Smartphone Market Rebounds in Q2, AI and 5G Drive Growth:Canalys
Beijing, September 4, 2024– The global smartphone market experienced a resurgence in the second quarter of 2024, with shipments reaching 120 million units, marking a5% year-on-year increase, according to a new report from market research firm Canalys. While the growth exceeded expectations, the firm has only slightlyadjusted its full-year forecast to 1200 million units due to ongoing challenges like rising costs, inventory management, and a complex business environment.
The report, titled Q2 Canalys Smartphone Full-Spectrum Ranking and Forecast: AI, Premium Phones, 5G, Foldables, highlights the continued resilience of the premium smartphone market. All five leading manufacturers in the over $600 segment witnessed year-on-year growth in Q2.
Apple, driven by the launch of its Apple Intelligence services, rebounded from a Q1 decline, registering a 5% year-on-year increase and securing a dominant 62% market share in the premium segment. Samsung’s Galaxy S24 series sustained strong demand, resulting in a 35% year-on-year growth and a 22% market share.
Huawei, fueled by its new Pura series, experienced a robust resurgence in its home market, achieving an 80% year-on-year growth and claiming a 9% global market share. Xiaomi’s continued demand forits 14 series led to a 71% year-on-year growth, placing it fourth in terms of shipments. Vivo, with its strong performance in its home market and the expansion of its X series foldable flagship, secured the fifth spot.
The report also forecasts a significant rise in AI-poweredsmartphones, with penetration expected to reach 17% in 2024 and surge to 30% in 2025. Apple remains the dominant player in this segment, accounting for 51% of AI smartphone shipments in Q2 with 18 million units.
While the foldablephone market is still seeking new demand catalysts, it is projected to experience a modest 3% year-on-year growth in 2024, reaching approximately 18 million units. However, the emergence of generative AI, new product forms, and potential new entrants could reignite growth in this category.Canalys predicts a 30% compound annual growth rate (CAGR) for foldable phone shipments from 2024 to 2028, reaching 51 million units by 2028.
The report further highlights the steady progress of 5G penetration in the smartphone market.Canalys anticipates that 5G smartphones will account for 67% of total shipments in 2024, rising to 87% by 2028.
Despite the positive outlook for the short term, Canalys cautions that the smartphone market’s annual growth rate will gradually plateau afterthis year’s strong rebound. The firm expects a moderate 2% CAGR from 2024 to 2028.
Emerging markets remain crucial drivers of overall market recovery. However, some markets are expected to face macroeconomic uncertainties and intensified competition in the second half of the year.
The report’s findings underscore the evolving dynamics of the smartphone market, with AI, 5G, and foldable technology shaping the future landscape. While the market faces challenges, the continued demand for premium devices and the emergence of new technologies suggest a promising future for the industry.
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