The global smartphone market experienced a resurgence in 2024, rebounding from two consecutive years of decline and marking a turning point in the industry’s trajectory. Market analysis firms Counterpoint, Canalys, and IDC all reported positive growth, with estimates ranging from a 4% increase by Counterpoint to 6-7% increases by IDC and Canalys. This recovery signals a shift in momentum after 2023, which witnessed the lowest sales figures in a decade. The growth is attributed to several factors, including robust performance from Chinese manufacturers like Xiaomi and Vivo, alongside continued dominance by market leaders Apple and Samsung. Experts predict this upward trend to persist into 2025, indicating a period of stabilization and potential expansion for the smartphone market.
The renewed growth in 2024 represents a return to normalcy following a challenging period for the industry. The market began its recovery in the fourth quarter of 2023 and sustained this positive momentum for five consecutive quarters. This consistent growth suggests that the market has overcome the previous slump and is on a path towards sustained expansion. While the exact growth percentages vary slightly between the different market analysis firms, the overall trend is clear: the smartphone market is experiencing a revitalization.
Although there is some discrepancy regarding the top spot, with Counterpoint placing Samsung as the market leader by share while IDC and Canalys favor Apple, all three firms concur on Xiaomi’s strong performance, securing the third position. Xiaomi recorded a remarkable 12% increase in unit sales, making it the fastest-growing among major players. This surge propelled Xiaomi’s market share to 14%, narrowing the gap with Apple’s 18%. The varying reports on market leadership highlight the competitive landscape and the nuances in data collection and analysis.
Despite a slight decrease in market share, Counterpoint identifies Samsung as the overall leader for 2024. This underscores Samsung’s continued resilience and adaptability in a highly competitive market. Following the top three players, other prominent manufacturers like Oppo (including OnePlus), Vivo, and the Transsion group (comprising brands like Tecno and Infinix) also contributed significantly to the market’s growth. Their strong sales in Asia, coupled with expansion across Europe, Africa, and Latin America, played a crucial role in bolstering overall market figures.
The resurgence of the smartphone market is partly attributed to the emergence of AI-centric devices. AI has effectively replaced foldable screens as the latest technological innovation driving consumer interest. While demand for foldable phones declined despite intensified marketing efforts, manufacturers shifted their focus towards integrating advanced AI capabilities. This shift in focus reflects the evolving consumer preferences and the industry’s responsiveness to emerging technological trends. The integration of AI functionalities is expected to reshape the smartphone landscape, with predictions indicating that by 2028, nine out of ten smartphones priced above $250 will incorporate generative AI.
The introduction of AI-powered smartphones marks a significant inflection point in the industry’s evolution. This technological advancement has revitalized consumer interest and spurred innovation among manufacturers. As AI capabilities become increasingly sophisticated and integrated, smartphones are transforming into more than just communication devices, evolving into intelligent personal assistants capable of performing complex tasks and providing personalized experiences. This transition is expected to drive future growth in the smartphone market, with AI becoming a central differentiator and a key driver of consumer adoption. The industry’s shift towards AI integration not only highlights its adaptability but also underscores its potential for continued innovation and growth in the years to come.
