AI models to take 15% of growing smartphone market in 2024

Market news | February 27, 2024

By Peter Clarke

Demand for AI applications will help drive the smartphone market in 2024 but at the same time rising prices will inhibit some people from replacing their phones, according to International Data Corp.

Worldwide smartphone shipments are expected to reach 1.20 billion units in 2024, up 2.8 percent year-over-year, according to the market analyst. This will be followed by growth at low, single-digit percentages through to 2028.

Worldwide smartphone shipments by year, 2020 to 2028. Source: IDC.

Technology developments such as foldable smartphones and AI-on-device are helping drive the recovery aided by rising demand in emerging markets, IDC said.

From a relatively small base in 2023 foldable phone shipments are expected to show year-over-year growth of 37 percent and reach 25 million units shipped in 2024. Meanwhile AI is quickly becoming part of the smartphone discussion, sparking new interest in next-gen AI experiences on a handheld device.

“IDC forecasts that 170 million next-gen AI smartphones will ship in 2024, almost 15 percent of the total smartphone market and surpassing even AI PCs,” said Nabila Popal, a research director with IDC, in a statement.

Ryan Reith, a group vice president with IDC, commented: “IDC firmly believes the smartphone will remain the quintessential device for most, but ongoing price increases and the improved durability of today’s smartphones supports an already lengthened replacement cycle, which will dampen new shipment growth.”