Apple experienced minimal iPhone growth in 2024 despite a significant rebound in the global smartphone market, according to new data published by IDC.Worldwide smartphone shipments increased 6.2% to reach 1.24 billion units, but iPhone shipments grew by just 0.4% during the same period.The tepid performance underlines Apple's challenges in key markets like China, where domestic rivals are gaining ground through aggressive pricing and technological innovation.
Chinese manufacturers like Xiaomi and Huawei are investing heavily in hardware and software development as well as custom processor designs, with Huawei recently launching its new Mate 70 phone featuring its own home-grown chips.Elsewhere, Android device makers collectively drove the market's recovery, achieving 7.6% growth mostly through strong performance in emerging markets across Asia Pacific, Latin America, the Middle East, and Africa.These manufacturers appear to have succeeded by offering more affordable devices, with an average selling price of $295 compared to Apple's $1,000-plus premium iPhone positioning.
Despite the slower growth, Apple maintained its position as the industry's profit leader through its premium pricing strategy.According to IDC, the Apple's prospects may improve in 2025, with a forecast of 3.1% growth for iOS devices compared to 1.7% for Android smartphones.Overall, the broader smartphone market's recovery was driven by pent-up demand for device upgrades in regions with lower smartphone penetration.
However, IDC analysts noted that even heavily marketed features like generative AI have failed to significantly impact consumer demand or drive early upgrades, which doesn't bode well for the impact of Apple Intelligence on iPhone sales going into 2025.
