Smartphone Market Rebounds: AI and Foldables Lead the Future

Smartphone Market Rebounds: AI and Foldables Lead the FutureAs we reach August 30, 2024, the smartphone market is showing signs of a rebound after a challenging period. Counterpoint Research, a leading research firm, predicts that global smartphone shipments will grow by 5% YoY in 2024, reaching 1

Smartphone Market Rebounds: AI and Foldables Lead the Future

As we reach August 30, 2024, the smartphone market is showing signs of a rebound after a challenging period. Counterpoint Research, a leading research firm, predicts that global smartphone shipments will grow by 5% YoY in 2024, reaching 1.23 billion units, reversing the decline witnessed over the past two years. This growth forecast has been revised upwards due to ongoing improvements in macroeconomic conditions and consumer confidence. This positive momentum is expected to continue in the years to come.

In 2023, global smartphone shipments fell by 3.2% YoY to 1.17 billion units, marking the lowest annual shipment volume in a decade. However, signs of a market recovery became apparent starting in Q4 2023, with shipments experiencing an 8.5% YoY increase to 326.1 million units, exceeding expectations. This rebound sets the stage for market growth in 2024.

Looking ahead, the smartphone market is projected to continue its growth trajectory. Expansion in emerging markets will attract more users to the smartphone ecosystem, while mature markets will benefit from the widespread adoption of high-value smartphones, resulting in long-term revenue growth. Additionally, the integration of generative AI is set to inject new energy into the market.

As user familiarity with generative AI devices increases, smartphone manufacturers are incorporating generative AI capabilities into their products. The share of smartphones equipped with generative AI is expected to rise from less than one-fifth in 2024 to over half by 2028. Apple's AI feature, AppleIntelligence, will be widely deployed across the upcoming iPhone 16 series, accelerating the adoption of generative AI devices in the smartphone market. This move has the potential to propel Apple to the top of the annual shipment rankings as early as 2025.

Beyond generative AI, foldable devices are another key component of sustained brand growth in the smartphone market. Manufacturers like Huawei, Honor, and Motorola are continuing to drive the expansion of the foldable smartphone market. Apple is expected to enter the foldable device space in 2027, further enriching the market product lineup. Apple has already completed the development of a foldable iPhone and is planning to launch two foldable devices: a foldable iPhone and a foldable iPad.

Overall, the global smartphone market is on the upswing, with high-end segments such as generative AI smartphones and foldable smartphones leading the charge. As technology advances and consumer demands evolve, the smartphone market will continue to grow in the coming years, offering users a richer, more convenient, and intelligent mobile experience.