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AI on a budget? Your next affordable smartphone could be smarter than you think

A whopping 9 out of 10 smartphones priced in the sub-$250 price range will be AI-powered by 2028.

Hillary Keverenge by Hillary Keverenge
January 16, 2025
in News
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AI on a budget? Your next affordable smartphone could be smarter than you think

Source: Google

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The future is looking pretty smart — and not just for those flashy, high-end phones. Generative AI (GenAI) has been the tech darling of premium smartphones for the past year, and it’s not stopping anytime soon. According to Counterpoint Research, the high-end segment (wholesale price above $600) is driving GenAI smartphone shipments in 2024, making up a whopping 80% of the market. But don’t fret if you’re shopping in the more budget-friendly aisles — GenAI’s reach is extending down the price ladder, slowly but surely, to lower-cost phones.

For those of us not dropping $600 (let’s just say Kshs 70,000 for the sake of argument) or more on a device, GenAI is still on the horizon. By 2026, high-tier devices priced at $400-$599 will join the GenAI revolution, and by 2027, even mid-range phones between $250 and $399 will get a taste of the AI magic. The data suggests that these price bands will together contribute around 30% of GenAI smartphone shipments in the coming years. So, yes, your next phone might very well have a few tricks up its sleeve — even if it doesn’t come with a premium price tag.

In fact, the industry is working hard to democratize GenAI, bringing this tech closer to the average consumer. Qualcomm, for example, has been tinkering with GenAI-optimized processors for mid-range devices, making GenAI tech more accessible and efficient. Simultaneously, AI innovators are busy crafting leaner, meaner machine-learning models, so that your smartphone can handle AI tasks without needing the processing power of a supercomputer.

Counterpoint-Research-on-budget-AI-smartphones-by-2028

What’s even more exciting is that the forecast doesn’t stop at mid-range. By 2027 and 2028, smartphones in the sub-$250 segment are expected to start flexing some GenAI muscle too. As per the report, a whopping 9 out of 10 smartphones priced in this price range will be AI-powered. Sure, they won’t be as powerful as the higher-end models, but imagine a $150 (Kshs 20,000) smartphone still able to help you organize your photos or automate simple tasks.

For now, premium models are still the flag bearers of GenAI, but that’s only temporary. The AI invasion is headed straight for our budget-friendly smartphones. Today, GenAI in affordable models like the Infinix Hot 50 Pro+ might mean basic photo enhancement or some handy voice assistants. But a few years down the line? Who knows — maybe even your entry-level phone will know your morning routine better than you do.

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READ:  Samsung Galaxy A16 4G is here, price starts at Kshs 22,995
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