Tim Hardwick
Apple is set to see minimal growth in iPhone sales in 2024 despite a significant rebound in the global smartphone market, according to new data released by IDC. Global smartphone shipments grew 6.2% to 1.24 billion units, but iPhone shipments grew just 0.4% over the same period.
The weak results highlight Apple’s challenges in key markets like China, where domestic rivals are gaining traction through aggressive pricing and technology innovation. Chinese manufacturers like Xiaomi and Huawei are investing heavily in hardware and software development, as well as custom-designed processors. Huawei recently launched its new Mate 70 phone with its own chips.
Elsewhere, Android device makers collectively drove the market recovery, achieving 7.6% growth, largely driven by strong performance in the emerging markets of Asia Pacific, Latin America, and the Middle East and Africa. These makers appeared to do well by offering more affordable devices with an average selling price of $295 compared to the premium positioning of Apple’s iPhone at $1,000 or more.
Despite slower growth, Apple maintained its position as the industry’s profit leader thanks to its premium pricing strategy. Apple’s outlook could improve in 2025, according to IDC, with growth forecast at 3.1% for iOS devices compared to 1.7% for Android smartphones.
Overall, the overall smartphone market recovery was driven by pent-up demand for device upgrades in regions with lower smartphone penetration. However, IDC analysts noted that even heavily promoted features like generative AI have failed to significantly impact consumer demand or drive early upgrades, which does not bode well for Apple Intelligence's impact on iPhone sales in 2025.
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