In a recent report by Counterpoint’s Global Handset Model Sales Tracker, it was revealed that GenAI-capable smartphones contributed 6% to global smartphone sales in the first quarter of 2024, showing a significant uptick from 1.3% in the previous quarter. This surge in GenAI-capable smartphone sales opens up new opportunities for smartphone brands, potentially driving market growth in the upcoming years. Premium smartphones with a wholesale price exceeding $600 accounted for over 70% of these sales, indicating a strong demand for high-end GenAI-capable devices.
Samsung’s Galaxy S24 series emerged as the leader in the GenAI-capable smartphone market during this period, securing the top three positions in the list of best-selling GenAI-capable smartphones. The Galaxy S24 Ultra, in particular, captured over 30% market share, surpassing the combined share of the next two smartphones. Samsung’s aggressive marketing strategies focusing on the GenAI capabilities of the Galaxy S24 series, coupled with its established global presence, enabled the brand to claim a significant 58% share of the GenAI segment.
The report also highlighted the growing presence of Chinese brands in the GenAI-capable smartphone market, with brands like Xiaomi, vivo, HONOR, and OPPO incorporating GenAI features such as AI-generated portraits, AI eraser tools, and robust offline virtual assistants in their offerings. China, becoming the largest GenAI-capable smartphone market globally, captured one-third of the market, showcasing the dominance of Chinese brands in this segment.
Looking ahead to the remainder of 2024, Counterpoint Research anticipates GenAI-capable smartphones will contribute 11% of the overall smartphone market as more use cases emerge and consumer awareness around the segment grows. Media-focused features and personalized virtual assistants are expected to be significant drivers of adoption. Additionally, the expected introduction of Apple into the GenAI segment later this year with its 2024 iPhone lineup could further boost the growth of this market segment.
Overall, the rise of GenAI-capable smartphones signifies a shift towards more intelligent devices that leverage generative AI models to enhance user experiences. With hardware advancements and an increased focus on AI capabilities, the smartphone industry is evolving to offer users a seamless and diverse set of features and functionalities.
