In 2024, the global smartphone market witnessed a notable resurgence with shipments experiencing a year-over-year increase of four percent. This revitalization marks a significant turning point in a landscape that had suffered two consecutive years of decline. Initial indications of recovery began to surface in the last quarter of 2023, driven by improving macroeconomic conditions and more favorable consumer sentiments. According to Counterpoint Research’s latest findings, this growth is promising for manufacturers who have faced considerable challenges in recent years, suggesting that the smartphone market is slowly but surely normalizing.
Samsung once again emerged as the dominant force in the smartphone arena, capturing an impressive 19 percent of the global market share. The company’s Galaxy S24 series, touted as its first generative AI-enabled smartphones, garnered strong customer interest, particularly in Western Europe and the USA. Customers were drawn by the allure of cutting-edge technology and robust performance, demonstrating that innovative features can sway purchasing decisions even in a fluctuating market.
Following closely is Apple, which secured an 18 percent market share. However, the reception of the iPhone 16 series was mixed, as delays in the availability of certain features, particularly its proprietary artificial intelligence capabilities, put a damper on initial consumer enthusiasm. Despite this, Apple’s influence has not waned; the company continues to perform well across non-core markets like Latin America and parts of Asia, indicating a strategic diversification that could pay long-term dividends.
Xiaomi, meanwhile, has solidified its position in third place with a 14 percent share, emerging as the fastest-growing brand among the top five original equipment manufacturers (OEMs). This growth can be attributed to a blend of affordability and innovative features that resonate with budget-conscious consumers. Competing brands such as Vivo and Oppo have each claimed an eight percent market share, but it is the aggressive strategies of companies like Huawei, Honor, and Motorola that pose a growing challenge to the established leaders.
Changing Consumer Preferences and Market Dynamics
The favorable market conditions observed in 2024 have spurred growth across various regions, with Europe, China, and Latin America leading the charge. Tarun Pathak from Counterpoint Research noted a significant shift in consumer preferences, which may have contributed to the overall positive sentiment in the market. As more consumers re-evaluate their device needs in light of environmental and economic considerations, smartphone manufacturers are tasked with adapting to these evolving demands.
Interestingly, while the top five brands remained unchanged, they collectively experienced a slight reduction in market share due to intensified competition from rising brands. This underscores a broader trend in the industry where smaller players, once overshadowed, are rapidly capturing attention through aggressive marketing and innovative features.
A pivotal aspect of the 2024 smartphone landscape is the integration of generative AI technologies. Analysts project that by 2028, approximately 90 percent of smartphones priced above $250 will feature generative AI capabilities. This trend indicates an impending shift towards smarter devices that prioritize user experience and personalization. As consumers increasingly seek advanced functionalities, smartphone manufacturers must invest heavily in research and development to stay relevant.
Despite the promising growth trajectory observed in 2024, experts caution against expecting volumes to reflect the peaks seen before the COVID-19 pandemic. Instead, revenue growth is anticipated to surpass volume growth, with a predicted eight percent annual increase in revenues against a four percent rise in shipments by 2025. This gap highlights a crucial transition in the market, centering on premium offerings rather than sheer volume.
The global smartphone market’s tentative recovery in 2024 signals not only a rebound from previous downturns but also a transformation in consumer expectations and technological capabilities. As we move forward, manufacturers must navigate a competitive landscape characterized by innovation and adaptability. The integration of advanced technologies, particularly generative AI, will likely redefine what consumers expect from their devices, creating both challenges and opportunities for brands striving to capture and maintain market share.
