The smartphone market in 2024 will show decent growth overall.
2024 was a good year for smartphone manufacturers – especially if they relied on the Android ecosystem. Like the market research institute IDC (International Data Corporation) reports that a total of 1.24 billion units are expected to go over the counter this year.
Compared to the previous year, there is growth of 6.2 percent, which is the first time there has been an increase in this aspect since 2021. This growth spurt is mainly due to demand that has “pent up” among paying customers.
However, the coming years look less rosy, as the IDC reports. This is due to three reasons:
- Almost all people who can or want to afford a smartphone have now gotten one.
- In principle, the devices sold last much longer on average – however, the report does not provide exact figures for the average lifespan of a smartphone.
- Finally, the used market for smartphones is becoming more and more important, so sales of new devices are consequently dwindling.
However, the much-advertised and quoted AI functions with which Apple, Google, Samsung & Co. want to make the new generations of cell phones attractive have only little to do with the higher demand. But that could change in the future:
While we continue to believe that GenAI will revolutionize the user experience in the coming years, further investment is needed to increase consumer interest and introduce a “must-have” feature that drives consumers to the store and the “Super cycle that everyone is waiting for.
IDC via press release
According to the IDC, the driving force behind the increased sales figures is Android smartphones, which grew by 7.6 percent worldwide. This can be observed particularly in regions outside Europe, Japan and North America.
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iPhones, on the other hand, have had a weak phase this year. Compared to the previous year, there was only an increase of 0.4 percent. A large part of the growth can be attributed to the Indian market, while there is a decline in other core markets such as the USA, Europe and China.
- Next year, the picture is expected to be the opposite: According to the IDC forecast, iPhones are expected to grow by 3.1 percent, while Android growth will remain at 1.7 percent.
- The average net sales prices of cell phones with the respective operating systems are also mentioned in the report: An Android smartphone is said to have cost an average of $295, while iPhones cost an average of $1,042. This means that the two ecosystems have become $14 and $46 more expensive compared to 2022.
