Smartphone Market Recovers: High-End, AI, and Foldables Drive Growth

Smartphone Market Recovers: High-End, AI, and Foldables Drive GrowthThe global smartphone market continued its recovery in Q2 2024, with shipments reaching 1.2 billion units, a year-on-year growth of 5%, according to the latest report from Canalys

Smartphone Market Recovers: High-End, AI, and Foldables Drive Growth

The global smartphone market continued its recovery in Q2 2024, with shipments reaching 1.2 billion units, a year-on-year growth of 5%, according to the latest report from Canalys. Although growth exceeded expectations, challenges such as rising costs, inventory turnover, and the business environment led Canalys to only slightly revise its full-year 2024 shipment forecast upwards. The report highlights emerging markets as a key driver of the overall market recovery, but some markets face macroeconomic uncertainty and intensified competition in the second half of the year. Looking at long-term trends, the smartphone market will gradually enter a plateau phase after a strong rebound this year, with a projected compound annual growth rate of 2% from 2024 to 2028.

Strong Demand in the High-End Market

The high-end smartphone market, priced above $600, continues its growth trajectory, with all the top five global vendors achieving year-on-year growth in Q2. Apple, fueled by the launch of its Apple Intelligence services, reversed its decline in Q1 and regained market attention, securing the top spot in the high-end market with a 62% market share. Samsungs Galaxy S24 series maintained strong demand, with shipments growing by 35% year-on-year, capturing the second position with a 22% market share. Huawei, leveraging its new Pura series, continued its robust recovery in the domestic market, achieving an 80% year-on-year growth and securing third place with a 9% global market share. Xiaomis 14 series continued to sell well, experiencing a 71% year-on-year growth, securing fourth place in shipments. Vivo, leveraging its X-series foldable flagships, further expanded its market share in the high-end segment, achieving robust growth in the domestic market and securing fifth place.

AI Smartphone Penetration Rate Continues to Climb

The report predicts that AI smartphone penetration will reach 17% in 2024, and is projected to surge to 30% in 2025. Apple, benefiting from its strong ecosystem advantage, remains the leader in the AI smartphone space, capturing a 51% market share in Q2 with 18 million units shipped. Various smartphone manufacturers are integrating AI technology into their products, offering users a more intelligent and convenient experience, driving the rapid development of the AI smartphone market.

Foldable Smartphone Market Faces Challenges, But Prospects Remain Strong

The foldable smartphone market is expected to witness a low growth rate of only 3% year-on-year in 2024, with estimated shipments of 18 million units. Despite facing challenges such as high prices and limited application scenarios, generative AI, new product forms, and the potential entry of new players are expected to reignite growth momentum in the foldable smartphone market. Canalys predicts that foldable smartphone shipments will grow at a compound annual growth rate of 30% from 2024 to 2028, reaching 51 million units.

5G Penetration Steadily Progresses

In 2024, 5G smartphones are expected to account for 67% of total shipments, a ratio that is projected to rise to 87% by 2028. With the continuous expansion of 5G networks and the decline in terminal device prices, 5G smartphones will become the mainstream in the future smartphone market.

Conclusion:

Despite facing challenges posed by the global economic slowdown and geopolitical uncertainties, the smartphone market exhibits a positive recovery trend. High-end, AI, and foldable phones, among other emerging areas, will become future growth engines, while 5G technologys widespread adoption will continue to drive market development. In the future, the smartphone market will evolve towards greater intelligence, personalization, and richer application scenarios, providing users with more convenient and efficient experiences.