Explained: What GenAI smartphones are and what they could mean for consumers and smartphone brands – Times of India

Next year will be crucial for Generative AI (GenAI) smartphones, with preliminary data that shipments will reach 100 million units in 2024, according to an upcoming report titled “GenAI Smartphone Shipments and Insights” from Counterpoint Research. The report predicts that GenAI smartphone shipments will reach 522 million units by 2027, growing at a CAGR of 83%.
“Part GenAI smartphones The overall smartphone market will be in the single digits next year. But these numbers don't accurately reflect the amount of hype and marketing hyperbole we've come to expect,” said Tarun Pathak, director of research at Counterpoint. “We are working with our customers and partners on a standard definition that reflects the input of these key players. Next year is about learning and we expect GenAI smartphones to reach an inflection point in 2026 as devices enter wider price segments,” he added.
What are GenAI smartphones?
The study defines GenAI smartphones as a subset of AI smartphones that use Generative AI to create original content, rather than simply providing pre-programmed responses or performing predetermined tasks. These devices will work with size-optimized AI models and come with certain hardware specifications. The GenAI landscape sees OEM roadmaps addressing four key areas – information provisioning, imaging, live translation and personal assistant applications. In short, any smartphone that has a large language model in memory that it uses to deliver original content upon user request is a GenAI smartphone.
Examples of GenAI on your phone
Google Pixel 8, which uses a proprietary processor and on-device LLM, can summarize the content you record using the voice recorder. The search giant recently announced this feature with the launch of Gemini. Smartphone giant Samsung also announced its own AI model, called Gauss, designed to work on native phones and generate text, code and images.
Samsung and Qualcomm to bullet
Samsung and Qualcomm are said to be the current leaders as their existing product offerings and capabilities make them first movers. According to the report, Samsung is expected to lead the market. “Just as it did with foldable devices, Samsung is expected to capture nearly 50% share in the next two years, followed by major Chinese OEMs such as Xiaomi, vivo, HONOR and OPPO. Samsung has previously highlighted the use case for Galaxy AI on smartphones. This is one example of how OEMs are positioned to differentiate their upcoming smartphones, and GenAI will play a key role in that differentiation.
As for processors, Qualcomm is expected to capture 80% of the GenAI smartphone market in the next two years. MediaTek is expected to reach its Dimensity 9300 based devices.