Although global smartphone sales are expected to grow to 1.24 billion units this year, Apple’s (AAPL+0.91%) Performance has barely improved, according to a new study.

Apple and its competitors are expected to ship 6.2% more phones in 2024. according to market research firm IDC. But Apple’s iPhone sales are expected to grow just 0.4%, a marginal increase compared to its rivals.

The good news for Apple is that the tech giant is still the industry’s profit leader. According to IDC, Apple sells each of its smartphones for about $1,000, while Android competitors sell their phones for about $295 overall. In October, $46.22 billion Apple’s total revenue of $94.9 billion came from iPhone sales, up 6% year over year.

The IDC said much of this year’s growth was due to pent-up demand and regions where smartphones have not yet significantly penetrated the market. While Apple is expected to perform better in 2025, cheaper devices from Android sellers have helped Chinese brands increase their sales.

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And despite new investments in artificial intelligence by companies like Apple, GoogleAnd SamsungCustomers aren’t really interested – yet.

“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, senior researcher at IDC, in a statement.

Popal added that generative AI will “revolutionize the user experience,” noting that more investment is needed to increase consumer awareness and interest in such features to stimulate demand and end the “super cycle.” to create what the industry is looking for. By 2028, IDC expects smartphones using generative AI to grow to 70% of the total smartphone market.

This is somewhat consistent with what Jefferies (JEF-0.05%) analysts warned earlier this month. In a note following Apple’s third-quarter earnings report, Jefferies warned that iPhone sales momentum was likely due to an earlier launch of the iPhone 16 compared to the iPhone 15, noting that AI features are likely for one Won’t have any impact on sales for a while.

Apple has officially launched it new artificial intelligence functionsknown as Apple Intelligencefor users with the iPhone 15 Pro or iPhone 16 in October. CEO Tim Cook said that Apple Intelligence “marks the beginning of a new chapter” for the company’s innovation and that new features, including ChatGPT integration, will launch in December with more to come in the future.

This staggered approach will likely pay off in 2026 or 2027, Jefferies analysts said at the time, warning that “current expectations for Apple Intelligence to initiate a super-upgrade cycle are too high.”

—Rocio Fabbro contributed to this article.