The Global Smartphone Market in 2024: Premiumization Drives Revenue Growth, ASP Hits Record High

The Global Smartphone Market in 2024: Premiumization Drives Revenue Growth, ASP Hits Record HighThe global smartphone market in 2024 demonstrated robust growth, driven by a strong premiumization trend. According to Counterpoint Research, global smartphone revenue increased by 5% year-on-year, with the average selling price (ASP) also rising by 1% to reach $356 (approximately 2594 RMB), a historical high

The Global Smartphone Market in 2024: Premiumization Drives Revenue Growth, ASP Hits Record High

The global smartphone market in 2024 demonstrated robust growth, driven by a strong premiumization trend. According to Counterpoint Research, global smartphone revenue increased by 5% year-on-year, with the average selling price (ASP) also rising by 1% to reach $356 (approximately 2594 RMB), a historical high. This positive market performance stems from manufacturers' continued focus on the high-end market, increased consumer demand for premium devices, and rising overall input costs.

Counterpoint analyst Shilpi Jain noted that 2024 showcased several positive factors for the smartphone market, with both ASP and shipments increasing. Revenue growth consistently outpaced shipment growth, with ASP reaching a record high. This clearly reflects the booming high-end smartphone market and the success of manufacturers' high-end strategies. Looking ahead to 2025, Jain predicts that smartphone shipments may see single-digit growth, while ASP and revenue will continue to outpace shipment growth. The proliferation of low-cost 5G phones and the penetration of Generative AI (GenAI) technology into the mid-to-low-end market will be key trends to watch in 2025.

In 2024, different manufacturers showed varied performances. While Apple experienced a 3% year-on-year decline in shipments, its ASP continued to grow, surpassing $900 and setting another record. This underscores Apple's strong brand influence and pricing power in the high-end market. Notably, among the top five global smartphone manufacturers, vivo demonstrated strong growth, with a 20% year-on-year increase in global revenue, driven by its excellent performance in China and India. Crucially, vivo led shipments in these two key markets in 2024, showcasing its successful strategic positioning and market penetration.

In contrast to vivo, Xiaomi achieved the fastest growth among the top five brands, with a 16% year-on-year increase in global shipments in 2024. Counterpoint's report highlights Xiaomi's particularly strong performance in China's high-end market. Its successful foray into the automotive sector further enhanced its brand image, laying a solid foundation for future growth. Xiaomi's success validates the importance of diversification strategies in the competitive smartphone market. By expanding into new areas like automobiles, Xiaomi not only elevated its brand value but also created broader development opportunities in the smartphone market.

The growth in global smartphone revenue in 2024 wasn't solely reliant on the premium segment. While high-end phone ASPs significantly increased, growth in the low-end market was also noteworthy. The emergence of low-cost 5G phones effectively lowered the barrier to entry for 5G technology, allowing more consumers to enjoy the benefits of high-speed connectivity. This expanded the smartphone market size and provided manufacturers with a wider market space.

Looking forward, GenAI technology will play an increasingly important role in the smartphone market. Currently, GenAI is primarily featured in high-end smartphones, but as the technology matures and costs decrease, it's expected to become more prevalent in mid-to-low-end devices. This will bring more innovative features and applications to smartphones, further stimulating consumer demand and driving continued market growth. However, the widespread adoption of GenAI faces challenges such as data privacy and computational resource consumption, requiring collaborative efforts from manufacturers and relevant organizations.

In conclusion, the global smartphone market in 2024 exhibited positive growth, with premiumization as the primary driver. Apple and vivo achieved remarkable success in the high-end and mid-range markets respectively, while Xiaomi stood out through strong growth and diversification. Looking ahead, the proliferation of low-cost 5G phones and GenAI technology will be crucial factors driving continued market development. However, manufacturers need to closely monitor market changes and proactively address challenges to maintain a leading position in the fierce competition. The direction of the smartphone market in 2025 will depend on manufacturers' ability to seize opportunities and effectively manage challenges, providing consumers with more innovative and high-quality products and services. Counterpoint's data analysis provides valuable insights into current market trends and future directions. This data highlights the intensity of market competition and the smartphone industry's enduring innovative spirit. We have reason to believe that the global smartphone market will continue to thrive under technological advancements and evolving consumer demands. Future innovation and market strategy adjustments will be key determinants of manufacturers' market position and influence. Therefore, continuous market monitoring, active R&D, and market expansion are crucial for maintaining competitiveness. This is not just about manufacturers' profitability, but also about the long-term health of the entire smartphone industry. Only through continuous innovation and healthy competition can we bring better products to consumers, drive progress in smartphone technology, and ensure the sustainable development of the industry.