IDC is reporting that the smartphone market is expected to grow by 5.8% YoY in 2024 to 1.23 billion units after the first quarter of 2024 saw 12% growth and the second quarter saw 9% growth. The interesting thing is that Android is expected to grow by 7.1% in 2024, nine times faster than iOS with only 0.8% growth.
The main drivers of growth in the market are Android’s strong performance in China and emerging markets. Apple’s growth is tempered by competition in China and a higher comparison base from previous years. The company’s future growth may depend on the success of its GenAI and local AI partnerships in China.
GenAI smartphones are expected to grow by 344% in 2024, getting 18% of the market by the end of the year, according to IDC. Average selling prices (ASPs) for GenAI smartphones are also being predicted to be more than double non-GenAI devices. The higher cost of GenAI smartphones will contribute to the ongoing trend of premiumization in the market.
