- Global smartphone shipments are forecasted to grow 5.8% in 2024, reaching 1.23 billion units.
- Android devices are expected to grow 7.1% outpacing iOS growth of 0.8%.
- Generative AI (GenAI) smartphones are expected to see a 344% growth, capturing 18% of the market by the end of 2024.
The smartphone market, once battered by economic uncertainties and supply chain disruptions, is showing signs of a robust recovery.
Global smartphone shipments are projected to grow by 5.8% year over year in 2024 reaching 1.23 billion units, according to IDC. Early 2024 has already shown promise, with 12% growth in Q1 and 9% in Q2, sparking optimism for a continued upward trend throughout the year.
This resurgence is particularly evident in China and developing regions, where affordable smartphones are experiencing a significant uptick in demand.
A key factor in this rebound is the growth of Android smartphones, especially in emerging markets like China. Following a tough two years, affordable Android devices are gaining traction again, fueling market expansion.
According to IDC, Android shipments are set to grow 7.1% in 2024, far outpacing iOS’s 0.8% growth, which faces headwinds in China due to heightened competition.
Another factor driving the resurgence is the integration of Generative AI (GenAI) technology into smartphones. These devices, equipped with on-device AI capabilities, are designed to offer enhanced user experiences, from intelligent assistants to personalized recommendations.
The technology brings a renewed sense of excitement to the premium market as manufacturers race to incorporate GenAI capabilities into their flagship devices.
IDC projects an explosive 344% growth for GenAI-capable smartphones by the end of 2024, with these devices expected to account for 18% of the total market.
However, the technology won’t come cheap. The average selling price (ASP) of GenAI smartphones is expected to be more than double that of non-GenAI devices, contributing to the trend of premiumization in the smartphone market.
CHART: GenAI Smartphones Set to Dominate the Smartphone Market by 2028
The shipments are projected to explode by a staggering 363.6% in 2024.
Looking at brand performance, while Apple’s growth is expected to be slower than Android, experts note the potential for an upswing, particularly if the upcoming iPhone 16 effectively leverages GenAI features and establishes local AI partnerships in China. IDC anticipates that Apple’s growth will improve in 2025 by 4% YoY, driven by its AI-focused initiatives.
Overall, 2024 is shaping up to be a pivotal year for the smartphone industry. With emerging markets embracing affordable Android devices and premium markets shifting toward GenAI-powered smartphones, the sector is on a promising path to recovery. As these trends continue to evolve, we can expect to see even more innovative and powerful smartphones in the years to come.
