Caixin News March 28 (Editor: Zhuolin Niu) Market research firm Counterpoint Research released a report on Thursday showing that after more than two years of sluggishness, global smartphone shipments are expected to rebound by 3% in 2024.
Counterpoint stated in its report that easing inflation is helping to revive demand in emerging markets, while the incorporation of generative artificial intelligence (AI) is expected to attract high-end consumers.
Last year, global smartphone market shipments declined by over 4%, with emerging markets such as India, the Middle East, and Africa considered the main drivers of growth in the smartphone market. However, due to a series of uncertainties, consumers overall chose to cut back on spending.
The report predicts an 11% rebound in the mid-range smartphone market priced between $150 and $249 in 2024. With inflationary pressures easing and intensified competition among smartphone manufacturers, demand for budget smartphones is stimulated.
Shipments of high-end smartphones ($600-799) are expected to grow by 17%, driven by the proliferation of AI and foldable devices, sparking upgrade demand.
In January, Samsung officially launched the Galaxy S24 series smartphones, offering a variety of AI features on the Galaxy S24/S24+ to attract consumers.
Meanwhile, Apple has been in discussions with Alphabet's Google, OpenAI, and Anthropic. It's not ruled out the introduction of one or more AI large models in iOS 18 to provide generative AI chatbot functionality for the iOS system.
The report suggests that Apple and Huawei may continue to lead the growth in the high-end market. Stable demand for the iPhone, especially in emerging markets such as India, the Middle East, and North Africa, will drive growth in Apple's shipments.
Counterpoint expects Huawei to maintain its strong position in the Chinese smartphone market in 2024. With the release of 5G Kirin chips, the brand's market share continues to rise.
In the long run, with the market bottoming out, Counterpoint expects the annual growth rate of global smartphone shipments to remain in single digits.
Furthermore, market research firm Canalys also expects a 4% rebound in global smartphone shipments in 2024, driven by emerging markets.
However, Canalys analyst Runar Bjørhovde warned that the impact of AI features on mobile devices in 2024 on driving upgrades to high-end smartphones will be limited, with smartphones equipped with advanced AI chipsets accounting for less than 5%.
