Global smartphone market rebounds, but Apple struggles amid Android surge

After two consecutive years of decline, the global smartphone market rebounded strongly in 2024, posting a 6.2% increase in shipments, according to a recent study by market tracker IDC.

However, Apple Inc., a market leader in profits, barely managed to grow its shipment volumes, highlighting the intensifying competition from Android-based rivals in key regions like China and emerging markets.

global smartphone shipments are estimated to reach 1.24 billion units this year, but Apple's growth in volume was a mere 0.4%, IDC reported. The iPhone maker continues to dominate profitability with an average selling price exceeding $1,000 per unit, compared to Android competitors, which averaged around $295.

Much of the market's 2024 growth stemmed from pent-up demand and the expansion into regions with lower smartphone penetration.

Affordable Android devices played a pivotal role, enabling Chinese brands like Xiaomi and Huawei to capitalize on these opportunities, while Apple is projected to perform better in 2025.

In response to mounting challenges, brands like Xiaomi and Huawei have been ramping up investments in hardware innovation and designing proprietary processors.

Huawei recently unveiled a smartphone powered by its in-house chips, while Xiaomi is working on its own semiconductor technology for a 2025 launch.

China's fiercely competitive market remains a battlefield, with brands trading the top spot quarter after quarter. Prolonged discounts in 2024 stimulated sales more effectively than in previous years, though lingering concerns about the country's economic health may tamper long-term growth.

Globally, the smartphone industry remains below pre-pandemic shipment levels, with IDC forecasting low-single-digit growth for the foreseeable future.

Factors like market saturation in developed economies, lengthening upgrade cycles, and a booming trade in refurbished devices are contributing to the slowdown.