Apple's smartphone sales experienced a significant 10% decline last quarter, according to market research firm IDC. This downturn primarily stemmed from a sharp decrease in iPhone sales in China.

"Past challenges such as supply chain issues and macroeconomic conditions haven't impacted Apple as severely as other brands," said Nabila Popal, research director at IDC. "However, this recent drop is notable."

The decline has allowed Samsung to reclaim the top position in smartphone manufacturing, which it had held for 12 years before Apple briefly took the lead last year. "Samsung's strong showing is significant since Android, the operating system used in Samsung devices, is projected to grow twice as fast as Apple's iOS in the upcoming year," Popal explained.

Overall, the global smartphone market is showing signs of recovery, with year-over-year shipments increasing by 7.8% in the first quarter of 2024. Samsung currently holds a market share of 20.8%, followed by Apple at 17.3% and Xiaomi at 14.1%.

China remains a crucial market for Apple, but nationalism, economic challenges, and increased competition have hindered its growth. "Chinese consumers are now favoring local brands," Popal noted.

Industry insiders speculate that Apple's lack of a clear messaging around artificial intelligence (AI) may have contributed to its recent decline. Samsung, on the other hand, has invested heavily in AI advancements for its Galaxy S24 lineup.

"As the smartphone market recovers and AI becomes increasingly important, Samsung is well-positioned to gain further market share," Popal concluded.