The global smartphone landscape is undergoing a rapid transformation, with GenAI-capable devices emerging as the new frontier. While Samsung continues to reign supreme, Chinese brands are making significant strides, capturing the hearts of consumers and a substantial market share.
According to a recent report by Counterpoint Research, GenAI-capable smartphones now account for 6% of global smartphone sales, a considerable jump from the previous quarter’s 1.3%. Samsung’s Galaxy S24 series has emerged as the undisputed leader, securing the top three spots on the list of best-selling GenAI smartphones. The Galaxy S24 Ultra alone boasts a market share of over 30%, a testament to Samsung’s aggressive marketing campaigns and the widespread popularity of its GenAI features such as circle to search, chat/note assist, and live translate.
However, the real story lies in the meteoric rise of Chinese smartphone brands. Xiaomi, Vivo, HONOR, and Oppo, who recently unveiled the Oppo A60 in the country with little fanfare, have collectively secured six positions in the top 10 list, demonstrating their unwavering commitment to innovation and cutting-edge technology. Their focus on the domestic market has propelled China to become the world’s largest GenAI-capable smartphone market, accounting for a third of global sales.
Xiaomi 14 and 14 Pro models, along with Vivo’s X100 that rocks Goodix’s affordable ultrasonic fingerprint scanner, have garnered significant attention from consumers, showcasing the prowess of Chinese brands in integrating GenAI features across their product lines. Features like AI-generated portraits and AI eraser tools have struck a chord with users, setting new standards for smartphone photography and editing. Unfortunately, getting hold of these phones in Kenya isn’t as straightforward as their midrange and budget counterparts.
Even Google’s Pixel 8 Pro, despite its limited availability, has managed to secure a spot in the top 10, proving that innovation and user-centric features can transcend geographical boundaries.
It’s worth noting that premium smartphones (wholesale price >$600) accounted for over 70% of GenAI-capable smartphone sales in Q1. On one side, this suggests that consumers are willing to invest in high-end devices to experience the latest in AI technology. On the other hand, it’s likely because GenAI technology is still a preserve for premium phones, but definitely not for long. In fact, the report says the number of GenAI-capable smartphone models increased from a mere 16 to over 30 during Q1, indicating brands’ growing interest in this segment. Granted, this number is only going to get bigger as the year progresses.
As the GenAI smartphone market continues to expand, we can anticipate even greater competition and a wider range of innovative features. Media-focused capabilities and personalized virtual assistants are expected to drive adoption, while the availability of more affordable GenAI-capable chipsets will further democratize access to this cutting-edge technology.
Looking ahead to the rest of 2024, it’s clear that the GenAI-capable smartphone market is only going to get hotter. With new use cases emerging and consumer awareness increasing, Counterpoint Research predicts that GenAI smartphones will account for a staggering 11% of the overall smartphone market by the end of the year.
With Apple’s anticipated entry into the GenAI segment later this year, the smartphone landscape is poised for even more exciting developments. I can assure you that GenAI is here to stay, and the battle for supremacy is only just beginning.
