In a notable shift from the preceding years, the global smartphone market has experienced a vigorous resurgence in 2024, with shipments increasing by four percent compared to the previous year. This slight uptick is particularly significant as it marks the first annual growth after two consecutive years of declines, indicating a pivotal transformation in consumer sentiment. The market had previously fallen to its lowest sales figures in a decade in 2023. The resurgence in 2024 can be attributed to various macroeconomic factors, enhancing consumer confidence that was elusive in recent times.
A report from Counterpoint Research reveals insights that affirm this recovery. Research Director Tarun Pathak highlighted the normalization within the smartphone landscape, attributing growth largely to the easing of macroeconomic pressures that had constrained consumer spending in prior periods. As economic conditions improved, consumer adoption of new devices surged, suggesting that the market was regaining momentum.
In this recovering landscape, Samsung has emerged as the front-runner, commanding a market share of 19 percent. The tech giant’s Galaxy S24 series, which positions itself as an artificial intelligence-driven innovation, has been pivotal to this success. The strategic marketing and release of the Galaxy S24 series have resonated particularly well in established markets like Western Europe and the USA, where consumers have shown a robust preference for premium features. This trend underscores Samsung’s ability to meet evolving consumer demands through technological advancements.
Apple, occupying the second spot with an 18 percent share, has seen varying levels of success with its iPhone 16 series. Although the company has managed to maintain performance in non-core markets such as Latin America and parts of Asia, the flagship models received a lukewarm reception in regions where availability issues marred the launch. Apple’s ongoing struggle to capture the Pro and Pro Max market segments in high-demand regions like China poses challenges. Senior Analyst Ivan Lam emphasized that despite these hurdles, the appeal for Apple’s high-end offerings remains strong, buoying its overall market position.
Xiaomi, with a focused push into markets with burgeoning middle-class populations, has garnered a 14 percent share, marking it as the fastest-growing among the top five brands. This is a significant achievement, especially in a highly competitive arena layered with emerging rivals such as Oppo and Vivo, both securing 8 percent of the market each.
Despite the dominance of the leading brands, the smartphone market is witnessing an influx of aggressive competitors such as Huawei and Honor, which are siphoning off market share. This expansion of the competitive landscape signals that the top five players, despite their growth, must continue innovating to retain their stronghold. Motorola is also emerging as a formidable player among the top 10, demonstrating swift growth and adapting to market demands efficiently.
Looking ahead, the introduction of Generational AI capabilities in premium smartphones is expected to be a significant trend, transforming user experiences. By 2028, projections suggest that a staggering nine out of ten smartphones priced above $250 will integrate some form of GenAI technology. This shift highlights an industry pivot where innovation drives consumer interest and differentiation among brands.
The smartphone industry faces an inflection point where revenue generation is expected to outpace volume growth. While volumes may not revert to pre-COVID-19 peak levels, the anticipated growth rate of revenue (projected at 8 percent YoY) signifies a shift towards higher-value, premium products resonating with consumers. With an annual volume growth rate of 4 percent forecasted for 2025, the industry’s emphasis may pivot toward enhanced user experiences, premium features, and innovations that cater to the evolving needs of the modern consumer.
Overall, the recovery of the smartphone market in 2024 exemplifies resilience in the face of adversity, underpinned by improved economic conditions and shifting consumer preferences. Key players must remain strategic and innovative to navigate the increasingly competitive landscape, as the market moves towards a future accentuated by technological advancements. As consumer demands evolve, the smartphone industry is set for continued transformation, with opportunities ripe for those ready to adapt and lead.