| • Smartphones are about to get smarter when they come with Gen AI capabilities. A wave of such new models will hit the market soon. • The wave will turn tsunami-like. Just look at the forecasts in the chart below by International Data Corporation (IDC). It is the premier global market intelligence, data, and events provider for the information technology, telecommunication, and consumer technology markets.  • It's not just smartphones but also laptops/PCs where GenAI will become a de facto and must-have capability. Thus, AI PCs are expected to be a significant growth driver in the second half of 2024. Gartner forecasts 54.5 million AI PCs will be shipped by the end of 2024. • DBS Bank's analyst report yesterday states the 4 Hong Kong-listed stock picks that will ride the GenAI wave for smartphones. Read more below... |
By DBS Bank
2Q24 global smartphone shipments increased 6.5%, meeting expectations
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2Q24 shipments in line with market expectations. IDC announced yesterday that global smartphone shipments increased 6.5% y/y to 285.4 million units in 2Q24, vs. 7.8% y/y in 1Q24, in line with market expectations.
The resurgence was primarily driven by
| (1) iPhone's improved performance in China following sales discounts and (2) Xiaomi’s strong performances in emerging markets. |
iPhone shipments resumed growth of 1.5% y/y in 2Q24.
Meanwhile, Xiaomi’s shipments increased 27.4% y/y, with 1H24 shipments already meeting the guidance of an annual increment of 15-20mn units in 2024.
IDC also noted continuous handset ASP growth driven by the ongoing premiumization trend of smartphones.
Continued growth expected in 2H24; Gen AI smartphones to drive market. The continuous growth reflects an ongoing recovery, though demand remains uneven across various markets.
We anticipate the global smartphone market to grow at 7.7% y/y in 2H24, bolstered by the launch of Gen AI smartphones like the iPhone 16, Xiaomi 15, and Mate70.
Market sentiment along the smartphone supply chain is expected to remain positive as global shipments sustain their upward trend.
| We expect ASPs to continue growing in 2H24, supported by Gen AI smartphones and foldable phones. OEMs like Xiaomi are expected to benefit from the premiumization trend, supported by the AI-enhanced Xiaomi 15 launching in October 2024. We see room for an upward revision of its FY24 earnings. iPhone suppliers like AAC Tech, BYDE, and Sunny Optical are set to gain from the specification upgrades of Apple’s first AI phone and further penetrate the iPhone value chain. |
