After two years of decline, global smartphone sales surged by 6.2% in 2024, reaching an estimated 1.24 billion units, according to IDC. However, Apple Inc. saw only modest growth, with iPhone shipments rising just 0.4%. Despite lagging in volume, Apple remains the profit leader, with its average selling price exceeding $1,000—more than triple the $295 average for Android-based rivals.
Much of the growth was driven by pent-up demand and increased sales in regions with low smartphone penetration. Android brands, particularly Chinese players like Xiaomi and Huawei, capitalized on this with more affordable devices and heavy discounts. Meanwhile, Apple faces stiff competition in China and other emerging markets but is expected to perform better in 2025.
Artificial intelligence (AI), a key focus for major brands including Apple, Samsung, and Google, has yet to drive significant upgrades. IDC’s Nabila Popal noted that while generative AI is a hot topic, it has not created the “must-have” feature needed to trigger a major sales cycle.
Chinese brands are investing heavily in designing in-house chips to enhance AI capabilities and reduce reliance on foreign technology. Huawei recently launched a smartphone powered by its domestically made chip, while Xiaomi plans to debut its own processor in 2025.
Globally, shipments remain below pre-pandemic levels, and IDC forecasts low-single-digit growth in the coming years due to market saturation, longer upgrade cycles, and a booming trade in used smartphones.