In 2024, the global smartphone market experienced a 4% year-over-year growth, rebounding after two years of decline, as highlighted by Counterpoint Research.
Despite the market’s overall growth, Apple faced challenges. The company’s global smartphone sales decreased by 2% compared to the previous year, with its market share slipping by one percentage point to 18%. This decline is partly due to the mixed reception of the iPhone 16 series, which lacked anticipated artificial intelligence features at launch.
In the fourth quarter of 2024, Apple’s iPhone sales fell by 5%, reflecting intensified competition from Chinese manufacturers like Xiaomi. Xiaomi, for instance, increased its market share to 14% during this period.
However, Apple’s premium products, particularly the Pro series, have gained popularity, especially in markets like China. In Q4 2024, Pro and Pro Max devices accounted for over half of Apple’s smartphone sales in China, indicating a consumer shift towards ultra-high-end models.
The global smartphone market’s recovery is also linked to the introduction of generative AI (GenAI) capabilities in premium devices. While currently limited to high-end smartphones, it’s anticipated that by 2028, nine out of ten smartphones priced above $250 will feature GenAI capabilities.
Looking ahead, revenue growth in the smartphone industry is expected to outpace volume growth. In 2025, revenues are projected to grow by 8% year-over-year, compared to a 4% increase in volume. This trend is driven by the premiumization of smartphones and a growing consumer preference for ultra-premium devices priced above $1,000.
While the global smartphone market showed signs of recovery in 2024, Apple’s focus on premium products and the integration of advanced technologies like AI will be crucial in meeting evolving consumer demands in the coming years.
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All these smart phones have only incremental improvements each year. There's no reason for a person to upgrade every year anymore.
Agreed, I'm also cheap but my upgrade cycle has been iPhone 5 -> iPhone X -> iPhone 14 Pro. I honestly don't know when the next time I'll upgrade unless I'm forced too. What is the point? For me, the fancy AI capabilities isn't a reason to upgrade and the camera on the 14 is excellent.
Agreed, I'm also cheap but my upgrade cycle has been iPhone 5 -> iPhone X -> iPhone 14 Pro. I honestly don't know when the next time I'll upgrade unless I'm forced too. What is the point? For me, the fancy AI capabilities isn't a reason to upgrade and the camera on the 14 is excellent.