On Tuesday, August 28th, Eastern Time, authoritative research firm International Data Corporation (IDC) raised its forecast for global smart phone shipments, stating that with the recovery of consumer electronics demand, the generation AI features are attracting more buyers, and smart phone shipments in the first half of this year will show strong growth.

IDC predicts that global shipments in 2024 will increase by 5.8% year-on-year to 1.23 billion units. Previously, IDC's forecasted growth rate was 4%, to 1.21 billion units.

Global smart phone shipments in the first quarter of this year increased by 12% year-on-year, and the second quarter increased by 9%, which makes people more optimistic about the prospects for the second half of this year.

IDC wrote in the report, "After two difficult years, affordable Android smart phones continue to grow rapidly in emerging markets, and the high-end market is beginning to accept GenAI smart phones, stimulating people's excitement and new interest in the industry."

IDC's global smart phone market forecast (shipments and growth rate)

In an environment of uncertain economic risks, consumer electronics have been in a relatively depressed market state. The move by IDC to raise its expectations indicates that global consumer electronics demand is beginning to recover. At the same time, the new GenAI features are expected to boost the demand for smart phones in major markets such as the United States and China.

"Although GenAI is relatively new in the market, high-end flagship products will continue to adopt GenAI features to help them stand out," said Anthony Scarsella, IDC's Global Quarterly Mobile Phone Tracking Research Director.

Apple phone sales are expected to be boosted by GenAI.

It is worth mentioning that Apple will hold its autumn conference at its headquarters in Cupertino, California on September 9th. It is expected to launch a new iPhone there to reverse the global sales slowdown, with the generative artificial intelligence function expected to be a major highlight.

At the developer conference in June this year, Apple officially launched its advanced artificial intelligence system, Apple Intelligence, introducing a series of artificial intelligence features to its operating system.

IDC predicts that thanks to Apple Intelligence, the growth trajectory of iPhone sales will improve by 2025, with an annual growth rate of 4%.

In addition, earlier this month, Google announced the launch of the new Pixel smartphone series with integrated artificial intelligence.

IDC predicts that by the end of 2024, with more flagship products from mobile phone brands adopting built-in GenAI functions, the number of GenAI smartphones will increase by 344% and account for 18% of the market share.

However, IDC also mentioned in the report: "Phones with GenAI functionality are initially not cheap because the average selling price of these GenAI smartphones will be more than double the cost of non-GenAI phones, further promoting the high-end trend."