The premium smartphone segment (wholesale price above $600) will drive GenAI smartphone shipments in 2024 and 2025.
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The premium smartphone segment (wholesale price above $600) will drive GenAI smartphone shipments in 2024 and 2025.
A new industry analysis says that Gen AI-enabled smartphones will exceed 730 million units by 2028, more than triple the estimated volume for 2024. According to Counterpoint Research’s AI 360 Service report, by 2028, 9 out of 10 smartphones priced above $250 will be GenAI capable, indicating the widespread adoption of GenAI.
As OEMs continue to refine and promote GenAI capabilities, its appeal will grow. Initially, most of the GenAI adoption will be concentrated in premium smartphones, but by 2026 and 2027, it will expand into the high ($400-$599) and mid-to-high ($250-$399) price segments. The high and mid-to-high segments are expected to contribute around 30 per cent of the GenAI smartphone shipments in 2026 and 2027, largely driven by Chinese brands.
Also read: Apple Reports All-Time Revenue Record in India, iPhone Sales Up Globally
While GenAI alone is unlikely to drive immediate upgrades due to a lack of compelling use cases compared to hardware advancements, this is said to change as the technology evolves.
The premium smartphone segment (wholesale price above $600) will drive GenAI smartphone shipments in 2024 and 2025, contributing around 80 per cent of the total volume.
"We expect smartphone revenues to continue to grow through 2028 as the premiumisation trend continues across markets. New technologies like GenAI and foldables are also likely to drive average selling price (ASP) growth as adoption rates rise," said Counterpoint Research Director Tarun Pathak.
GenAI adoption will expand to the high ($400-$599) and mid-to-high ($250-$399) price segments by 2026 and 2027 respectively, with these segments expected to contribute around 30 per cent of the GenAI shipments.
Advancements in hardware and software are democratising GenAI, likely driving adoption to sub-$250 smartphones by 2027-2028.
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