(Bloomberg) — Global smartphone sales rebounded strongly in 2024 after two straight years of declines, but Apple Inc. (AAPL) barely managed growth, an independent study showed, underscoring the speed at which Android-based Competitors in China and emerging markets are gaining ground.

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According to market researcher IDC, Apple and its competitors will ship 6.2% more phones in 2024, or an estimated 1.24 billion units. But iPhone volumes probably only rose 0.4%. Still, Apple remains by far the profit leader with an average selling price of over $1,000, while its Android competitors combined for about $295, according to IDC estimates.

The latest study highlights the uneven recovery of the smartphone market, which slumped in the post-Covid era despite the emergence of AI. Much of this growth in 2024 will come from pent-up demand and regions with lower smartphone penetration, IDC said. More affordable devices from Android vendors helped Chinese brands better capitalize on this opportunity, while Apple is expected to do better next year.

The addition of artificial intelligence improvements, a big theme at companies like Samsung Electronics Co. (005930.KS, SSNLF), Apple and Alphabet Inc.’s (GOOG, GOOGL) Google, failed to excite consumers.

“While GenAI remains a hot topic and top priority for many vendors, it is not yet having a significant impact on demand and driving early upgrades,” said Nabila Popal, research director at IDC. “Further investment is needed to raise consumer awareness and introduce a ‘must-have’ feature that drives consumers into the store and creates the super cycle everyone is waiting for.”

Brands like Xiaomi Corp. (XIACY, 81810.HK) and Huawei Technologies Co. are investing in hardware and developing their own processors – to mitigate the threat or impact of US sanctions while adapting their designs to AI use cases. Huawei on Tuesday unveiled its latest smartphone powered by its Chinese-made chips, while Xiaomi is preparing an in-house semiconductor for 2025 devices.

In the highly competitive Chinese market, where half a dozen companies take the top spot each quarter, large and sustained discounts stimulated sales. These had a greater impact than last year, although concerns about the country’s struggling economy are likely to continue.

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