Research company IDC suggests that affordable Android devices and advancements in artificial intelligence (AI) could help the smart phone market continue its growth this year. $Apple (AAPL.US)$ The institution stated that after a 12% growth in the first quarter and a 9% growth in the second quarter, the shipment of smart phones in 2024 is expected to increase by 5.8% year-on-year, reaching 1.23 billion units. Previously, the annual shipment was expected to increase by 4%, reaching 1.21 billion units.

Nabila Popal, Senior Research Manager of IDC's Global Quarterly Mobile Phone Tracking, said, "Driven by the strong growth of Android devices in China and emerging markets, the forecast for 2024 has been improved, consolidating the recovery path of the smart phone market."

Popal added that in 2024, Android devices are expected to grow by 7.1%, while iOS devices are expected to grow by only 0.8%, partially due to the intensified competition in the Chinese market and the larger base of 2023.

Popal said, "However, there is still room for growth in iOS forecasts, which largely depends on the performance of the GenAI use case in the upcoming iPhone 16 and how soon Apple can establish local AI partnerships in China."

Popal explained that he expects the growth of iOS to trend upward in 2025, partly due to Apple Intelligence, which has generated a lot of excitement and is expected to gain momentum and accelerate device upgrades next year.

Earlier this week, Apple announced that it will hold its Fall Product Launch Event on September 10th, and it is widely expected that Apple will unveil the iPhone 16 and several other new devices at the event.

The rise of AI smartphones.

People are very excited about the potential impact that artificial intelligence could bring to the smart phone market. IDC Research Director Anthony Scarsella predicts that GenAI features will differentiate certain devices from others, leading to a 344% growth in GenAI smartphones and ultimately capturing 18% of the entire smart phone market by the end of 2024.

However, Scarsella points out that GenAI phones are not suitable for everyone.

Scarsella explains, "GenAI-enabled smart phones are initially not cheap, as the average selling price of these phones will be more than twice that of non-GenAI smart phones, further driving the trend towards high-end devices."

Editor / rocky