Smartphone sales witness 4% growth in 2024 after 2 years decline – reports

In the latest report by Counterpoint Research’s Market Pulse, the global smartphone market witnessed a surge in 2024. The reports’ preliminary data noted that South Korean device maker, Samsung led other manufacturers in terms of smartphone shipments for the year.

In the report, the smartphone industry achieved a 4 per cent year-on-year growth after experiencing a decline in the previous two consecutive years where the sales in 2023 hit their lowest sales point in a decade. 

The industry’s growth was attributed to macroeconomic conditions which helped drive demand and improve customers’ product perception.

Reacting to the turnaround, Research Director at Counterpoint Research Tarun Pathak expressed that 2024 was a pivotal year of recovery and normalization for the industry after experiencing a difficult 2023. 

“Smartphones continue to be an essential product, pivotal to people’s daily lives. As macroeconomic pressures softened, the market started showing signs of recovery from Q4 2023 and has now grown for five consecutive quarters. Almost all markets showed growth, led by Europe, China, and Latin America,” he said.

Aside from microeconomic indicators, another feature that marked a technological milestone in 2024 for the industry was the introduction of Generative AI (GenAI) capabilities in smartphones. Though it’s currently limited to premium devices, the features are expected to be included in other models by 2028.

Analysts also highlighted that premiumization drove market revenues higher where the sales of ultra-premium devices priced above $1,000 grew the fastest in 2024. It was also boosted by subsidies in developed markets and the availability of low-cost financing options in emerging economies.

For 2025, it was projected that the increasing demand for premium and AI-enabled devices is expected to continue. This looks to set the pace for competition and new initiatives in the industry. Revenues are also expected to keep rising due to higher selling prices where the report predicted revenue growth of 8 per cent YoY in 2025, outpacing the forecasted 4 per cent volume growth.

Samsung tops Apple in smartphone sales

Again, Samsung cemented its position as the global market leader in 2024. This was controlled by high demand for its Galaxy S24 and A-series devices.

Samsung’s first AI-centric smartphone, the Galaxy S24 series, outperformed previous iterations and was especially popular in Western Europe and the U.S.

With an 18 per cent market share, iPhone maker Apple followed in second place. Despite challenges, Apple grew strongly in emerging markets, including Latin America, Africa, and Asia-Pacific. On another end, its iPhone 16 series received mixed feedback due to the limited availability of Apple Intelligence at launch.

“iPhone sell-through was down, but consumers are pivoting to Apple’s ultra-high-end models, helping to offset some of the declines. In China, for instance, the Pro and Pro Max devices accounted for over half of all iPhone sales by the end of 2024,” Ivan Lam, Senior Analyst at Counterpoint Research commented.

Additionally, Technext earlier reported that Apple lost some share of sales to its Android rivals last year. According to the same report by Counterpoint, Apple slipped a point to 18 per cent market share in 2024 and also experienced a 2 per cent sales decline for the full year when the broader market rose by 4 per cent globally.

Following the launch of the iPhone 16 in September, California-based Apple has been setting the pace on artificial intelligence (AI) thereby rolling out AI enhancements in stages. 

But the world’s largest smartphone market, China is yet to have the new features in its market. Apple explained that it is still working on securing local partners who can help provide features like AI writing assistance and image generation.

“Apple’s iPhone 16 series was met with a mixed response, partly due to a lack of availability of Apple Intelligence at launch. However, Apple continued to grow strongly in its non-core markets like Latin America,” Counterpoint director Tarun Pathak said.

China’s smartphone producers are all developing their in-house AI tools and agents which include services that can perform tasks on a user’s behalf. The Top 10 saw Lenovo Group’s Motorola, Shenzhen-based Huawei Technologies, and Honor Device among the fastest-growing brands, the report explained. 

Read More: Apple loses share of smartphone sales to Chinese android makers Xiaomi, Vivo, others in 2024.