Global Smartphone Market Sees Patchy Recovery
Global smartphone sales are bouncing back in 2024 following two consecutive years of decline, but the recovery is uneven. Apple’s sales growth lagged behind the overall market, while rivals using Google’s Android operating system are gaining ground, especially in China and emerging markets.
Modest Growth Amidst Uneven Recovery
Overall, vendors are expected to ship 6% more smartphones in 2024 — an estimated 1.24 billion while Apple’s sales are projected to increase by a mere 0.4%. Despite this slower growth, Apple remains the profit leader due to its high average selling price, which hovers above $1,000, compared to around $295 for Android devices, according to market tracker IDC.
Android Rivals Chip Away at Apple’s Market Share
Much of the growth in 2024 comes from pent-up demand and regions with low smartphone penetration. Affordable devices from Android vendors have helped Chinese brands take advantage of this growth, says IDC. More affordable devices from Android phone makers are helping Chinese brands capitalize on this opportunity, while Apple is expected to perform better next year.
Competitive Chinese Market Relies on Heavy Discounts
In the highly competitive Chinese market, where several companies vie for leadership every quarter, large and prolonged discounts have spurred sales. These discounts are having a bigger impact than in previous years, although concerns about China’s fragile economy persist.
AI Malware fails to Trigger Demand Boost
The addition of artificial intelligence (AI) enhancements, a prominent trend among companies like Samsung Electronics and Alphabet’s Google, hasn’t yet sparked excitement among consumers. According to Nabila Popal, research director at IDC, while GenAI remains a hot topic and a priority for many vendors, its impact on demand and early upgrades has been minimal.
“More investment is needed to raise consumer awareness and introduce ‘must-have’ features that will drive consumers to stores and create the sales boom everyone is hoping for,” Popal said.
To counter US sanctions and diversify their offerings, brands like Xiaomi and Huawei Technologies are heavily investing in hardware development
. Both companies are also working on their own processors, hoping to personalize designs for AI use cases.
Huawei showcase its latest smartphone equipped with
chips made in China on Tuesday (26th),. Xiaomi is preparing a
custom-designed semiconductor for devices
launching in 2025.
Slow Global Retreat Means Overall Stagnation
Globally, remittances haven’t yet bounced back to pre-pandemic levels. While IDC expects low single-digit growth in the coming years, market saturation in developed economies,– increasing time between device refresh cycles, and
the expanding secondhand smartphone market
are all contributing
to stagnation.
What is driving the difference in smartphone market growth between emerging and developed markets?
## Smartphone Recovery: A Patchwork Picture
**(Intro Music)**
**Host:** Welcome back to Tech Talk. Today we’re diving into the global smartphone market, which is showing signs of recovery after a tough couple of years. Joining us to break down the latest trends is industry analyst, [Guest Name]. Welcome to the show.
**Guest:** Thanks for having me.
**Host:** So, the overall picture seems positive – sales are up. But as the article mentions, this recovery isn’t uniform across the board. Can you elaborate on that?
**Guest:** Absolutely. While we’re seeing a 6% increase in smartphone shipments globally this year, that growth is largely driven by pent-up demand and emerging markets. In developed markets, growth is more sluggish. Apple, for instance, is only projecting a 0.4% increase in sales this year, which is significantly lower than the overall market growth.
**Host:** That’s interesting. And what’s driving that difference?
**Guest:** This year, we’ve seen a real surge in the popularity of affordable Android devices, particularly in China and other emerging markets. These devices are offering incredible value for money, allowing consumers to access advanced smartphone features without breaking the bank.
**Host:** So, are we seeing a shift in consumer preference?
**Guest:** It’s certainly a factor. While Apple maintains its position as the profit leader due to its high average selling price, the accessibility of Android devices is enabling a wider range of consumers to enter the smartphone market. This trend is likely to continue, especially with Chinese brands capitalizing on this opportunity and offering competitive discounts.
**Host:** So, it sounds like the competition is heating up. What does the future hold for Apple in this landscape?
**Guest:** Apple is expected to perform better next year. They’ve got loyal customers and a strong brand image. However, they’ll need to be mindful of the rapidly evolving market dynamics and perhaps explore ways to broaden their appeal to a wider range of consumers.
**(Outro Music)**
**Host:** Fascinating insights, [Guest Name]. Thanks for shedding light on these trends.
**Guest:** My pleasure. Thanks for having me.
