The coming year will be pivotal for Generative AI (GenAI) smartphones with preliminary data projecting their shipments to reach over 100 million units in 2024, according to an upcoming report from Counterpoint Research.

By 2027, the research group expects GenAI smartphone shipments to reach 522 million units, growing at a compound annual growth rate (CAGR) of 83%. Counterpoint Research defines GenAI smartphones as a subset of AI smartphones that uses Generative AI to create original content, rather than just providing pre-programmed responses or performing predefined tasks. 

These devices will run size-optimized AI models natively and come with certain hardware specifications. Our short-term GenAI landscape sees OEM roadmaps touching on four main areas – info provisioning, image building, live translation, and personal assistant applications.

Samsung and Qualcomm are immediate leaders as current product offerings and capabilities position them as first movers. Similar to what it did with foldables, Samsung is likely to capture almost 50% share for the next two years, followed by key Chinese original equipment manufacturers (OEMs) like Xiaomi, vivo, HONOR and OPPO. Samsung earlier highlighted the use case of its Galaxy AI on smartphones. 

Counterpoint says this is one example of how OEMs are geared to differentiate their upcoming smartphones and GenAI will play a key role in that differentiation. The research group adds that Qualcomm is likely to capture over 80% of the GenAI smartphone market for the next two years, and MediaTek is likely to catch up with its Dimensity 9300-based devices.

“The share of GenAI smartphones in the overall smartphone market will be in single digits through next year. But those numbers will not accurately reflect the amount of excitement and marketing hyperbole we are expecting to see,” Research Director Tarun Pathak. “We are working to a standard definition developed with our clients and partners, reflecting inputs from across these key players. Next year is about learning and we expect GenAI smartphones to hit an inflection point in 2026 as the devices permeate through the broader price segments.”



Article provided with permission from AppleWorld.Today