In a new analytical report published yesterday afternoon they note that by the end of 2024, Samsung and Apple are set to capture over 75% of the global GenAI smartphone market, mainly driven by their strong presence in developed markets and dominance within the premium smartphone segment.

Both brands are leveraging their premium positioning to capture early adopters, particularly in developed regions where high disposable income and interest in new technologies drive demand for top-tier smartphones. Over the short-term, GenAI will rule the premium smartphone category while through the medium-term we expect it to expand in segments past mid-end devices.

It has been about a year since the launch of the first GenAI smartphone and the impact is undeniable. The shipment share of GenAI smartphones is forecast to reach 19% in 2024. By 2028, this share is expected to reach 54% with shipments surpassing 730 million units, more than 3x the projected levels in 2024, according to Counterpoint Research.

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Competition among smartphone OEMs will tighten further, shifting from a tussle based on specs to one based on delivering true personalization. The key for OEM differentiation will lie in the implementation of AI, and we are already starting to see this evolution of AI use cases. Current applications include enhanced imaging capabilities, translation features, improved app experiences, content recommendations, and personalized content creation.

The emergence of generative AI (GenAI) is transforming the smartphone industry, shifting focus from hardware advancements to delivering intelligent, adaptive, and personalized experiences. While hardware innovation has slowed, the industry is now centered on hyper-personalization powered by GenAI.

Counterpoint has prepared a new 8-page PDF that you could download here. The report covers the following:

• Rise of Generative AI in Smartphones
• Transforming Smartphones with Hyper-Personalization
• GenAI Changing the Smartphone Semiconductor Landscape