July 15 (Reuters) - Global smartphone shipments rose

6.5% in the second quarter, driven by Samsung Electronics ( SSNLF ) and

Apple ( AAPL ), preliminary data from IDC showed on Monday, but a full

recovery in demand is yet to come around as it remained

challenged in some markets.

WHY IT'S IMPORTANT

Global shipments grew for the fourth consecutive quarter,

according to the research firm, as smartphone makers look to

artificial intelligence to entice price-wary consumers and

capture a larger market share.

KEY QUOTES

There is "lots of excitement" in the smartphone market,

thanks to higher average selling prices and the buzz around gen

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 ( AAPL ) and Samsung both continue to push the top of the

market and benefit the most from the ongoing premiumization

trend, many leading Chinese OEMs are increasing shipments in the

low end in an attempt to capture volume share amid weak demand,"

Popal said, adding that the share of mid-range devices is

challenged, as a result.

CONTEXT

Apple ( AAPL ) held its developer conference last month where it

showcased new AI features for its iPhones powered by OpenAI's

ChatGPT.

Samsung also held its Galaxy Unpacked event last week where

it announced new models for its Galaxy fold and flip as well as

new AI features.

BY THE NUMBERS

Samsung held the first spot with an 18.9% share

of shipments in the second quarter, followed by Apple ( AAPL )

with a 15.8% share and Xiaomi ( XIACF ) with 14.8%.