The global smartphone market has staged a remarkable recovery in 2024, ending a two-year slump with a 7% year-on-year increase in shipments, according to a report by Canalys.
Total shipments reached 1.2 billion units, driven by strong demand for premium models and a surge in replacement purchases. Apple emerged as the clear leader, shipping 225.9 million iPhones and securing the top position for the second consecutive year.
Apple’s success was fueled by robust sales in North America and Europe, as well as its expansion into emerging markets, which helped offset declining sales in China. The tech giant’s iPhone 16 Pro and Pro Max models saw an 11% increase in shipments compared to their predecessors, underscoring the growing appetite for high-end devices.
Samsung followed closely in second place, shipping 222.9 million units, its best performance since 2019. The South Korean giant’s strong showing was attributed to the popularity of its S-series flagship models, which resonated with consumers seeking premium features. Xiaomi took third place with a 15% increase in shipments, reaching 168.6 million units, while Transsion and Oppo rounded out the top five with 15% and 3% growth, respectively.
Premium Models Drive Growth
The market’s recovery was largely driven by a shift toward premium smartphones, as consumers increasingly opted for high-end models with advanced features. “Vendors have done a better job of differentiating their flagship series, making premium devices more appealing in a price-inelastic segment,” said Sanyam Chaurasia, senior analyst at Canalys. This trend benefited both Apple and Samsung, whose premium offerings captured significant market share.
Post-Pandemic Recovery and Challenges Ahead
The 2024 rebound marks the highest annual shipment volume since the pandemic, as consumers replaced older devices and vendors tapped into mass-market demand with affordable products. However, the focus on volume has come at a cost, with many manufacturers facing margin pressures due to intense competition and rising costs.
Looking ahead, analysts warn of a challenging 2025. While emerging markets were key growth drivers in 2024, their expansion is expected to slow, compounded by economic instability and potential US tariffs. “Vendors must strike a delicate balance between short-term performance, inventory management, and long-term investments to navigate the uncertainties ahead,” said Runar Bjorhovde, an analyst at Canalys.
Despite these challenges, the 2024 recovery signals a resilient and evolving smartphone market. As consumer preferences continue to shift toward premium devices, vendors will need to innovate and adapt to maintain their competitive edge in an increasingly dynamic landscape.
