Key Takeaways
- The smartphone market is projected to develop by 6.2% in 2024, pushed by “pent-up demand” for cellphone upgrades.
- Apple’s iOS is forecasted to outpace Android progress in 2025.
- AI is not deeply impacting smartphone demand but, however may enhance gross sales if a ‘must-have’ function seems.
Smartphone manufacturers can be smiling about this information. The Worldwide Knowledge Company (IDC) has projected that the worldwide smartphone market will develop 6.2 p.c in 2024, with shipments reaching 1.24 billion items. The expansion in smartphone shipments is primarily attributed to “pent-up demand for machine upgrades.” After years of waning demand, it is a constructive indicator for the smartphone market.
The information is even higher for Apple, as iOS is projected to develop by 3.1 p.c year-over-year in 2025, outpacing Android’s forecasted progress of 1.7 p.c in 2025. Nonetheless, in 2024, Apple’s iOS solely grew 0.4 p.c in comparison with Android’s 6.2 p.c progress in the identical interval, so the corporate is enjoying catch-up in a way.
Apple is experiencing unprecedented progress in rising markets like India however is dealing with challenges within the U.S., China, and Europe, the place the competitors and market saturation are strongest, hindering progress. However issues are wanting up for the Cupertino-based firm.
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AI is not promoting a lot of telephones but, nevertheless it may quickly
Apple Intelligence may end in extra gross sales, if a ‘should have’ function seems
In October, Apple lastly launched Apple Intelligence after a lot anticipation. Nonetheless, the IDC says AI options aren’t considerably impacting market demand. Why? The dearth of a “should have” function.
“Whereas we proceed to consider GenAI will revolutionize the person expertise within the years to return, extra investments are wanted to extend client consciousness and introduce a ‘should have’ function that may rush customers to the shop and create that tremendous cycle which everyone seems to be ready for,” mentioned Nabila Popal, a senior analysis director with the IDC.
It is a truthful evaluation by the IDC. Whereas most of the new AI options on each iOS and Android are intuitive, there is not a function but that has made me really feel that I want to purchase a brand new cellphone to entry it. If Apple can discover that “must-have” AI function, it may propel iPhone gross sales. Proper now, many AI options on smartphones are restricted to premium/flagship gadgets. The IDC anticipates that AI options can be accessible on most lower-priced telephones by 2028, “probably reaching 70% of the smartphone market.”
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