For the first time in 12 years, Apple has surpassed Samsung to take the lead in the global smartphone market, accounting for over a fifth of phones shipped last year, according to data from the International Data Corporation (IDC).

Samsung took 19.4% of the market share with Chinese phone makers Xiaomi, OPPO, and Transsion following behind, the BBC reported.

The IDC reports a 3% drop in smartphone sales last year, with nearly 1.2 billion sold, the lowest in a decade. This is due to economic challenges and high-interest rates, while experts predict a recovery in the market this year.

However, Apple was IDC’s “biggest winner” as it sold more than 234 million phones last year.

“Not only is Apple the only player in the Top 3 to show positive growth annually, but also bags the number 1 spot annually for the first time ever,” said the IDC’s Nabila Popal.

“All this despite facing increased regulatory challenges and renewed competition from Huawei in China, its largest market.”

Huawei has made progress in producing its chips after being banned from US-made chips due to national security concerns.

Interest-free financing plans and trade-in offers are driving demand for premium devices like Apple, boosting the company’s competitiveness.

Samsung, previously the world’s largest maker of memory chips, smartphones, and televisions, has been slapped with disappointing news.

South Korea’s electronics giant, Samsung, has warned that profits may decline due to weak global consumer electronics demand and competition from cheaper Android models like Transsion and Xiaomi.

These brands are gaining popularity from price-conscious consumers and emerging markets.

The IDC predicts a “very interesting time” in the smartphone market, with increasing competition from Android providers and a growing focus on foldable phones and AI capabilities.