Good news: The global smartphone market has rebounded, bad news: Apple missed out

In 2024, the global smartphone market has experienced a strong rebound, ending two consecutive years of declining sales. Market tracking agency IDC predicts that smartphone shipments will grow by 6.2% in 2024, with total shipments expected to reach 1.24 billion units. However, it is worth noting that Apple's growth is relatively small, with iPhone shipments likely to increase by only 0.4%, indicating that its competitors—numerous Android manufacturers—are rapidly gaining market share. Long-term significant discounts offered by five or six Chinese smartphone manufacturers have stimulated sales, and these discounts have proven more effective than the previous year. Of course, Apple remains the most profitable company, with an average selling price exceeding $1,000, while the average selling price of Android competitors is around $295. However, the recovery of the smartphone market is not balanced. Despite the emergence of AI technology, the smartphone market remains sluggish in the post-pandemic era. IDC points out that the main drivers of growth in 2024 come from pent-up demand and regions with low smartphone penetration. More affordable devices launched by Android manufacturers have helped Chinese brands seize this opportunity. Although companies like Samsung Electronics, Apple, and Google are vigorously promoting AI-enhanced features, these have not sparked consumer interest. Nabila Popal, IDC's research director, stated: “Although generative artificial intelligence (GenAI) remains a hot topic and top priority for many manufacturers, it has not yet significantly impacted demand or driven early device upgrades. More investment is needed to raise consumer awareness and introduce a 'must-have' feature that drives consumers to stores, creating the super cycle that everyone is anticipating.” It is worth mentioning that globally, smartphone shipments have not yet returned to pre-pandemic levels, and IDC expects limited growth in shipments over the next few years, with only low single-digit growth. The extension of upgrade cycles, saturation of developed market economies, and rapid growth in the second-hand smartphone trade are seen as major factors contributing to market stagnation