple launched the iPhone 15 and iPhone 15 Plus in September

While Samsung has taken the top spot every year since 2010, it was finally knocked off its pedestal by Apple in 2023

The company earlier this year lost the crown as the world's most valuable company to Microsoft.

It also made headlines last month after it canceled its plans to build an electric car.

In an internal memo, it said that some employees on the team that had been developing the car, known as the Special Projects Group, would be moved to its artificial intelligence (AI) division.

Investors are closely watching for updates on artificial intelligence development at Apple, which has so far spoken little about incorporating the AI technology into its devices.

Its share price is slipping - down 4.9 percent so far this year.