Global Smartphone Market Rebounds! IDC Upwardly Revises Full-Year Shipment Forecast, Generative AI Emerges as New Engine

Global Smartphone Market Rebounds! IDC Upwardly Revises Full-Year Shipment Forecast, Generative AI Emerges as New EngineResearch firm IDC on August 27 announced an upward revision to its full-year smartphone shipment forecast, projecting 1.23 billion units shipped globally in 2024, a 5

Global Smartphone Market Rebounds! IDC Upwardly Revises Full-Year Shipment Forecast, Generative AI Emerges as New Engine

Research firm IDC on August 27 announced an upward revision to its full-year smartphone shipment forecast, projecting 1.23 billion units shipped globally in 2024, a 5.8% year-over-year growth. The previous forecast stood at 1.21 billion units with a 4% year-over-year growth. IDC attributes the upward revision to robust smartphone shipments in the first half of the year.

Nabila Popal, Research Director, IDC Worldwide Quarterly Mobile Device Trackers, said: "Strong growth in Android devices in China and emerging markets is driving the improved outlook for 2024, solidifying the recovery path for the smartphone market." Popal further noted, "Android is set to grow by 7.1% this year, nine times faster than the 0.8% growth for iOS. Apple's growth slowdown is driven by increased competition in China. IDC expects iOS to see its growth trajectory improve in 2025, reaching 4% year-on-year growth."

Anthony Scarsella, Research Director, IDC Worldwide Quarterly Mobile Device Trackers, pointed out that the AI hype is driving smartphone sales as major handset manufacturers are incorporating generative AI tools in new models, igniting upgrade enthusiasm among consumers in key economies like China and the United States.

IDC projects strong 344% growth for generative AI smartphones by the end of 2024, capturing an 18% share of the overall market, as most flagship models will embrace on-device AI capabilities. However, generative AI-enabled devices won't be cheap initially, with average selling prices more than double those of non-AI devices, further propelling the premiumization trend.

IDC's data reveals that Android devices continue to dominate the global smartphone market share, fueled by strong growth in China and emerging markets. On the other hand, iOS devices face intense competition from Android, leading to a slower growth rate. However, IDC anticipates iOS device growth to rebound in the coming years, primarily driven by Apple's strengthened competitiveness in the Chinese market.

The application of generative AI technology is undoubtedly shaping up to be a new engine for smartphone market growth. Major handset manufacturers are integrating generative AI tools into their flagship models, sparking consumer enthusiasm for new technologies, which will further stimulate smartphone market demand. However, the higher price tag of generative AI-enabled phones will also push the trend towards premium products.

In conclusion, IDC maintains an optimistic outlook for the global smartphone market, anticipating continued recovery in the coming years, with generative AI serving as a key growth driver. As technology evolves, the smartphone market will see the rise of new technologies and applications, offering users a more diverse and enriched experience.