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.
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Well, there wasn't a massive difference between iPhone 15 and 16 apart from a dedicated camera button which no one asked for. Or the delayed AI fiasco.
We need, as our American cousins say, something tangible that's worthy of upgrade. This will be unpopular opinion but there is nothing incitcing me to upgrade from my iPhone 13 Mini.
There really isn't much to do in terms of form factor, materials, or hardware performance at this late stage in smartphone development.
However, despite chips not advancing as fast as they used to, Apple could have reached record iPhone sales if they hadn't been as slow to announce and rollout AI as they have been:
Although the hype AI is getting is not fully warranted, and very disappointing on some level, the average consumer would want to buy a new iPhone if it came with features like an LLM Siri and a fully fledged suite of high quality generative AI features.
But Apple has just been too slow and the quality of its AI tools is not impressive.
I'm still convinced that Apple didn't add all the value to the $799 iPhone just to have it support AI in the near future, but much more to give buyers a reason to upgrade despite getting next to no AI while other brands are 2-3 years ahead of Apple.
I don't think that Apple AI, no matter how good or when it will be (or was) released, would have made any difference...AI is exciting to IT folks, and that's about it, and besides there are a dozen AI services that can be quickly installed on any iPhone, right now, from the app store. Phones are commodity items now, and people just aren't as interested in the new tech as they used to be. Their iPhone works, they don't think about it much, and don't care to replace them until they need to. There is zero pent-up demand (in the US).
Buying a new phone now is about as exciting as buying new tires. I'm happy to have them, and it's nice to be riding on a new set, but it's not exciting, not interesting, and not worth upgrading because a new design or feature is available.
I upgraded my 13 Pro to a 16 Pro, only because my employer paid for it. It has been the most boring, lateral upgrade of any tech in recent memory. A month later, it feels exactly the same as my 13 Pro did. The usb-c is nice, however.
Of course generative AI hasn't driven sales. Let's look at some facts...
People have been using ChatGPT on their iPhones since 2023.
Apple Intelligence is limited to the most recent model phones only.
Yet the people using those older phones know full well the phones are fully capable of ChatGPT. (Yes, yes, private on-device blah blah nobody cares about this distinction when there is such a huge functionality gap.)
But Apple Intelligence isn't even fully available, especially the one part that actually competes with the part of ChatGPT people actually use. And even then, it will fall back to ChatGPT.
And it won't even be available until next year, and ChatGPT is already miles ahead.
Also, their commercials for Apple Intelligence are perhaps the worst they have ever made.
Why would anyone expect AI to drive sales? In fact it's remarkable it even grew .6%
I enabled apple intelligence on my Mac and have yet to figure out a use for it. And I use Chatgpt multiple times per day so you would think I would have a use for something. Apple hasn't had an inspired phone design since the iPhone 4
