Aug 27 (Reuters) - Research firm IDC raised its forecast

for full-year global smartphone shipments on Tuesday, citing

strong growth in the first half of the year as consumer

electronics demand recovers and artificial intelligence features

attract buyers.

IDC expects shipments to grow 5.8% to 1.23 billion units in

2024, up from its previous forecast of 4% growth to 1.21 billion

units.

WHY IT'S IMPORTANT

In an uncertain economy where price-conscious consumers

typically hesitate to make big purchases, the forecast raise

suggests that the new AI features might boost demand in key

markets like the U.S. and China, which is recovering after a

prolonged slump.

KEY QUOTE

"Although GenAI smartphones are relatively new in the

market, premium flagships will continue to adopt GenAI features

to help separate them from the pack," said Anthony Scarsella,

research director with IDC's Worldwide Quarterly Mobile Phone

Tracker.

CONTEXT

Apple ( AAPL ) is set to hold its fall event on Sept. 9 at its

headquarters in Cupertino, California, where it is expected to

unveil new iPhones, as it looks to reverse a global sales

slowdown, particularly in China.

At its developers conference in June, Apple ( AAPL ) unveiled a

series of AI features for its operating system under the name

"Apple Intelligence".

Earlier this month, Alphabet's Google also announced its new

line of Pixel smartphones with deep AI integration.

BY THE NUMBERS

IDC predicts GenAI smartphones will surge 344%, capturing

18% of the market by the end of 2024 as more flagships adopt

built-in generative AI features for daily use.

The firm projects Apple's ( AAPL ) iOS growth trajectory to improve

in 2025 with 4% year-over-year growth, thanks to Apple

Intelligence.