2024 Smartphone Growth: Apple, Samsung, and AI Disruption
Smartphone Market Expansion in 2024
The smartphone industry has witnessed remarkable growth in 2024, driven by demand for innovation and premium experiences. Consumers are shifting towards high-end devices featuring enhanced cameras, AI-powered functionalities, and faster processors. This shift has led to an increase in the average selling price, which has reached a record $356, marking a 5% revenue surge over the past year.
Global shipments saw a 4% increase, reversing a decline since 2021. The expansion of 5G technology and AI advancements played a significant role in driving this recovery. AI is now a key selling point, enhancing smartphone photography, app functionalities, and user experience.
As competition intensifies, brands are increasingly integrating AI innovations to differentiate their devices. With further developments expected in 2025, AI-driven features will shape the next generation of smartphones.
Apple Maintains Leadership in Sales
Apple continues to dominate the smartphone market, securing the highest sales volume. The iPhone 15 emerged as the best-selling smartphone of 2024, followed by the upcoming iPhone 16 Pro Max. Apple also held multiple positions in the top 10 best-selling devices, solidifying its influence in the industry.
The success of Apple’s Pro and Pro Max models has been notable, with an 11% increase in shipments compared to their predecessors. The iPhone 16 lineup has further contributed to Apple’s stronghold, maintaining consumer interest in premium devices.
With the upcoming iPhone models incorporating more AI-driven capabilities, Apple is expected to remain a leading player in the smartphone industry well into 2025.
Samsung Leverages AI to Strengthen Market Position
Samsung has also experienced growth, benefiting from AI-driven innovations within the Galaxy S24 series. The introduction of Galaxy AI, powered by Google’s advancements, has significantly enhanced Samsung’s smartphone capabilities.
The Galaxy A15 led Android smartphone sales, while the Galaxy A15 5G emerged as the top-selling 5G device. This demonstrates Samsung’s ability to compete in both premium and budget segments, securing a strong foothold in the global market.
With Samsung’s AI-driven improvements, including enhanced photography and processing power, its market presence remains competitive against Apple’s dominance.
Chinese Brands Disrupt the Market
Chinese smartphone manufacturers have also made a substantial impact, shaking up the competitive landscape. Vivo experienced a 20% revenue increase due to strong performances in China and India. Xiaomi, focusing on low-cost 5G models, saw a 16% rise in shipments as it expanded into Latin America and the Middle East.
TRANSSION, which includes brands like Infinix, TECNO, and iTel, secured the fourth position in global smartphone shipments for the first time. OPPO, including OnePlus, also experienced growth, with a 3% increase in total shipments.
These Chinese brands are rapidly advancing their market presence, particularly in emerging economies where affordable 5G smartphones are in high demand.
Smartphone Market Recovery After Decline
Following years of stagnation, the global smartphone industry experienced a major rebound in 2024. According to the latest Canalys report, total smartphone shipments grew 7%, reaching 1.22 billion units. This marked a significant turnaround after two consecutive years of decline.
Apple and Samsung maintained equal market shares of 18%, with Apple selling three million more units than Samsung. Despite a 1% decline in shipments for both brands, their dominance remained unchanged.
Xiaomi secured third place with 15% growth, shipping 168.6 million units, while TRANSSION and OPPO followed with strong shipment figures. This recovery highlights the growing demand for advanced mobile technology.
Premium Smartphones Drive Market Trends
Premiumization has been a defining trend in 2024, with high-end smartphones driving market growth. The iPhone 16 Pro and Pro Max models saw an 11% increase in shipments compared to their predecessors, surpassing 55 million units.
Samsung’s S24 series also performed exceptionally well, recording its highest sales since 2019. The Ultra model, in particular, gained massive popularity due to its premium features.
With AI and 5G advancements shaping consumer preferences, brands are investing heavily in premium smartphone models. The focus remains on delivering superior experiences to tech-savvy consumers.
Q4 2024 Market Performance
The final quarter of 2024 recorded a 3% year-over-year growth in global smartphone shipments, reaching 328.0 million units. The top five vendors for Q4 2024 included:
- Apple: 77.1 million units (23% market share)
- Samsung: 51.9 million units (16% market share)
- Xiaomi: 42.7 million units (13% market share)
- TRANSSION: 27.2 million units (8% market share)
- Vivo: 26.4 million units (8% market share)
These results reinforce the dominance of established brands while showcasing the rapid ascent of emerging smartphone manufacturers.
Future Trends: AI and 5G Expansion
Looking ahead, AI is expected to play an even bigger role in smartphone evolution. Manufacturers are integrating AI into various functionalities, from battery optimization to real-time photography enhancements.
The expansion of budget and mid-range 5G smartphones is also expected to drive market penetration, particularly in developing regions. This will enable more consumers to access advanced technology at affordable prices.
As competition continues to intensify, consumers will benefit from better devices with enhanced features and performance. The smartphone market is poised for further growth, driven by AI, 5G, and increasing consumer demand for premium experiences.
