The global smartphone market experienced a long-awaited recovery in 2024, achieving 4% year-on-year growth after two consecutive years of decline.
This is according to preliminary data from Counterpoint Research’s Market Pulse, which shows that the South Korean device maker, Samsung led other manufacturers in terms of smartphone shipments for the year.
This growth comes as macroeconomic conditions improve, boosting consumer sentiment and driving demand. Smartphone sales in 2023 had hit their lowest point in a decade.
Commenting on the rebound, Tarun Pathak, Research Director at Counterpoint Research, highlighted that 2024 marked a pivotal year of recovery for the industry.
“2024 was a year of recovery and normalization after a difficult 2023. Smartphones continue to be an essential product, pivotal to people’s daily lives.
“As macroeconomic pressures softened, the market started showing signs of recovery from Q4 2023 and has now grown for five consecutive quarters. Almost all markets showed growth, led by Europe, China, and Latin America,” he said.
Samsung’s market leadership
Samsung retained its position as the global market leader in 2024, driven by robust demand for its Galaxy S24 and A-series devices.
- The Galaxy S24 series, Samsung’s first AI-centric smartphone, outperformed previous iterations and was especially popular in Western Europe and the U.S.
- Apple followed in second place, with an 18% market share, though its iPhone 16 series received mixed feedback due to the limited availability of Apple Intelligence at launch. Despite challenges, Apple grew strongly in emerging markets, including Latin America, Africa, and Asia-Pacific.
Ivan Lam, Senior Analyst at Counterpoint Research, commented, “iPhone sell-through was down, but consumers are pivoting to Apple’s ultra-high-end models, helping to offset some of the declines. In China, for instance, the Pro and Pro Max devices accounted for over half of all iPhone sales by the end of 2024.”
- Among the top five brands, Xiaomi posted the fastest growth, leveraging a realigned portfolio and aggressive premium-focused expansion strategies.
- OPPO took fourth place despite a YoY decline, while vivo rounded out the top five, supported by strong performance in China and India.
- Competition intensified with brands like Huawei, HONOR, and Motorola, identified as the fastest-growing OEMs among the top 10, chipping away at the top players’ market share.
The rise of GenAI and premiumization
The introduction of Generative AI (GenAI) capabilities in smartphones marked a technological milestone in 2024.
- Although currently limited to premium devices, GenAI features are expected to penetrate mid-range models by 2028.
- Analysts predict that by then, nine out of ten smartphones priced above $250 will be GenAI-enabled.
- At the same time, premiumization drove market revenues higher. Sales of ultra-premium devices priced above $1,000 grew the fastest in 2024, buoyed by subsidies in developed markets and the availability of low-cost financing options in emerging economies.
Outlook for 2025
While global smartphone sales are unlikely to return to their pre-pandemic peak volumes, revenues are projected to keep rising due to higher average selling prices.
Counterpoint Research expects revenue growth of 8% YoY in 2025, outpacing the forecasted 4% volume growth.
The market’s recovery, coupled with the increasing demand for premium and AI-enabled devices, sets the stage for continued innovation and competition in the years ahead.
