The global smartphone market will pick up in the quarter of 2024
After several consecutive quarters of decline, the global smartphone market finally ushered in a rebound in the 2024 quarter. The rebound was driven by a recovery in demand from emerging markets and innovation in high-end models.
The economic recovery in emerging markets and the increasing purchasing power of consumers have injected new vitality into the smartphone market. In regions such as Africa, the Middle East and Latin America, the stability of local currencies and the easing of inflationary pressures have led to a resurgence of consumer demand for low- and mid-range smartphones. This creates favorable conditions for the expansion of Chinese brands such as Xiaomi, OPPO and Transsion Group in these markets. With a strong presence in emerging markets, these brands continue to launch products that meet the needs of local consumers and stimulate market demand through fierce competition.
The high-end smartphone market is also showing strong growth momentum. Flagship models from brands such as Apple and Huawei have attracted a lot of consumers with their innovative hardware and software features. Apple's iPhone lineup has performed particularly well in India and the Middle East and Africa, becoming a major driver of growth in the premium segment. In the Chinese market, Huawei's Mate 60 series has successfully won back some high-end users with its self-developed 5G chips.
In addition to brand competition, the application of new technologies has also brought new growth momentum to the smartphone market. Artificial intelligence (the integration of AI technology has driven the upgrade of high-end models, bringing users new experiences such as real-time voice translation, web pages, and note-taking. Innovative forms such as foldable mobile phones have also attracted the attention of many consumers and injected new vitality into the industry.
The global smartphone market is expected to maintain low-single-digit growth. The continued rise in average selling prices and the acceleration of the premiumization trend will further boost the profitability of the industry. Artificial intelligence will become the new focus of competition for mobile phone manufacturers, and who can better integrate AI technology into products and services will determine the future market pattern.
Sustainability and eco-friendliness will also influence product design and marketing strategies. Consumers' pursuit of energy conservation and environmental protection will prompt manufacturers to make corresponding adjustments in product development and supply chain management. The data for the first quarter of 2024 shows that the global smartphone market is coming out of the trough and ushering in a new round of growth. Major brands are redistributing market share through innovation and differentiation strategies, while emerging markets and new technologies will be key drivers for future growth.
Key brand performance
In the smartphone market in the 2024 quarter, the performance of major brands such as Samsung, Apple, Xiaomi, OPPO and Transsion is worth watching.
Samsung regained the top spot in global shipments with the strong performance of its flagship Galaxy S24 series. According to Counterpoint Research, global sales of the Galaxy S24 series increased by 8% year-on-year in the first three weeks after its release, including 14% in the United States and 28% in Western Europe.
The popularity of the Galaxy S24 series is largely due to Samsung's innovation in hardware and software. As one of the first flagship models to be equipped with artificial intelligence capabilities, the Galaxy S24 series has undoubtedly attracted many consumers by bringing users a new experience such as real-time voice translation, web pages, and notes.
Apple has encountered a certain level of challenge in the Chinese market. According to the UBS report, in the first two months of 2024, Apple's iPhone sales in China fell by 16% year-on-year. This is mainly due to the strong counterattack of domestic brands such as Huawei, Xiaomi, OPPO and vivo in the domestic market. With the strength of the high-end product line, Apple still maintains the leading position in the global smartphone revenue share.
Chinese brands such as Xiaomi, OPPO and Transsion are also performing well in emerging markets. With a deep understanding of the local market and a continuous introduction of products that meet the needs of local consumers, they have seen significant growth in regions such as Africa, India and Southeast Asia.
The smartphone market in the quarter of 2024 is full of flowers. Brands are redistributing market share through differentiated product strategies and marketing tools. Innovation and localization will be the key words of the future competition, and whoever can better grasp the needs of consumers will be able to stand out in this fierce competition.
Market drivers
The recovery of the global smartphone market in the quarter of 2024 is mainly driven by the following key drivers:
The economic recovery in emerging markets and the increasing purchasing power of consumers have injected new vitality into the smartphone market. In regions such as Africa, the Middle East and Latin America, the stability of local currencies and the easing of inflationary pressures have led to a resurgence of consumer demand for low- and mid-range smartphones. This creates favorable conditions for the expansion of Chinese brands such as Xiaomi, OPPO and Transsion Group in these markets.
The integration of artificial intelligence (AI) technology has driven the evolution of high-end models, bringing new experiences such as real-time voice translation, web pages, and note-taking. Flagship models such as the Samsung Galaxy S24 series and Apple's iPhone 15 series are optimized at the hardware and software level to support the smooth operation of these AI features.
Innovative forms such as foldable mobile phones have also attracted the attention of many consumers and injected new vitality into the industry. Brands such as Samsung, Huawei, OPPO and Xiaomi have launched their own foldable flagship models, which not only have innovative form factor designs, but also improve in terms of hardware configuration and user experience, thus attracting many fashionable and innovative consumers.
The continued adoption of 5G technology has also brought new growth momentum to the smartphone market. With the continuous improvement of 5G networks, more and more users are beginning to experience the advantages of high speed and low latency brought by 5G, which further stimulates the demand for 5G mobile phones.
Fierce competition between brands is also an important factor driving the market recovery. Brands are redistributing market share through differentiated product strategies and marketing tools. Innovation and localization will be the key words of the future competition, and whoever can better grasp the needs of consumers will be able to stand out in this fierce competition.
The recovery of the smartphone market in the first quarter of 2024 is the result of a combination of factors. The resurgence of demand in emerging markets, the application of new technologies, the emergence of innovative forms, and the competition between brands have all injected new vitality into the market. These drivers will continue to drive the industry forward, bringing more innovation and change.
Industry development trends
The global smartphone market is expected to maintain low-single-digit growth. This trend is mainly influenced by the following factors:
The rising average selling price and the acceleration of the premiumization trend will further boost the profitability of the industry. As consumers become more reliant on smartphones, they are more willing to pay for high-end products for better performance and experience. This will push manufacturers to invest more in high-end models, which will increase the overall average selling price level.
Artificial intelligence will become the new focus of competition for mobile phone manufacturers. Who can better integrate AI technology into products and services will determine the future market landscape. We've seen brands like Samsung, Apple, and Google aggressively expand into the AI space, introducing innovative features such as real-time voice translation, web pages, and note summarization. AI technology will further penetrate every aspect of mobile phones, from taking photos to gaming experiences, there will be revolutionary changes.
Sustainability and eco-friendliness will also influence product design and marketing strategies. Consumers' pursuit of energy conservation and environmental protection will prompt manufacturers to make corresponding adjustments in product development and supply chain management. Our smartphones of the future will be more energy-efficient and material-sustainable, as well as more environmentally friendly packaging and transportation.
The development of 5G and post-network technologies will also bring new opportunities for smartphones. With the continuous improvement of 5G network and the gradual arrival of 6G technology, the performance and functions of mobile phones will be revolutionized, thereby promoting the upgrading of users.
The growth of emerging markets will also become an important driving force for the development of the industry. As the economies and middle classes in these regions continue to grow, the demand for smartphones will continue to climb. Manufacturers need to have a deep understanding of the local market and launch products that meet local needs in order to get a piece of the pie in these markets.
Although the smartphone market has entered a relatively mature stage, there are still many opportunities for growth. The application of new technologies, the promotion of sustainable development concepts, and the rise of emerging markets will bring new vitality to the industry. Whoever can seize these opportunities will be able to occupy an advantageous position in the future competition.