After two years of consecutive declines, the global smartphone market is finally bouncing back. In 2024, smartphone OEMs worldwide achieved a 4% year-over-year growth, signaling the first positive momentum since 2023, a year marked by the lowest demand in a decade.
Key Drivers of Growth: AI Features and Economic Recovery
Analysts from Counterpoint attribute this resurgence to two main factors:
- Easing economic pressures globally.
- The widespread adoption of AI-powered features, which have sparked renewed interest in smartphone upgrades.
Europe, China, and Latin America led the recovery, with all major regions showing a positive trend.
Market Leaders: Samsung and Apple at the Helm
Samsung maintained its top spot with a 19% market share, driven by robust demand for the Galaxy S24 series and select A-series models. Western Europe and the US were standout regions for Samsung, further solidifying its dominance.
Apple secured second place but faced a 2% decline in sales in 2024, attributed to the underwhelming performance of the iPhone 16 series. However, the premium iPhone 16 Pro and 16 Pro Max models performed exceptionally well, boosting revenue despite fewer units sold. This mirrors a growing market trend toward premium devices, as the $1,000+ price bracket experienced the fastest growth last year.
Emerging Players and Trends
Xiaomi saw a 12% surge in sales, maintaining its third-place position in the global rankings. vivo followed closely with a 9% increase, while OPPO faced an overall 8% decline but gained momentum in late 2024.
What Lies Ahead?
Despite the positive trends, analysts caution against expecting a full recovery to pre-pandemic sales levels in 2025. The global market is on the mend, but lingering uncertainties suggest that a return to peak performance may take longer than anticipated.
With premium smartphones driving revenue growth and innovation continuing to attract consumers, the industry is at a turning point. Will 2025 build on this momentum, or will the recovery stall?