World smartphone gross sales rebounded strongly in 2024 after two successive years of decline, however Apple barely managed progress, an unbiased examine confirmed, underscoring the velocity with which Android-based rivals are gaining floor in China and rising markets.
Apple and its rivals will ship 6.2% extra telephones or an estimated 1.24 billion models in 2024, based on market tracker IDC. However iPhone volumes probably edged simply 0.4% greater. Nonetheless, Apple stays by far the revenue chief with a median promoting value surpassing US$1 000, whereas Android rivals collectively got here in at round $295, IDC estimates.
The most recent examine highlights the uneven restoration of the smartphone market, which slumped within the post-Covid period regardless of the appearance of AI. A lot of that 2024 progress got here from pent-up demand and areas with decrease smartphone penetration, IDC mentioned. Extra reasonably priced gadgets from Android distributors helped Chinese language manufacturers higher seize that chance, whereas Apple is forecast to fare higher subsequent yr.
The addition of synthetic intelligence enhancements, a giant theme among the many likes of Samsung Electronics, Apple and Google, did not excite customers.
“Whereas generative AI continues to be a scorching subject and high precedence for a lot of distributors, it’s but to impression demand considerably and drive early upgrades,” mentioned Nabila Popal, analysis director at IDC. “Extra investments are wanted to extend shopper consciousness and introduce a ‘must-have’ characteristic that may rush customers to the shop and create that tremendous cycle which everyone seems to be ready for.”
Manufacturers like Xiaomi and Huawei Applied sciences are pouring funding into {hardware} and designing their very own processors — in a bid to mitigate the menace or results of US sanctions whereas customising their designs for AI use instances. Huawei on Tuesday launched its newest smartphone powered by its made-in-China chips, whereas Xiaomi is getting ready an in-house semiconductor for 2025 gadgets.
Reductions
In China’s extremely aggressive market, the place half a dozen corporations commerce the highest spot every quarter, massive and extended reductions stimulated gross sales. These had extra of an impact than within the earlier yr, although concern concerning the nation’s ailing economic system is prone to persist.
Learn: Huawei waves Android goodbye
Globally, shipments have but to return to pre-pandemic ranges, and IDC doesn’t count on something greater than low-single-digit progress for years to return. Lengthening occasions between upgrades, market saturation in developed economies and a quickly rising commerce in used smartphones are seen as the most important elements contributing to stagnation. — Vlad Savov, with Gao Yuan, (c) 2024 Bloomberg LP
