The renewed optimism about smartphone sales comes hot on the heels of the first handsets with generative AI functions released by major brands. Those will notch a jawdropping 344% increase in shipments this year, according to IDC, and will have no less than 18% market share in their initial year of existence.Â
While AI phones are still expensive, the shipments growth is driven mainly by Android sales in China and emerging markets that are on the rise. In fact, the Android phone shipments will grow by more than 7% this year, which is nine times the Apple iPhone’s sales increase forecast.
However, there is a potential upside to the iOS forecast with a lot depending on how well the demonstrated GenAI use cases play out in the upcoming iPhone 16 launch and how soon Apple can establish local AI partnerships in China. IDC expects the iOS trajectory to improve in 2025 with 4% year-over-year growth thanks to Apple Intelligence, which is already creating a lot of excitement and is expected to gain momentum next year and encourage faster upgrades.
Nabila Popal, senior research director with IDC’s Worldwide Quarterly Mobile Phone Tracker, August ’24
Android phone makers sell more for less. | Image credit – IDC
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