Half of Smartphones Next Year Will Feature AI: "The Era of AI Smartphones"

On-Device AI Gains Momentum

It has been forecast that by next year, half of the world's smartphones will be on-device AI smartphones equipped with generative artificial intelligence (AI).

Counterpoint Research Generative AI Smartphone Outlook. Counterpoint Research.

On June 24, market research firm Counterpoint Research predicted that this year, generative AI-enabled smartphones will account for 45% of global smartphone shipments. This represents a 9-percentage point increase from 36% last year.

Counterpoint Research also projected that the share of generative AI smartphones would rise to 52% of total smartphone shipments by 2027, making generative AI technology the standard across the market.

Meanwhile, due to a shortage in memory supply, global smartphone shipments this year are expected to fall by 13.9% year-on-year, reaching only 1.08 billion units and marking an all-time low.

Counterpoint Research analyzed that rising component prices are reducing the supply of low-end products and increasing the market dominance of premium generative AI smartphones.

Research Director Tarun Pathak stated, "Major brands are competitively adopting generative AI features for differentiation, and the shift from cloud-based AI to on-device AI is accelerating. While generative AI features have become standard in high-end smartphones with a wholesale price of over $400, they have not yet offered enough appeal to stimulate replacement demand among consumers."

This content was produced with the assistance of AI translation services.