In a recent report by Counterpoint Research, the outlook for the global smartphone market in 2024 appears promising with an anticipated 3% rebound in shipments. This resurgence comes on the heels of a more than 4% decline in shipments last year reflecting a challenging period for the industry amidst economic uncertainties.
One of the key drivers of this anticipated growth is the easing inflation particularly in emerging markets which is expected to stimulate demand. Regions such as India, the Middle East and Africa are positioned as significant growth markets especially for the budget-economy segment.
The budget segment comprising phones priced between $150 and $249 is projected to experience an 11% growth in 2024 following a contraction in the previous year. Factors such as stabilizing local currencies and increased competition among Chinese companies like Oppo, Vivo and Xiaomi are poised to fuel this expansion.
Moreover, the integration of generative Artificial Intelligence (genAI) is set to allure consumers towards premium devices. The premium segment encompassing phones priced between $600 and $799 is forecasted to grow by 17%. Innovations such as genAI technology and the popularity of foldables are anticipated to drive demand in this category.
In this competitive landscape, industry giants Apple and Huawei are expected to emerge as winners in the premium market. Apple is anticipated to capitalize on steady demand for iPhones particularly in emerging markets while Huawei is likely to maintain its stronghold in China bolstered by the release of its 5G Kirin chipset.
However, the market dynamics also present challenges. Competition from Huawei has exerted pressure on iPhone sales in China resulting in a 24% decline in the first six weeks of 2024. Nonetheless, industry reports suggest that Apple is exploring strategic collaborations such as integrating Google’s Gemini AI engine into the iPhone to enhance its offerings and market position.
Overall, the global smartphone market is poised for a resurgence in 2024, driven by factors such as easing inflation, technological innovations and evolving consumer preferences. As the industry continues to navigate challenges and opportunities, stakeholders must adapt to dynamic market conditions to thrive in the ever-evolving landscape.
