Rush to capture AI driven smart phones
Introduction
The rush to capture the AI-driven smartphone market is intensifying as major players in the tech industry recognize the potential of generative AI to revolutionize mobile devices. This trend is reshaping the competitive landscape and driving innovation across the semiconductor and smartphone sectors.
Market Projections and Growth
Canalys projects significant growth in AI-capable smartphones:
16% of new smartphones shipped will be generative AI capable by the end of 2024
28% by 2025
54% by 2028, representing a 63% CAGR from 2023 to 2028
IDC’s forecast is even more optimistic:
364% year-over-year growth in Gen AI smartphone shipments in 2024, reaching 234.2 million units
912 million units by 2028, with a CAGR of 78.4% for 2023-2028
Key Players and Strategies
Qualcomm
Leading in on-device generative AI
Expanding AI capabilities through Snapdragon processors
Forecasting at least 50% of PCs will be AI capable by 2027
Samsung
Launched Galaxy S24 Ultra with AI features like transcription summarizer and real-time voice translation
“Powered by Galaxy AI” marketing strategy influencing consumer behavior
Pixel 8 Pro offers AI features such as summarizing recorded conversations and AI-generated wallpapers
Apple
Planning to introduce AI features to iPhone, iPad, and Mac later this year
Maintaining strong sales despite not rushing into AI
Other Players
Xiaomi, OPPO, Honor, and Motorola are also introducing AI-enabled smartphones with various features
Impact on Semiconductor Industry
The rush for AI-driven smartphones is transforming the semiconductor industry:
Increasing demand for specialized chips and components
Driving innovation in chipset technologies
Expanding focus on edge AI and mobile AI applications
Consumer Adoption and Marketing
One in four Galaxy S24 buyers cited AI as a key reason for their purchase
AI features are influencing consumer behavior and decision-making
Manufacturers may package exclusive AI features into subscription offers
Challenges and Considerations
Ensuring robust privacy protections and developing sustainable ecosystems for third-party AI applications
Educating consumers about on-device AI functionalities
Potential supply chain constraints, particularly for bleeding-edge fabs manufacturing advanced chips
Conclusion
As the race to capture the AI-driven smartphone market intensifies, companies that can effectively leverage AI technologies and communicate their benefits to consumers are likely to gain a competitive edge in this rapidly evolving landscape.
