Smartphone markets set to bounce back in 2024

Global smartphone shipments are poised to rebound by 3% in 2024, as per a report by Counterpoint Research, fueled by a resurgence in demand in emerging markets and the integration of generative AI in premium devices.

The report highlights a decline of over 4% in global shipments last year, attributed to consumer caution amidst economic uncertainties. However, the easing of inflation is expected to drive a recovery, particularly in regions like India, the Middle East, and Africa, which are anticipated to be key growth catalysts, especially for budget smartphones.

The budget segment, projected to expand by 11% this year after a contraction in 2023, is anticipated to witness increased demand in regions like the Caribbean and Latin America. Phones priced between USD 150PHP 8,803INR 12,712EUR 143CNY 1,092 and USD 249PHP 14,613INR 21,103EUR 237CNY 1,812 are likely to benefit from improved economic conditions and currency stabilization in areas such as Africa.

Rising competition among Chinese manufacturers like Oppo, Vivo, and Xiaomi, coupled with a resurgence in IT device demand, is contributing to growth in the budget segment.

Meanwhile, the premium smartphone segment, encompassing devices priced between USD 600PHP 35,211INR 50,850EUR 571CNY 4,367 and USD 799PHP 46,890INR 67,715EUR 761CNY 5,815, is expected to surge by 17%.

The adoption of advanced generative AI technology and the growing popularity of foldable phones are driving demand in this category.

Apple and Huawei are anticipated to emerge as key players in the premium market, with Apple expected to leverage steady demand for iPhones in emerging markets. Huawei, bolstered by the release of its 5G Kirin chipset, is set to maintain its stronghold in China.

Earlier estimates by Counterpoint suggested a 24% decline in iPhone sales in China due to competition from Huawei.

Additionally, reports indicate that Apple is exploring the integration of Google’s Gemini AI engine into the iPhone, further highlighting the evolving dynamics of the smartphone market.