A recent report from Counterpoint Research’s Market Pulse indicates that the global smartphone industry experienced a significant recovery in 2024. According to preliminary data, Samsung maintained its lead in smartphone shipments, showcasing robust demand for its devices throughout the year.
A Welcome Industry Rebound
Following two challenging years of decline, the smartphone market saw a 4% year-on-year growth in 2024. This marked a turnaround from 2023, which recorded the lowest sales figures in a decade. Analysts attributed the resurgence to improved macroeconomic conditions that fueled consumer demand and positively impacted perceptions of smartphone products.
Counterpoint Research’s Tarun Pathak called 2024 a pivotal year for the sector’s recovery, stating:
“Smartphones remain indispensable in daily life. As economic pressures eased, the market began to recover, with consistent growth observed from Q4 2023 and continuing for five consecutive quarters. Almost all regions experienced gains, led by Europe, China, and Latin America.”
Technological Advancements Boost Demand
One of 2024’s key highlights was the integration of Generative AI (GenAI) capabilities into smartphones. Though currently exclusive to high-end devices, this feature is expected to become more widely available by 2028. Premiumization also played a significant role in driving revenue growth, with ultra-premium models priced above $1,000 seeing the fastest sales growth. Subsidies in developed markets and affordable financing in emerging economies further fueled demand.
Looking ahead to 2025, analysts project that the rising popularity of premium devices and AI-enabled features will sustain momentum. The report predicts an 8% revenue increase year-on-year, outpacing a 4% growth in sales volume, as higher device prices continue to lift overall market revenues.
Samsung Reigns Supreme
Samsung solidified its position as the global market leader in 2024, driven by strong demand for its Galaxy S24 and A-series models. The Galaxy S24 series, notable for its AI-centric features, outperformed its predecessors, particularly in Western Europe and the United States.
With an 18% market share, Samsung outpaced Apple, which held the second spot. Apple experienced steady growth in emerging markets like Latin America, Africa, and Asia-Pacific but faced challenges with its iPhone 16 series. Mixed feedback stemmed from the limited availability of Apple Intelligence at launch.
Senior Analyst Ivan Lam noted:
“While iPhone sales declined overall, consumers shifted to Apple’s high-end models, which helped offset some of the losses. For example, in China, the Pro and Pro Max accounted for over half of all iPhone sales by the end of 2024.”
Apple and Chinese Competitors
Apple faced competition from Android rivals in 2024, with its market share slipping to 18% and sales declining by 2% year-on-year. Despite these challenges, the company continued to innovate in artificial intelligence, gradually introducing AI features like writing assistance and image generation. However, the roll-out of these features has yet to reach China, where Apple is working to secure local partnerships for implementation.
Meanwhile, Chinese smartphone manufacturers are accelerating the development of their own AI-powered tools. Brands such as Huawei, Honor, and Lenovo-owned Motorola were among the fastest-growing players in 2024, leveraging AI advancements to enhance their offerings.
Industry Outlook
With technological innovations and premium devices driving growth, the global smartphone market appears poised for continued recovery. Companies like Samsung and Apple are pushing boundaries with new features and strategic initiatives, while emerging brands strive to capitalize on AI’s transformative potential. As 2025 unfolds, competition in the smartphone industry is set to intensify, shaping a dynamic landscape for both manufacturers and consumers.
