Smartphone Sector Shifts Amid Growing U.S.-China Tech Rivalry

(MENAFN) The tech battle between the U.S. and China continues to evolve in the smartphone sector, with the U.S. retaining its leadership through iconic brands and technological innovation, while China excels in production, solidifying its role as the world’s manufacturing powerhouse.

Smartphone usage continues to soar globally, with the number of devices expected to hit 7.4 billion by 2025, according to reports. Despite a slowdown in market growth due to longer replacement cycles, the first quarter of the year saw a 1.5% increase in smartphone shipments, driven by ongoing tensions between the U.S. and China and broader global economic shifts.

South Korean giant Samsung led the pack in the first quarter with 60.6 million units shipped, outpacing Apple, which delivered 57.9 million iPhones during the same period. Apple, the world’s most valuable company, derives over 55% of its revenue from iPhone sales.

Chinese brands Xiaomi, Oppo, and Vivo also posted strong numbers, with 41.8 million, 23.5 million, and 22.7 million deliveries, respectively. While Apple continues to dominate in the U.S., China boasts three of the top five smartphone manufacturers globally.

The U.S. maintains an edge in software, with Google’s Android powering the top five brands, excluding Apple, offering a clear software advantage over China. This dominance is particularly significant as operating system licenses and app store revenues provide substantial profits.

In response to U.S. sanctions, Chinese tech giant Huawei has been developing its own operating system, HarmonyOS, after being banned from using Android on its devices. These sanctions, while driven by security concerns, are widely seen as part of the broader tech rivalry between the two superpowers.

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