 "Generative AI smartphones' market share to reach 40% by 2027: Counterpoint")
Share of Generative AI smartphones in the market is expected to double by next year, and it is likely to surpass 40 per cent by 2027 – according to a report by Counterpoint. In a report published on December 20, the smartphone market tracker stated that the year 2024 will be pivotal for GenAI smartphones with data indicating shipments to reach over 100 million. Additionally, the report stated, shipments for GenAI smartphones are expected to reach 522 million units by 2027, growing at a CAGR of 83 per cent.
Explaining the GenAI smartphones, Counterpoint said these are devices that use Generative-AI to create original content rather than being restricted to performing predefined tasks and providing pre-programed responses. The smartphone should also be capable of running size-optimised AI models on the device itself and should have the required hardware to do so.
According to the Counterpoint report, South Korean electronics giant Samsung will likely capture 50 per cent market share in the segment for the next two years, followed by Chinese brands such as Xiaomi, Vivo, HONOR and OPPO. On the hardware side, Qualcomm is expected to capture over 80 per cent of the GenAI smartphone market for next two years, while MediaTek will likely play catch up.
“AI has been a feature of smartphones for the last few years. We now expect to see the emergence of smartphones optimised to run GenAI models in addition to the normal use of AI in smartphones.” said Peter Richardson, VP and Research Director at Counterpoint. “The likely use case of Gen-AI in smartphones will likely include the generation of more personalised content, smarter digital assistants, content recommendations, and more.”