Smartphone Market Grows 6% as AI and Discounts Help Demand

15.07.2024

The smartphone market grew by 6%, driven by artificial intelligence and discounts. According to independent research, Apple Inc.’s iPhone shipments stabilized in the June quarter, while the overall smartphone market accelerated its growth.

Global smartphone shipments rose by 6.5%, according to IDC, while sales to consumers increased by 6%, per Counterpoint Research figures. Aggressive discounts during China’s 618 shopping festival helped attract consumers in the world’s largest mobile market, where Xiaomi Corp. and a resurgent Huawei Technologies Co. have been making inroads this year. The new research adds to data from Chinese authorities showing the iPhone staging a recovery since March.

IDC reported that Apple shipped 45.2 million devices in the quarter, a 1.5% increase from the same period a year earlier. Counterpoint’s figures, which reflect end-user sales, showed a 1% decline, and both research groups found the iPhone losing market share. Xiaomi was the biggest gainer, largely driven by entry-level smartphones and emerging markets.

The discount campaigns and the promise of new artificial intelligence features helped stabilize sales for Apple and market leader Samsung Electronics Co., which is also promoting a new generation of phones with AI enhancements. “Apple’s momentum in the second quarter improved significantly from the negative growth seen in the first quarter,” said IDC research director Nabila Popal.