Who would have thought, a few years ago, that entry-level and mid-range smartphones would become the stars of the market? However, this is what the latest Canalys study reveals for the year 2024, where growth was driven by devices priced at less than €300.
Remember: not so long ago, the smartphone market was obsessed with premium models and their ever more spectacular innovations.
In 2024, the tide has turned. The latest study Canalys reveals to us a mobile landscape that has changed significantly, where devices costing less than €300 have become the real engines of growth.
Apple, fragile ROI
With 23% market share in the last quarter of 2024, Apple remains the undisputed leader in the sector. With the release of the new iPhone 15, Apple is coming out of this quarter with a good sales volume.
But this crown seems increasingly heavy to bear: the Cupertino giant has lost one point compared to 2023, despite an aggressive strategy in emerging Asia-Pacific markets.
A decline which reflects an underlying trend: consumers are no longer ready to spend lavishly on their smartphone.
Entry-level and mid-range smartphones
This is perhaps where the biggest surprise of 2024 lies: it is entry-level and mid-range smartphones that have driven the market.
This trend explains the remarkable success of Xiaomi, the only manufacturer in the top 3 to show positive growth. The secret? Devices that offer excellent value for money, combined with a strengthened presence on the Chinese market and controlled international expansion.
The days when the race for innovation justified ever higher prices seem to be over. Make way for a more mature market, where innovation must be combined with accessibility.
The Korean giant, Samsung, perfectly illustrates the challenges of the current market. With 16% market share (compared to 17% in 2023), Samsung finds itself caught between Apple in the premium segment and Chinese manufacturers in the mid-range. An uncomfortable position which forces the group to rethink its product strategy.
One of the little-known lessons of 2024 concerns inventory management. Last year, the manufacturers who knew how to best manage their production and distribution were those who outperformed.
The analysts of Canalys are cautious for 2025, and for good reason. The 3% growth recorded in the last quarter of 2024 marks a clear slowdown, suggesting that the main growth drivers (notably emerging markets) are starting to run out of steam.
AI as a new lease of life
Faced with these challenges, manufacturers are relying heavily on artificial intelligence. The objective? Create a new wave of innovation capable of attracting consumers, even in more affordable segments.
However, it is difficult to believe that artificial intelligence will be the messiah long awaited by the industry. If manufacturers make it their marketing hobbyhorse for 2025, the reality is more nuanced.
The first “AI-boosted” smartphones are struggling to convince people of their real usefulness in everyday life. Between gimmicky features and excessive promises, AI looks more like a marketing argument than a real revolution.
Especially since consumers, burned by years of technological escalation, are becoming more and more skeptical of innovations supposed to revolutionize their daily lives.
Finally, the natively integrated AI makes it easier to use, but you can easily download applications like Perplexity, ChatGPT or Google Gemini on any iOS and Android smartphone.
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