Global smartphone shipments surged by 6.5% year-over-year in the second quarter of 2024, totaling 285.4 million units, driven by increasing AI-powered devices, according to a new report by International Data Corporation (IDC).
According to the IDC Worldwide Quarterly Mobile Phone Tracker, the growth, driven by an increase in AI-powered smartphones, marks the fourth consecutive quarter of expansion, indicating a gradual recovery for the market despite ongoing challenges in certain regions.
According to IDC report, the recovery is progressing with significant year-over-year gains among the top 5 companies. However, competition among these leaders is intensifying, accompanied by a clear division in price categories.
Market Leaders and Competitive Dynamics
According to the IDCs’ Wong “some OEMs adopted a less aggressive approach in 2Q24 due to pressure from BOM costs, prompting companies to refine product specifications or pricing to ensure profitability. However, the second quarter serves more as a prelude to the launch of more Gen AI smartphones in the latter half of the year, which could potentially become the next growth driver following 5G and foldables.”
Why AI-powered smartphones are on the rise
Apple and Samsung remain at the forefront, capitalising on the premiumisation trend, while leading Chinese OEMs are boosting shipments of lower-end devices to capture more market volume amid sluggish demand.
This shift is putting pressure on the market share of mid-range devices, as noted by Nabila Popal, senior research director at IDC’s Worldwide Tracker team.
“Still, there is lots of excitement in the smartphone market today thanks to higher average selling prices (ASPs) and the buzz created by Gen AI smartphones, which are expected to grow faster than any mobile innovation we have seen to date and forecast to capture 19% of the market with 234 million shipments this year,” Nabila Popal, senior research director with IDC’s Worldwide Tracker team said.
In Q2 2024, Samsung maintained its leading position with an 18.9% market share, driven by its strong AI strategy and flagship models. Apple followed with a 15.8% share, showing significant gains in key markets such as China. Both companies experienced modest year-over-year growth.
Xiaomi ranked third with a 14.8% share, while vivo and OPPO tied for fourth, holding 9.1% and 9.0% shares respectively. Xiaomi and vivo saw double-digit growth, particularly in emerging markets and China, while OPPO’s expansion outside China contributed to its 1.8% growth.
Will Wong, senior research manager for Client Devices at IDC Asia/Pacific, highlighted that, “the growth in 2Q24 continues to provide some relief to the OEMs, although it is partly supported by a low comparison base and the overall recovery is still at a soft pace.”
According to the IDCs’ Wong “some OEMs adopted a less aggressive approach in 2Q24 due to pressure from BOM costs, prompting companies to refine product specifications or pricing to ensure profitability. However, the second quarter serves more as a prelude to the launch of more Gen AI smartphones in the latter half of the year, which could potentially become the next growth driver following 5G and foldables.”
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