Introduction: GenAI smartphones will significantly drive global shipment growth in 2024, according to IDC’s latest report. The market is expected to grow by 5.8% year-on-year (YoY), reaching 1.23 billion units, with GenAI technology playing a crucial role.

Strong Growth in Android Devices

IDC forecasts that Android devices will grow at a rate of 7.1%, which is notably higher than the 0.8% growth expected for iOS. This difference stems largely from Apple’s increasing competition in China and a higher comparison base for iPhone sales. However, iOS could gain momentum if the upcoming iPhone 16’s GenAI features succeed, and Apple forms local AI partnerships in China. Consequently, IDC anticipates a 4% YoY growth for iOS in 2025, driven by the success of Apple Intelligence. Read more about Android’s growth.

The Rise of GenAI Smartphones

Moreover, GenAI smartphones are set to capture 18% of the market by the end of 2024, with a remarkable 344% growth in this segment. IDC research director Anthony Scarsella notes that most flagship models will incorporate on-device GenAI features. These features help premium models stand out, with the average selling price of GenAI smartphones likely to be more than double that of non-GenAI devices. Explore the impact of GenAI on smartphones.

Market Recovery and Outlook

The smartphone market is indeed recovering, as IDC reports 12% growth in Q1 2024 and 9% growth in Q2. Additionally, Canalys observed a positive trend, with global smartphone shipments reaching 288.9 million units in Q2 2024. Samsung maintains its lead with 53.5 million units shipped, followed by Apple with 45.6 million units. Furthermore, Xiaomi ranks third with 42.3 million units, driven by strong demand in Greater China. Learn more about the market recovery.

The Future of the Smartphone Market

Looking forward, both IDC and Canalys predict mid-single-digit growth for the smartphone market in 2024, driven by recovering inventory levels and an improved economic climate. However, Canalys cautions that double-digit growth is unlikely despite seasonal demand. In response to this, local Chinese brands will likely use GenAI features to differentiate themselves in the premium segment, while Samsung and Apple continue to enhance their flagship models with exclusive GenAI features. Read about future trends in the smartphone market.