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Generative AI Smartphones Expected to Double Market Share by 2025

In a significant development for the smartphone industry, the market share of Generative AI (GenAI) smartphones is anticipated to experience a substantial increase, with expectations of doubling by the upcoming year and potentially surpassing 40% by the year 2027. This insight is derived from a comprehensive report by Counterpoint, a renowned smartphone market tracker. The report underscores the pivotal role that the year 2024 is poised to play in the trajectory of GenAI smartphones, with shipments forecasted to exceed 100 million units. Looking ahead, the projection extends to 522 million units by 2027, indicating a noteworthy compound annual growth rate (CAGR) of 83%.

The dominance in this evolving market is anticipated to be spearheaded by technology giant Samsung, expected to secure a formidable 50% market share in the GenAI smartphone segment for the next two years. Following closely behind are prominent Chinese brands, including Xiaomi, Vivo, HONOR, and OPPO. On the hardware front, Qualcomm is foreseen to play a pivotal role, capturing over 80% of the GenAI smartphone market in the upcoming two years, with MediaTek striving to gain ground.

Generative AI smartphones are characterized by their ability to leverage Generative-AI for creating original content, transcending the limitations of predefined tasks and pre-programmed responses. A noteworthy aspect of these smartphones is their capacity to run size-optimized AI models directly on the device, supported by requisite hardware capabilities.

Counterpoint's Vice President and Research Director, Peter Richardson, highlighted the imminent shift, stating, "AI has been a feature of smartphones for the last few years. We now expect to see the emergence of smartphones optimized to run GenAI models in addition to the normal use of AI in smartphones." The anticipated use cases for GenAI in smartphones include the generation of more personalized content, enhanced digital assistants, content recommendations, and more.


As the smartphone landscape continues to evolve, these advancements in Generative AI promise to redefine user experiences and expectations. The trajectory outlined in the Counterpoint report underscores the increasing significance of AI-driven technologies in shaping the future of smartphones and consumer interactions.

Generative AI Smartphones Expected to Double Market Share by 2025
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