NIX Solutions: Smartphone Market & Premium Trends

Analysts are beginning to sum up the results of last year, including representatives of Counterpoint Research, who have determined the dynamics of smartphone shipments among the five largest manufacturers. Apple, in a growing market, reduced sales by 2% and lost one percentage point to competitors. Meanwhile, Samsung, although it lost some positions, managed to increase shipments by 1%. At the same time, Samsung Electronics continues to be seen as the largest supplier of smartphones in the world, controlling 19% of the market versus 20% the year before last.

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If in 2022 Samsung occupied 21% of the market, then Apple, by the end of 2024, simply returned to the 2022 level, retaining 18% of the market. In 2023, the Cupertino company controlled 19% of the smartphone market. Despite strong growth in iPhone shipments in some regions like Latin America and Africa, 2024 was not a great year for Apple overall, as the iPhone 16 debuted with an uneven rollout of its Apple Intelligence suite of artificial intelligence features. It never reached Chinese buyers last year, even though China remains the world’s largest smartphone market.

Overall, the global smartphone market grew by 4% last year, a significant improvement following two consecutive years of decline. The year before last was the worst year for the smartphone market in a decade. Among the top five manufacturers, Xiaomi posted the largest gains, increasing shipments by 12% and ranking third in the world with a 14% share. Oppo and Vivo each hold 8% of the global smartphone market; Oppo’s sales declined by 8% for the year, while Vivo’s sales grew by 9%. All other smartphone makers together account for no more than a third of the global market. Two years ago, their share did not exceed 30%. Last year, smartphone sales grew the most in Europe, China, and Latin America.

Global Market Growth and Outlook

According to Counterpoint Research, by 2028, nine out of ten smartphones in the $250+ price segment will support generative AI functions. In the foreseeable future, the overall smartphone market will not grow significantly in real terms, but the trend toward “premiumization” will drive increased revenue for market participants. In 2024, sales surged most in the segment of smartphones priced over $1,000, as many buyers benefited from subsidies and preferential lending programs across certain regions. This year, analysts predict revenue from smartphone sales will grow by 8%, while real-term sales will only rise by 4%, adds NIX Solutions.

We’ll keep you updated on any further shifts in market share as the year unfolds. At least for now, premium devices appear to be leading the charge. While the general market growth remains modest, manufacturers are banking on high-end features—such as generative AI—to boost revenue and captivate consumers looking for cutting-edge experiences.