AI is the hot new selling point, not foldables.
The global smartphone market is finally rebounding after two challenging years of decline. According to reports from Counterpoint, Canalys, and IDC, 2024 marked a return to growth, fueled by rising sales from Chinese manufacturers such as Xiaomi and Vivo. Meanwhile, Apple and Samsung remain locked in a fierce battle for the top spot, maintaining their positions as the industry’s undisputed leaders.
A Year of Recovery
Counterpoint reports a 4% increase in global smartphone sales in 2024, with IDC and Canalys estimating even stronger growth of 6-7% in worldwide shipments. This recovery comes after a dismal 2023, which saw the lowest smartphone sales figures in a decade. Industry analysts predict this growth trend will persist through 2025.
“2024 was a year of recovery and normalization after a difficult 2023,” explains Tarun Pathak, research director at Counterpoint. “The market started showing signs of recovery in Q4 2023 and has now grown for five consecutive quarters.”
The Apple-Samsung Showdown
There’s some debate about who claimed the title of top smartphone seller in 2024. Counterpoint reports that Samsung edged out Apple in terms of market share for the year. However, IDC and Canalys each crown Apple as the leader. Regardless of who’s on top, both tech giants maintained a commanding presence, bolstered by their loyal customer bases and premium product offerings.
Xiaomi’s Meteoric Rise
Xiaomi is the clear standout among the competition, achieving a remarkable 12% increase in unit sales, according to Counterpoint. This growth cements Xiaomi’s position as the third-largest smartphone manufacturer globally, with a market share of 14% for 2024. The brand’s success brings it closer to Apple’s 18% share, signaling a tightening race among the major players.
Other Players Making Waves
While Xiaomi leads the charge among Chinese manufacturers, other brands like Oppo (including OnePlus), Vivo, and the Transsion group are also making significant strides. These companies saw robust growth in regions like Asia, Europe, Africa, and Latin America, where demand for affordable yet feature-rich smartphones continues to surge.
The AI Revolution in Smartphones
A key driver of 2024’s recovery was the advent of smartphones marketed as AI-powered devices. Counterpoint and IDC both attribute the market’s bullish performance to this shift, with AI features rapidly replacing foldable screens as the industry’s latest innovation.
“We have seen a decreased demand for foldables in the market, despite intensified promotions and marketing,” says IDC research director Anthony Scarsella. Manufacturers are now “prioritizing new AI advancements at the expense of foldables.” Counterpoint predicts that by 2028, nine out of ten smartphones priced above $250 will feature generative AI capabilities.
What’s Driving Consumer Interest in AI?
The appeal of AI in smartphones goes beyond novelty. From enhanced photography to personalized recommendations and real-time language translation, AI-powered features are becoming integral to everyday use. These advancements promise to redefine the smartphone experience, making devices smarter and more intuitive than ever before.
Challenges for Foldables
In contrast, the foldable segment is struggling to gain traction. Despite aggressive marketing efforts, consumer interest in foldables has waned. The devices’ high price points, durability concerns, and limited utility compared to traditional smartphones have hindered widespread adoption.
Looking Ahead to 2025
As the smartphone market moves into 2025, several trends are worth watching. The continued rise of AI integration will likely dominate product roadmaps, while competition among market leaders intensifies. Xiaomi’s aggressive push for market share could challenge the dominance of Apple and Samsung, especially if the brand continues to expand its presence in premium segments.
Meanwhile, emerging markets in Africa, Latin America, and Southeast Asia are expected to drive further growth for brands like Vivo, Oppo, and Transsion, which have tailored their offerings to meet local demands.
Conclusion
The global smartphone industry’s return to growth in 2024 has set the stage for an exciting year ahead. With Apple and Samsung neck-and-neck, Xiaomi’s rapid ascent, and the rise of AI-powered devices, the competitive landscape is evolving quickly. As innovation continues to reshape the market, one thing is clear: the smartphone sector is entering a new era of growth and transformation.
