Following two consecutive years of decline, the global smartphone market has finally rebounded in 2024, with Chinese manufacturers like Xiaomi leading the charge. According to reports from Counterpoint, Canalys, and IDC, worldwide smartphone sales grew in 2024, with the bulk of the growth coming from Chinese manufacturers.

The growth figures vary slightly depending on the source, with Counterpoint reporting a 4 percent growth in phone sales across 2024, while IDC and Canalys each reported 6-7 percent increases in global shipments. Despite the differences, all three firms agree that the market has shown significant signs of recovery, with growth predicted to continue through 2025.

"2024 was a year of recovery and normalization after a difficult 2023," says Counterpoint research director Tarun Pathak. "The market started showing signs of recovery from Q4 2023 and has now grown for five consecutive quarters." This growth is a welcome respite for the industry, which saw the lowest sales figures for a decade in 2023.

While there is some disagreement about who sits on top of the market share leaderboard, with Counterpoint reporting that Samsung led by market share for the year, and IDC and Canalys claiming that Apple took the crown, all three firms agree that Xiaomi is solidly in third place. Xiaomi's 12 percent increase in unit sales, according to Counterpoint, makes it the fastest-growing of the major players, with a market share of 14 percent for the year.

Oppo (including OnePlus), Vivo, and the Transsion group — which includes brands Tecno and Infinix — take up the next few spots, helped by strong sales in Asia and growth across Europe, Africa, and Latin America. The growth of these Chinese manufacturers has been driven in part by their focus on AI-powered devices, which have emerged as the new hot selling point in the industry.

Both Counterpoint and IDC attribute some of 2024's relatively bullish performance to the introduction of phones positioned as AI devices. "We have seen a decreased demand for foldables in the market, despite intensified promotions and marketing," says IDC research director Anthony Scarsella. Manufacturers are now "prioritizing new AI advancements at the expense of foldables," with Counterpoint predicting that by 2028, nine out of ten smartphones above $250 will include generative AI.

The shift towards AI-powered devices marks a significant change in the industry's focus, with foldables, which were once hailed as the next big thing, taking a backseat. This change in direction is likely driven by consumer preferences, as well as the increasing capabilities of AI technology. As the smartphone market continues to evolve, it will be interesting to see how manufacturers balance the need for innovation with the desire for practical, user-friendly devices.

In conclusion, the rebound of the global smartphone market in 2024 is a welcome development, driven in part by the growth of Chinese manufacturers like Xiaomi. As the industry looks to the future, it's clear that AI will play an increasingly important role, with manufacturers prioritizing AI advancements over other features like foldables. As the market continues to evolve, it will be important to keep a close eye on these trends and how they impact the industry as a whole.