The global smartphone market recorded a single digital growth revenue growth of 5% year-over-year (YoY) in 2024, Counterpoint Research said in its latest report. The analytics firm added that the recent revenue growth ended a two-year streak of declines in the market.
The report says the global macroeconomic conditions and improved consumer sentiment contributed to the 4% YoY rise in global smartphone shipments in 2024. Smartphone upgrades were driven by features such as better cameras, faster processors, and 5G adoption.
However, market leaders such as Apple and Samsung saw a decline in shipment numbers. The firm notes that top smartphone vendors compensated for their shipment losses with increased revenues and higher average selling prices (ASP).
The report highlights that the Apple iPhone set a new record by crossing the $900 ASP mark, contributing significantly to the increased global ASP of $356 (1% YoY). Further, the iPhone ruled the pack with the highest revenue share of 46%, followed by Samsung's 15% and single-digit contributions from Oppo, Vivo, and Xiaomi.
However, Vivo's revenue growth was the fastest among the top five OEMs (20% YoY) individually. Meanwhile, Xiaomi was the fastest in shipments, with a 16% YoY growth.
Counterpoint research director Jeff Fieldhack commented that "the contribution of the Pro series within Apple’s portfolio continues to rise. Also, Apple continues to expand its footprint in emerging markets where the growing middle-class is driving demand."
It's not the first time Apple has grabbed almost half the smartphone revenue share. Despite selling smartphones at a premium, the stickiness of its ecosystem has been considered a factor that deviates users from buying cheaper phones.
The latest numbers have arrived just in time around Apple's Q1 2025 earnings call. iPhone revenue for the quarter was recorded at $69.1 billion, reaching all-time records in several markets. Apple CEO Tim Cook said the iPhone 16 models sold better in markets where Apple Intelligence was rolled out.
Samsung's marginal decline in 2024 shipments was offset by a higher ASP of $299 and a 2% YoY revenue growth driven by the success of Galaxy S24. However, the South Korean smartphone giant still sits below the global ASP.
The smartphone market is "showing signs of maturity," reflected in its "slow growth and extended replacement cycles." However, the report adds there is still potential for further growth in the coming years.
Senior Counterpoint analyst Shilpi Jain said that low-cost 5G and GenAI for lower price segments are key trends to consider this year. "Going forward, in 2025, smartphone shipments are likely to grow in single-digit percentages, while ASPs and revenues will continue to outpace shipment growth."
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