The smartphone market is showing signs of recovery, with International Data Corporation (IDC) predicting global shipments to increase by 5.8% to 1.23 billion units in 2024. This positive outlook comes after two years of challenges and is fueled by the growing popularity of budget Android smartphones in China and emerging markets, as well as the adoption of generative artificial intelligence (GenAI) smartphones in luxury segments.
IDC anticipates a significant growth advantage for Android, with a projected 7.1% increase in shipments, driven by intense competition in the Chinese market. However, Apple is expected to benefit from the success of GenAI technology, particularly with the upcoming iPhone 16, as well as its strategic partnerships in China.
Apple’s recent efforts to strengthen its supply chain and manufacturing presence in China, including the launch of a new Apple store in Shanghai and CEO Tim Cook’s participation in the China Development Forum, demonstrate the company’s commitment to the market. Apple is also exploring the integration of Baidu’s advanced generative AI technology into its devices within China.
IDC projects that GenAI smartphones will capture an 18% market share by 2024, propelled by the premiumization trend. While Apple’s iOS growth is projected to be slower than Android in 2024, IDC expects a rebound in 2025 with a 4% year-over-year increase, driven by Apple Intelligence.
The positive outlook for Apple is reflected in its stock performance, with a 27% gain over the past 12 months. Investors can gain exposure to Apple through ETFs like the Vanguard Div Appreciation ETF (VIG) and iShares Core S&P Total U.S. Stock Market ETF (ITOT).
Wall Street analysts are also optimistic about Apple’s future, with an average 12-month price target of $240.54. The highest target stands at $300.00, while the lowest target is $164.00. A majority of analysts covering Apple have a positive rating, suggesting potential upside for the stock.
Apple’s stock has experienced significant growth this year, currently up 22.83% year-to-date. This performance, coupled with the positive outlook from analysts and IDC’s predictions, suggests that Apple is well-positioned for continued growth in the coming years.
This information is for informational purposes only and does not constitute investment advice.
