Apple plans to lead the global smartphone market by 2025, driven by its ambitious AI initiative, Apple Intelligence. This strategy aligns with the forecasted rebound in the smartphone industry. Shipments are expected to grow by 5% in 2024 after two years of decline.
Global Smartphone Market Rebounds
The global smartphone market is set to reach 1.23 billion units in 2024, showing a 5% year-on-year increase. Improved economic conditions and rising consumer confidence, especially in Latin America, Southeast Asia, and Eastern Europe, fuel this positive outlook. The growing adoption of AI-based devices is also expected to drive further growth beyond 2024.
Apple Intelligence to Boost iPhone Sales
Apple’s AI initiative, known as Apple Intelligence, plays a crucial role in this growth. Analysts predict a significant increase in demand for smartphones equipped with generative AI (GenAI) features. The share of GenAI-capable smartphones could grow from less than 20% in 2024 to over 50% by 2028. With these AI capabilities in its upcoming iPhone models, Apple is poised to lead this trend and become the top smartphone shipper by 2025.
Strong Long-Term Growth Prospects
Apple’s planned entry into the foldable smartphone market in 2027 will further enhance its market position. The demand for high-value smartphones in North America and Europe, along with steady upgrades from LTE to 5G in emerging markets, will continue to drive growth. Analysts also anticipate an increase in new smartphone users in regions like the Middle East, Africa, and India, contributing to overall market expansion.
With its focus on AI and these favorable market trends, Apple is on track to not only recover but also dominate the global smartphone market in the coming years.
