Smartphone market recovered in 2024 after 2 years of decline
Led by Samsung and Apple
Global smartphone sales increased 4% year over year in 2024, marking a significant recovery after two years of decline. According to Counterpoint Research’s Market Pulse, the market bounced back after its weakest performance in a decade in 2023, driven by improving consumer sentiment and stabilising macroeconomic conditions.
The recovery was felt across all regions, with notable growth in Europe, China, and Latin America. This resurgence in smartphone sales began in the fourth quarter of 2023 and continued for five consecutive quarters into 2024.
Tarun Pathak, Counterpoint’s Research Director, said, “2024 was a year of recovery and normalisation following a challenging 2023. Smartphones remain an essential part of daily life, and as macroeconomic pressures eased, we saw strong growth across most markets, particularly in Europe, China, and Latin America.”
Samsung continued to lead the global smartphone market in 2024, driven by strong demand for its Galaxy S24 series and the A-series models. The S24 series, the first to feature AI capabilities, outperformed its predecessors and received a positive reception in Western Europe and the United States.
Apple held the second spot in the market, with an 18% share, primarily driven by its launch of the iPhone 16 series. However, the series experienced a mixed reception due to the limited availability of Apple Intelligence at launch. Despite this, Apple saw strong growth in non-core markets, including Latin America, Africa, and Asia-Pacific, helping it retain its position as the second-largest smartphone brand globally.
Xiaomi emerged as the fastest-growing brand among the top five in 2024, thanks to a strategic realignment of its portfolio and an aggressive push into premium segments. Its aggressive market campaigns in established and emerging markets further bolstered its expansion efforts.
Oppo ranked fourth, saw a slight year-on-year decline in volume, though the band finished the year with stronger momentum, particularly in its home market of China. Rounding off the top five, Vivo posted impressive growth in India and China, ending the year as the top-ranked OEM in China.
While the top five brands remained unchanged from 2023, they faced increasing competition from challenger brands such as Huawei, Honor, and Motorola. These brands, especially in emerging markets, have seen rapid growth, challenging the dominance of the traditional top players.
The arrival of generative artificial intelligence (GenAI) in smartphones in 2024 marked a significant technological shift. Although GenAI is available only in premium models, It will become a standard feature in mid-range devices by 2028. By then, it is predicted that nine out of ten smartphones priced above $250 will be equipped with GenAI capabilities.
While volumes may not return to pre-pandemic levels, premiumisation has driven revenue growth, with average selling prices rising. Sales of ultra-premium smartphones priced above $1,000 grew the fastest in 2024.
This trend was driven by device subsidies in developed markets and easy access to low-cost financing in emerging regions. As a result, revenue growth in the smartphone market is expected to continue outpacing volume growth, with projections for 8% revenue growth compared to 4% in volume in 2025.
The global smartphone market’s return to growth in 2024 signals a positive shift after two years of downturn. With strong performances from Samsung, Apple, and challenger brands like Xiaomi, Honor, and Motorola, the market looks set for continued growth in 2025.
The rise of GenAI in smartphones will also be a key factor in the industry’s ongoing transformation, pushing the boundaries of what these devices can achieve.
Image: Samsung led the global smartphone market in 2024. Credit: Tim Douglas
Last Updated on 3 hours by Arnold Pinto
