The global smartphone market experienced a significant rebound in 2024, with shipments increasing by 6.2 percent to reach 1.24 billion units sold. However, Apple missed out on this growth, with iPhone shipments edging up only 0.4 percent during the same period. According to market research firm IDC, most of the growth in the smartphone market came from pent-up demand and regions with lower smartphone penetration.
Android device makers, particularly those offering more affordable devices, were able to better capture this opportunity. Chinese brands like Xiaomi and Huawei heavily invested in hardware and software development, including designing their own processors, which helped them compete effectively in the market. Despite the slow growth in iPhone shipments, Apple remains the profit leader in the industry, with an average selling price surpassing $1,000.
Android brands capture growth opportunity
In comparison, Android rivals collectively had an average selling price of around $295. The addition of artificial intelligence (AI) enhancements, a major theme among companies like Samsung, Apple, and Google, has yet to significantly impact consumer demand.
Nabila Popal, research director at IDC, stated, “While GenAI continues to be a hot topic and top priority for many vendors, it is yet to impact demand significantly and drive early upgrades.”
The Chinese market remains highly competitive, with a half-dozen companies trading the top spot each quarter. Large and prolonged discounts in China had a significant positive effect on sales, though concerns about the country’s ailing economy persist. Looking ahead, IDC does not expect anything more than low-single-digit growth for the foreseeable future in the global smartphone market.
Factors such as lengthening times between upgrades, market saturation in developed economies, and a rapidly growing trade in used smartphones are seen as major contributors to the stagnation.
