Smartphone Market Recovers in 2024 After Two Years of Decline

The global smartphone market returned to growth in 2024 after two consecutive years of annual declines, according to preliminary results from Counterpoint Research. Sales grew 4% YoY in 2024, as consumer sentiment fared better than in previous years following macroeconomic improvements. Smartphone sales in 2023 were the lowest in a decade.

“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 4Q23 and has now grown for five consecutive quarters. Almost all markets showed growth, led by Europe, China, and Latin America,” said Tarun Pathak, Research Director at Counterpoint Research.

Samsung continued to lead the market in 2024 with a 21% share, led by strong demand for its S24 series and A-series product lines. Apple, with an 18% share took the second spot. Xiaomi grew fastest among the top five brands in 2024, helped by its portfolio realignment, premium push, and aggressive expansion activities. OPPO came in fourth, with a YoY decline, but it ended the year with stronger momentum. vivo rounded off the top five, led by strong performance in India and China, where it ended the year as the top-ranked OEM. The top 5 remained the same as in 2023 but lost some share to aggressive competition from Huawei, HONOR, and Motorola, the fastest-growing OEMs among all the top 10 brands.

2024 also brought GenAI to smartphones, a potentially revolutionary technology. While GenAI-capable smartphones remain limited to the premium segment for now, Counterpoint Research expects GenAI to become a norm for mid-range devices as well. By 2028, the analytics company expects nine out of ten smartphones priced above $250 to be GenAI-capable.

While smartphone volumes are unlikely to reach the peak levels seen in pre-COVID times, premiumization means that revenues will continue to rise as average selling prices grow. Sales of ultra-premium smartphones, those priced above $1000, grew fastest in 2024 as consumers showed a preference for spending more on their next smartphone. This was enabled by device subsidies in developed markets and the easy availability of low-cost finance in emerging markets. In 2025, Counterpoint Research expects revenue growth to continue to outpace volume growth, with revenues growing 8%, compared to 4% volume growth.