IDC: Smartphone market to see a big rebound in 2024, with Apple (AAPL.US) struggling
1min read A study by market tracker IDC showed that global smartphone sales rebounded strongly in 2024 after two years of decline, but Apple AAPL.US barely grew, highlighting the pace of progress by Android-based rivals in China and emerging markets.IDC said shipments of phones from Apple and its rivals would grow 6.2 per cent to 1.24bn units in 2024. But iPhone volumes may only rise 0.4 per cent. However, Apple is estimated to remain the leader in terms of profitability, with an average selling price of more than $1,000, compared with about $295 for Android rivals.The smartphone market, though buoyed by artificial intelligence, has seen a sharp decline in the “post-Covid era” and its recovery has been uneven, with much of the growth in 2024 coming from pent-up demand and low smartphone penetration, according to IDC. Android vendors’ more affordable devices have helped Chinese brands better capitalise on the opportunity, while Apple is expected to do better next year.Adding AI-enhanced features was a big theme at companies such as Samsung Electronics, Apple and Google, but failed to excite consumers.“While generative AI remains a hot topic and top priority for many vendors, it has yet to have a significant impact on demand and drive early upgrades,” said Nabila Popal, research director at IDC. “More investment is needed to raise consumer awareness and introduce ‘must-have’ features that will drive consumers into stores and create the super cycle everyone is waiting for.”Global smartphone shipments have yet to recover to pre-pandemic levels, and IDC expects growth to be in single digits in the coming years. Longer upgrade cycles, saturation in developed economies and the rapid growth of the trade in second-hand smartphones are seen as the main factors behind the stagnation.