The Global Smartphone Market Rebounds Strongly in 2024: 4% Sales Growth, High-End Trend Prominent

The Global Smartphone Market Rebounds Strongly in 2024: 4% Sales Growth, High-End Trend ProminentAccording to preliminary market observations from Counterpoint Research, the global smartphone market experienced a strong recovery in 2024, achieving a 4% year-over-year sales growth after two consecutive years of decline. This growth is primarily attributed to an improved macroeconomic environment, boosting consumer confidence and driving renewed market demand

The Global Smartphone Market Rebounds Strongly in 2024: 4% Sales Growth, High-End Trend Prominent

According to preliminary market observations from Counterpoint Research, the global smartphone market experienced a strong recovery in 2024, achieving a 4% year-over-year sales growth after two consecutive years of decline. This growth is primarily attributed to an improved macroeconomic environment, boosting consumer confidence and driving renewed market demand. It's noteworthy that 2023 saw the lowest smartphone sales in a decade, making the 2024 growth all the more significant.

Tarun Pathak, Research Director at Counterpoint Research, stated: "2024 was a year of recovery and normalization after a challenging 2023. As macroeconomic pressures eased, the smartphone market showed signs of recovery starting in Q4 2023, sustaining growth for five consecutive quarters. Almost all markets showed growth, with Europe, China, and Latin America exhibiting particularly strong performance."

In terms of brand competition, Samsung maintained its market leadership, driven by strong demand for its S24 series and A series products. The S24 series, positioned as the first AI-powered device, surpassed its predecessors in performance and proved particularly popular in Western Europe and the US, significantly contributing to Samsung's market share growth.

Apple secured the second position with an 18% market share. While the iPhone 16 series received mixed reviews, partly due to the absence of Apple Intelligence features at launch, this didn't hinder Apple's robust growth in non-core markets like Latin America, Africa, and Asia (others). Ivan Lam, Senior Analyst at Counterpoint Research, noted: "Overall iPhone shipments declined, but consumers are shifting towards Apple's ultra-premium offerings, partially offsetting the shipment decline. In markets like China, we observed a significant increase in the sales share of Pro models. For example, Pro and Pro Max models accounted for 40% of the market share in China during Q4 2023, and this is projected to surpass 50% by Q4 2024."

Among other major vendors, Xiaomi showed the fastest growth, closely linked to its product portfolio adjustments, high-end strategy, and aggressive market expansion. Vivo became the leading original equipment manufacturer (OEM) by year-end, fueled by strong performance in India and China. Notably, the top five brands remained consistent with 2023, but experienced some market share erosion due to fierce competition from players like Huawei, Honor, and Motorola. Huawei, Honor, and Motorola were among the fastest-growing OEMs among all top ten brands, demonstrating strong market competitiveness.

In 2024, generative AI (GenAI) technology brought about a new wave of transformation to the smartphone industry. While GenAI-enabled smartphones are currently concentrated in the high-end segment, Counterpoint Research anticipates the technology's gradual adoption in mid-range devices. By 2028, it's projected that nine out of ten smartphones priced above $250 will feature GenAI capabilities.

While smartphone sales are unlikely to return to pre-COVID-19 pandemic peak levels, a high-end trend is driving sustained revenue growth. Higher average selling prices (ASPs) are consistently increasing industry revenue. In 2024, ultra-premium smartphones priced above $1000 experienced the fastest sales growth, reflecting consumers' willingness to invest more in their next smartphone purchase. Device subsidies in developed markets and readily available low-cost financing options in emerging markets further support this trend.

Looking ahead, Counterpoint Research predicts that revenue growth will continue to outpace sales growth in 2025, projecting an 8% year-on-year revenue growth rate compared to a 4% year-on-year sales growth rate. This indicates a shift towards a more premium, high-margin smartphone market.

In summary, the global smartphone market demonstrated a strong recovery in 2024. Sales growth, a high-end trend, and the rise of GenAI technology shaped the new market landscape. While challenges remain, the smartphone market remains vibrant and full of potential, warranting continued attention. Samsung and Apple continue to hold leading positions, while vendors like Xiaomi and Vivo exhibit strong growth momentum, ensuring intense market competition. The premiumization trend and GenAI applications will further propel the smartphone market toward higher profit margins. Future market development will depend on how manufacturers navigate market challenges and seize new opportunities.