According to Global Handset Model Sales Tracker report by Counterpoint Research, generative artificial intelligence (GenAI)-capable smartphones have contributed 6 per cent to global smartphone sales in first quarter (Q1) of 2024, a significant increase from just 1.3 per cent in Q4 of 2023.
The report noted that GenAI capabilities have opened new opportunities for smartphone brands and may potentially drive the market’s growth in the coming years. Premium smartphones (wholesale price more than $600) accounted for over 70 per cent of GenAI-capable smartphone sales in Q1. The number of GenAI-capable smartphone models increased from 16 to over 30 during just Q1, indicating brands’ growing interest in this segment.
The report highlighted that Samsung’s Galaxy S24 series dominated the GenAI-capable smartphone market in Q1, securing the top three spots in the top ten list for best-selling GenAI-capable smartphones. The Galaxy S24 Ultra was the best-selling GenAI-capable smartphone, commanding over 30 per cent market share, more than the combined share of the next two smartphones. As per the report, Samsung’s aggressive marketing campaign highlighting the Galaxy S24’s GenAI capabilities, coupled with its established global presence, led the brand to take a 58 per cent share of the GenAI segment. GenAI features like chat/note assist, circle to search, and live translate are gaining traction with users and garnering positive initial reviews.
In addition, Chinese brands captured six positions in the top ten list. The Xiaomi 14 and vivo X100 models ranked fourth and fifth, respectively. Leading Chinese brands like Xiaomi, vivo, HONOR and OPPO are aggressively integrating GenAI features across their offerings, including features like AI-generated portraits, AI eraser tools and robust offline virtual assistants. Further, Chinese brands’ strategy to focus on their home market first has led to China becoming the world’s largest GenAI-capable smartphone market, capturing one-third of the global market.
Furthermore, the report estimated that GenAI-capable smartphones will contribute 11 per cent of the overall smartphone market in 2024 as newer use cases arise and consumer awareness increases around the segment. Moreover, media-focused features and personalised virtual assistants are expected to be major drivers of adoption. On the hardware side, more GenAI-capable chipsets from major semiconductor firms at affordable prices will further aid the growth of the segment. The report further added that the entry of Apple later in 2024 into the GenAI segment is expected with its 2024 iPhone lineup.
