After 2 years the smartphone market sees growth

Counterpoint Research reports that the smartphone sector has finally achieved annual growth after two years of contraction. It stated that 2023 was the worst year in the preceding decade, but that due to macroeconomic improvements, the industry will resume development in 2024.

“2024 was a year of recovery and normalization after a difficult 2023. Smartphones continue to be an essential product, pivotal to people’s daily lives, and as macroeconomic pressures softened, the market started showing signs of recovery from Q4 2023 and has now grown for five consecutive quarters,” said Tarun Pathak, Research Director at Counterpoint. “Almost all markets showed growth, led by Europe, China and Latin America.”

Xiaomi was the fastest-growing company between 2022 and 2024, growing at 12% per year. This success was attributed to portfolio realignment, a focus on luxury devices, and aggressive expansion initiatives. Oppo was the worst performer, down 8% year on year.

The top five smartphone manufacturers are Samsung (19%), Apple (18%), Xiaomi (14%), Oppo (8%), and Vivo. The Others group now stands at 33%, up from 30% in 2022.

Aside from presenting facts on the sector's growth, Counterpoint also made a forecast about generative AI for mobile devices. According to the report, AI smartphones will be available in 2024, but only in the premium segment. It estimates that by 2028, the technology would be widely available in the mid-range category, with AI capabilities found in nine out of 10 smartphones priced about $250.

Hopefully, the segment will be able to maintain its growth in the future years as the world recovers from COVID-19 and rising inflation.