Smartphone Shipments To Increase By 5% In 2024, GenAI To Fuel The Growth

Global smartphone shipments are expected to climb by 5 per cent year on year in 2024, reaching 1.23 billion devices, according to Counterpoint's analysis. This updated prediction, which is higher than the previously expected growth rate of less than 4 per cent, reflects stronger macroeconomic conditions and increased consumer sentiment in key countries such as Latin America, Southeast Asia and Eastern Europe.

After two years of straight decreases, the worldwide smartphone market is set to rebound, aided by a combination of improving economic indicators and increased consumer confidence. The expected rise, as noted by Counterpoint's Market Outlook Service, indicates a recovery trajectory for the industry.

According to Associate Director Liz Lee, both emerging markets and mature economies will continue to thrive. "In the longer term, we expect to see a steady increase in the overall installed base of smartphones, primarily driven by emerging markets such as the Middle East and Africa (MEA), the Caribbean and Latin America (CALA), India and Southeast Asia," Lee continued "Even North America and Europe, despite being more replacement-oriented markets, will contribute to growth, with key mature markets like China, Japan and South Korea adding to the revenue stream through an increasing mix of high-value smartphones."

GenAI Technology Expected To Boost Market Share Of Advanced Smartphones

The predicted increase in usage of GenAI-based devices will be a primary driver of this growth. Senior Analyst Harmeet Singh Walia noted that as consumer awareness and demand for GenAI features grow, the proportion of GenAI-capable smartphones is expected to increase from less than 20 per cent in 2024 to more than 50 per cent by 2028. Apple's upcoming models, which use its AI technology known as Apple Intelligence, are expected to play a critical part in this transformation, perhaps establishing Apple as the worldwide smartphone shipments leader by 2025.

Foldable Smartphone Segment To See Growth, With Apple’s Future Entry Anticipated

Chinese OEMs like as Huawei, HONOUR and Motorola are projected to drive growth in the foldable smartphone market. Apple's projected entry into the foldable market by 2027 is likely to energise this segment and boost to the overall growth momentum.

Steady Upgrades And New Technologies Shape The Industry's Future

Counterpoint's estimate also reflects upon the continuous necessity of incremental upgrades from LTE to 5G in emerging markets, which will support long-term smartphone market development. Despite continued geopolitical concerns in Europe and the Middle East, the smartphone industry's bright outlook is fuelled by technological improvements and shifting consumer tastes. The incorporation of GenAI features, as well as the extension into new form factors such as foldables, are expected to reshape market dynamics in the next years.