The global smartphone market is recovering while Apple is lagging behind. Despite AI, consumers seem to be only partially enthusiastic about new devices.
• Apple is lagging behind
• Chinese brands benefit
• AI remains a trending topic
After two years of declining sales, the global smartphone market posted impressive growth this year. But while the industry as a whole grew by 6.2 percent, Apple struggled with minimal growth of just 0.4 percent, according to data from market researcher International Data Corporation (IDC). The competition from Android devices, especially in China and emerging markets, is likely to become ever stronger.
Recovery with obstacles: Apple is losing ground
According to a study by IDC, around 1.24 billion smartphones were shipped worldwide in 2024. While the entire industry benefited from pent-up demand and growing smartphone penetration in developing countries, Apple’s success remained limited. Although the iPhone manufacturer remains the clear profit leader with an average selling price of over $1,000, Android devices score with more affordable prices of an average of $295, according to IDC.
Chinese brands like Huawei and Xiaomi would use this price advantage to gain market share. Particularly in China, where competition is extremely fierce and several brands regularly change market leadership, strong price discounts have increased sales. Apple’s comparatively high-priced models, however, were less popular in these markets, according to IDC.
AI offers potential
Although the integration of Generative Artificial Intelligence (GenAI) is a trending topic among manufacturers such as Apple, Samsung and Google, it has so far failed to stimulate consumers’ willingness to buy, according to Nabila Popal, head of research at IDC: “Although GenAI continues to be a hot topic and for is a top priority for many providers, it has not yet significantly influenced demand and driven early upgrades,” YahooFinance quoted her as saying in this context. “Further investment is needed to raise consumer awareness and introduce a ‘must-have’ feature that will attract consumers to stores and start the super cycle everyone is waiting for,” she explains.
However, some Android manufacturers are specifically focusing on innovations: Huawei recently introduced a smartphone with its own processors produced in China, while Xiaomi is probably planning to bring a device with its own chip onto the market next year. These strategies are intended not only to address the challenges posed by US sanctions, but also to improve the integration of AI applications, as YahooFinance reports.
Market saturation and used equipment as brakes on growth
Despite the growth in 2024, the industry would initially remain away from “pre-pandemic levels”. IDC only expects single-digit growth in the coming years. The reasons for this are the longer intervals between device changes, market saturation in industrialized countries and the booming trade in used smartphones. Because: In a world that is increasingly focusing on sustainability, consumers are more willing to use second-hand devices instead of buying new models, according to IDC.
While the global smartphone market showed initial signs of recovery in 2024, individual providers are still likely to face challenges. Apple, as the profit leader and still at the top, is likely to face growing competition from inexpensive Android models, especially in emerging markets. At the same time, it will remain exciting to see whether and to what extent the integration of AI might offer an opportunity to attract and delight consumers in the long term. However, solutions may be necessary to encourage consumers to buy new devices again.
Editorial team finanzen.net
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