Smartphone giant Apple Inc’s (NASDAQ:AAPL) iPhones, minus their highly anticipated Apple Intelligence features, failed to gain traction in China, paving the way for the country’s domestic players in 2024.
Counterpoint’s Tarun Pathak mentioned 2024 as a year of recovery and normalization after a difficult 2023.
Global smartphone sales grew 4% in 2024 after two consecutive years of annual declines, Counterpoint cites preliminary data. Smartphone sales marked a decade low in 2023.
Also Read: Nvidia, Broadcom Among Goldman Highlights For AI Opportunities
Almost every market grew, led by Europe, China, and Latin America.
The iPhone captured an 18% market share in 2024, down from 19% in 2023.
However, Apple continued to grow in its non-core markets, like Latin America, Africa, and Asia-Pacific. Needham’s Laura Martin expects iPhones to account for 89%-96% of Apple’s fiscal 2025 revenue.
Counterpoint’s Ivan Lam flagged a consumer pivot to Apple’s premium offering, helping to offset some of the declines. Lam pointed to the growing sell-through share of Pro series devices in markets like China.
Samsung Electronics Co (OTC:SSNLF) led with a market share of 19% in 2024, down from 20% in 2023, backed by demand for its S24 series and A-series product lines. The S24 series gained traction as the first phone positioned as an AI device and performed exceptionally in Western Europe and the USA.
Xiaomi (OTC:XIACF) (OTC:XIACY) reported a 14% market share in 2024, up from 13% a year ago. Oppo and Vivo each captured an 8% market share in 2024.
Xiaomi grew fastest among the top five brands in 2024, backed by its premiumization and expansion activities.
Oppo ended the year with stronger momentum. Vivo emerged amongst the top five, led by strong performance in India and China.
The top five remained the same as in 2023 but lost some share to Huawei Technologies, Honor, and Motorola. Huawei has no plans to give any respite to its rivals, who are doling out discounts for the New Year on their premium models.
China targets expanding government-supported consumption subsidies to include smartphones and other electronics, which will likely benefit domestic brands like Huawei and Xiaomi.
While generative AI-capable smartphones remain limited to the premium segment, Counterpoint expects them to become a norm for mid-range devices. By 2028, Counterpoint expects nine out of ten smartphones priced above $250 to be Generative AI-capable.
In 2025, Counterpoint expects revenue growth to continue to outpace volume growth, with revenues growing 8%, compared to 4%.
