Market Around Smartphones Grows to 38.9 Billion Euros
Robust devices, high investments in network expansion, stable sales figures: The German market for smartphones, apps and mobile communication is set to grow to 38.9 billion euros in 2024. This is a new record high. Compared to the previous year (38.4 billion euros), the increase is 1.3%. These are figures from the digital association Bitkom, Berlin (Germany).
The growth is primarily driven by investments in network infrastructure and increasing revenues from mobile telecommunications services. Voice and data services account for the largest share at 22.9 billion euros. The segment is expected to grow by 1.9% this year. Investment in mobile infrastructure by network operators is increasing even more, expected to rise by 3.4% to 2.4 billion euros in 2024. Additional expenses for frequencies, buildings and construction work, which are not included in these figures, are also increasing. "The networks are becoming faster and better. Germany has made great strides in network expansion," says Bitkom board member Markus Haas. "Investments in Germany's mobile infrastructure will continue to increase in 2024."
As for smartphones themselves, sales are expected to reach 11.4 billion euros, the same as the previous year. However, sales are significantly increasing: In 2024, 21.8 million devices will be sold, 8.4% more smartphones than the previous year, when 20.1 million units were sold. "Smartphones have become indispensable for many people. We communicate with them, entertain ourselves, educate ourselves or control connected devices. The immense significance is reflected in a significant increase in unit sales in 2024," says Haas.
Affordable Models Lower the Average Price
The average price per smartphone is decreasing this year. While an average of 567 euros per smartphone was spent in 2023, in 2024, it is now only 523 euros – 7.8% less than the previous year. "Affordable entry-level models are gaining market share," explains Haas. "Overall, many consumers prefer to spend more money to ensure that they get more out of their devices." There is slight growth again in the app market. Revenue from mobile applications is expected to increase by 2.0% to 2.24 billion euros.
Smartphones Are not Being Replaced as Quickly
People in Germany are using their privately used and self-purchased smartphones for longer periods than before. Currently, the average age of a self-purchased smartphone is 17.5 months. On average, users intend to spend a maximum of 241 euros on their next smartphone – in 2023, it was 238 euros.
Methodology Note
The forecasts for the smartphone market are based on data from the market research institutes IDC and Research2Guidance. The information on smartphone and mobile phone usage is based on a survey conducted by Bitkom Research on behalf of the digital association Bitkom. A total of 1,007 people aged 16 and over in Germany were surveyed by telephone. The survey took place in the period from week 1 to week 3 of 2024. According to Bitkom, the survey is representative.
Caption: Germans spend on average 523 euros for their smartphone. Affordable entry-models are gaining market share. (Picture: Samsung)