Smartphone market recovery doesn't help Apple's iPhone

New research says that overall smartphone sales rose by 4% year over year in 2024, but the iPhone's share slightly declined as rivals such as Xiaomi grew in popularity.

Previous reports have agreed that iPhone sales are down, although in November 2024 it was claimed that the iPhone 15 was leading sales globally. It may now be significant that it was the iPhone 15 that was doing well, as ">new figures from Counterpoint Research suggest that the iPhone 16 underperformed.

Specifically, Counterpoint analysts say that the iPhone 16 had mixed success because its much-promoted Apple Intelligence features were not available at launch. Instead, it was Chinese firms that saw the greatest growth.

Xiaomi, for instance, came in at number 3 in the list, with a market share of 14%. While it's starting from a smaller userbase than either Apple or Samsung, that market share still represented a growth of 12% year over year.

However, Apple has been steadily growing since the iPhone 16 was released, with Counterpoint estimating that the iPhone is on track to take over 50% of the ultra-high end smartphone market.

While not issuing any details or figures, Counterpoint says that this ultra-high segment was the fastest-growing part of the market in 2024. This segment is defined as being for smartphones that cost over $1,000, so most of Apple's iPhone range qualifies.

Overall, Apple reportedly took 18% of the global smartphone market, in 2024, representing a drop of 2%. It was still enough to put Apple in second place behind only Samsung, which had a 1% rise year over year to reach 19%.

Counterpoint also claims that 2023 was the worst year for smartphone sales in a decade. So while the market grew 4% year over year, it started from a very low base.

Separately, JP Morgan analysts claimed in October 2024 that its figures showed Apple Intelligence was not a factor for iPhone 16 buyers. But it also predicted that it would be, as the new features continue to become available.