Apple saw only modest growth in iPhone sales in 2024, despite a notable recovery in the global smartphone market, as reported by IDC. Worldwide smartphone shipments rose by 6.2%, totaling 1.24 billion units, yet iPhone shipments increased by a mere 0.4% during the same timeframe.

This lackluster performance highlights the difficulties Apple faces in crucial markets such as China, where local competitors are making significant strides through competitive pricing and technological advancements.

Companies like Xiaomi and Huawei are heavily investing in both hardware and software innovations, with Huawei recently unveiling its Mate 70 phone, which features proprietary chips.

Apple, Google, and Lenovo (Motorola) see growth in US smartphone market share in Q3 2024, while the overall US smartphone market saw a slight decline in shipments year over year (-0.7%).

Stay on top of #smartphone trends with IDC: https://t.co/m23gSgmVyU pic.twitter.com/lJ2V7Ryssz — IDC (@IDC) November 21, 2024

In contrast, Android manufacturers collectively contributed to the market's resurgence, achieving a 7.6% growth primarily driven by strong sales in emerging markets across Asia Pacific, Latin America, the Middle East, and Africa. These companies have effectively captured market share by providing more affordable options, with an average selling price of $295, in stark contrast to Apple's premium pricing of over $1,000 for its iPhones.

Despite the slower growth rate, Apple continues to lead the industry in profits due to its high-end pricing strategy. IDC forecasts a potential improvement for Apple in 2025, predicting a 3.1% growth for iOS devices compared to 1.7% for Android smartphones. Overall, the recovery of the broader smartphone market has been fueled by pent-up demand for device upgrades in regions with lower smartphone penetration.

However, IDC analysts have observed that even prominently advertised features such as generative AI have not significantly influenced consumer demand or prompted early upgrades, raising concerns about the potential impact of Apple Intelligence on iPhone sales as we approach 2025.