IDC Predicts GenAI Smartphones Will Propel Global Shipment Growth in 2024
IDC has updated its forecasts for global smartphone shipments in 2024, anticipating a 5.8% increase over the previous year to reach 1.23 billion units. This positive projection by the market intelligence company is largely based on the rise in demand for cost-effective Android smartphones in developing regions and a marked interest in smartphones capable of supporting generative AI, particularly in the high-end market segments.
According to IDC’s senior research director, Nabila Popal, Android smartphones are projected to experience a growth rate nine times that of iOS, at 7.1% compared to just 0.8%. This significant growth difference is due to intensified competition facing Apple in the Chinese market and a relatively higher base year figure for the iPhone.
The analysis also points to a potential growth opportunity for iOS, contingent on the market response to generative AI features expected in the forthcoming iPhone 16 and Apple’s efforts to forge local AI partnerships in China. IDC forecasts a more favorable growth trajectory for iOS into 2025, with a predicted 4% year-on-year increase, driven by what it terms “Apple Intelligence.”
The report highlights the rapid adoption of GenAI smartphones, forecasting a 344% growth in this segment to capture 18% of the total market by the end of 2024. Anthony Scarsella, IDC research director, noted that most flagship models will likely feature some GenAI capabilities on-device.
“Although GenAI smartphones are relatively new in the market, premium flagships will continue to adopt GenAI features to help differentiate themselves,” said Anthony Scarsella, research director for IDC’s Worldwide Quarterly Mobile Phone Tracker. He also mentioned that the average selling price for GenAI-capable smartphones is expected to be more than double that of non-GenAI devices, which will drive the trend of premiumisation in the sector.
The smartphone market is recovering after a difficult period. According to IDC, there was a 12% growth in the first quarter of 2024, followed by 9% in the second quarter. This positive trend has enhanced confidence in the industry’s performance heading into the second half of the year.
The latest research from Canalys also show that the worldwide smartphone market saw robust growth in the second quarter of 2024, with shipments reaching 288.9 million units. “The market has expanded for three consecutive quarters, fueled by product innovation initiatives and improvements in business conditions,” stated Canalys.
Mirroring IDC’s data, Canalys noted that despite a modest 1% shipment increase, Samsung held onto pole position with 53.5 million units shipped. Meanwhile, Apple held second place with 45.6 million units, bolstered by solid momentum in North America and APAC’s emerging markets.
China’s Xiaomi, with its competitive product offerings, followed closely with shipments of 42.3 million units to achieve a market share of 15%. “Greater China’s growth trajectory now mirrors global markets, driven by improved macroeconomic conditions and renewed business confidence among channel and smartphone brands,” the report stated.
Like elsewhere, the Chinese domestic market will see local Chinese brands use GenAI features to stand out in the premium segment, aiming to capture rising high-end spending and apply successful strategies worldwide.
“Samsung will inevitably focus on integrating its Galaxy ecosystem to create strong value propositions for consumers via its flagship offerings with exclusive GenAI features,” Canalys Senior Analyst Sanyam Chaurasia said. Apple will look to accelerate replacement demand in these markets via its AI strategy, with hybrid models, enhanced privacy and personalised Siri features.”
Even Canalys doesn’t foresee the smartphone market seeing double-digit growth in 2024 despite the seasonal demand in the year’s second half. Overall, the global technology market analyst firm anticipates the smartphone market to grow in the mid-single digits in 2024, driven by recovering inventory levels, eased import restrictions, and a better economic climate.
(Photo by Samuel Angor)
See also: Arm unveils new AI designs and software for smartphones
Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.
Explore other upcoming enterprise technology events and webinars powered by TechForge here.
You must be logged in to post a comment.
Discover the pinnacle of WordPress auto blogging technology with AutomationTools.AI. Harnessing the power of cutting-edge AI algorithms, AutomationTools.AI emerges as the foremost solution for effortlessly curating content from RSS feeds directly to your WordPress platform. Say goodbye to manual content curation and hello to seamless automation, as this innovative tool streamlines the process, saving you time and effort. Stay ahead of the curve in content management and elevate your WordPress website with AutomationTools.AI—the ultimate choice for efficient, dynamic, and hassle-free auto blogging. Learn More
