Global Smartphone Market Rebounds in 2024: High-End Trend Drives Revenue Growth, Average Selling Price Reaches Record High

Global Smartphone Market Rebounds in 2024: High-End Trend Drives Revenue Growth, Average Selling Price Reaches Record HighAs 2024 concluded, the global smartphone market showed signs of a robust recovery. A recent report by Counterpoint indicates that thanks to a strong high-end trend, global smartphone market revenue grew by 5% year-on-year, ending two consecutive years of decline

Global Smartphone Market Rebounds in 2024: High-End Trend Drives Revenue Growth, Average Selling Price Reaches Record High

As 2024 concluded, the global smartphone market showed signs of a robust recovery. A recent report by Counterpoint indicates that thanks to a strong high-end trend, global smartphone market revenue grew by 5% year-on-year, ending two consecutive years of decline. The average selling price (ASP) soared to a record high of $356. This growth reflects not only the increasing consumer demand for premium smartphones but also the gradual improvement in global macroeconomic conditions and consumer confidence. Simultaneously, global smartphone shipments also saw growth after a two-year downturn, further fueled by advancements in 5G coverage, improved camera technology, and enhanced processor performance.

Counterpoint's report highlights the dual growth in ASP and shipments as the key drivers of the positive performance in 2024. The increased focus of Original Equipment Manufacturers (OEMs) on high-end products, coupled with sustained consumer demand for premium devices and rising input costs, resulted in revenue growth outpacing shipment growth, pushing the ASP to a new record. Looking ahead, Counterpoint predicts single-digit percentage growth in smartphone shipments in 2025, while the ASP and revenue are expected to continue outpacing shipment growth. The proliferation of low-cost 5G technology and the penetration of generative AI into lower price segments will be two major trends to watch in 2025.

The report also provides a detailed analysis of the performance of major smartphone vendors in 2024. Apple, despite a 3% year-on-year decline in iPhone shipments, saw no significant impact on revenue, primarily due to a sustained increase in ASP, exceeding $900 for a record high. The increasing contribution of Pro models to Apple's product portfolio highlights the continued strength of the high-end market for the company.

Samsung Electronics, while experiencing a slight dip in 2024, maintained its leading position in global smartphone shipments. The impact of the shipment decline was offset by ASP growth, which exceeded the market average, ultimately resulting in a 2% year-on-year revenue increase. This was largely driven by the strong performance of the Galaxy S24 series, which outsold its predecessor. Furthermore, Samsung's proactive leadership in the AI narrative within the high-end market, positioning its AI capabilities as a key selling point for future premium products, further solidified its position in this segment.

Among the top five global smartphone vendors, vivo experienced the fastest revenue growth, with a 20% year-on-year increase, primarily driven by its strong performance in the domestic Chinese and Indian markets. The report shows vivo held the number one shipment ranking in both markets during 2024. Xiaomi led the top five with a 16% year-on-year shipment growth, attributed to its streamlined product portfolio, more affordable 5G offerings, and aggressive expansion across multiple markets. Additionally, Xiaomi's strong performance in the domestic high-end market and its foray into the automotive sector contributed to enhanced brand image and market competitiveness.

According to previous Counterpoint reports, the market share of the top five global smartphone vendors was: Samsung 19%, Apple 18%, Xiaomi 14%, OPPO and vivo each at 8%.

In conclusion, the global smartphone market, after a period of stagnation, experienced a recovery in 2024, with the potential for continued warming. The high-end trend, renewed consumer confidence, and the ongoing development of 5G and AI technologies will continue to propel the global smartphone market in a positive direction. The 2024 market performance provides direction for global smartphone vendors in 2025 and beyond, with high-end focus, differentiation, and technological innovation becoming crucial for competition. Apple maintained strong profitability with its high-end strategy, while Samsung offset shipment declines through AI leadership in the high-end market and the success of the Galaxy S24 series. Vivo and Xiaomi achieved significant revenue growth through success in different market segments. These successes offer valuable lessons for other smartphone vendors, suggesting a future marked by intensified yet vibrant competition. Sustained technological innovation, precise market positioning, and a deep understanding of consumer needs will be critical to the success of smartphone vendors.

It's important to note that while Counterpoint's data and analysis provide valuable insights, the market is dynamic and future developments remain uncertain. Changes in the macroeconomic environment, geopolitical risks, and fluctuating consumer preferences could all impact the smartphone market. Therefore, vendors must closely monitor market trends and adapt their strategies to remain competitive. The future smartphone market will be a complex interplay of technological innovation and market strategy; only those who can adapt quickly and continuously improve their competitiveness will ultimately succeed. This requires greater investment in product development and technological innovation, as well as efforts in marketing, brand building, and channel expansion, to stand out in an increasingly complex market environment. The global smartphone market is undergoing a critical period of transformation and upgrading; the future is full of opportunities and challenges, and the ultimate winners will be those with the most strategic vision and execution capabilities.

The global smartphone market showed positive signs of recovery in 2024, with high-end trends, technological innovation, and renewed consumer confidence driving growth. However, market competition remains intense, and vendors need to continuously monitor market dynamics and adjust strategies to achieve greater success in the future. This requires vendors to make comprehensive improvements in product development, marketing, and channel building to remain competitive in a challenging market environment. The 2024 market performance provides important insights into the future development of the smartphone market, and suggests that the future smartphone market will present a more diverse and personalized development trend.

This recovery is not simply a rebound but the result of numerous contributing factors. Counterpoint's report is just one of many market research reports, but it clearly illustrates the overall trend of the global smartphone market in 2024, providing a valuable perspective for understanding this complex market. In the future, we will see more technological innovation, more market competition, and more exciting smartphone products.