NEW DELHI: Nine out of 10 smartphones priced above 250 dollar will be GenAI-capable by 2028, signalling the widespread adoption of Generative AI, says a new report by Counterpoint Research.
The paper also projects that GenAI smartphone shipments will exceed 730 million units by 2028, more than thrice the estimated volume for 2024.
The smartphone industry is moving toward hyper-personalisation driven by Generative AI. The impact has been significant within just a year of the release of the first GenAI-capable phone.
“The industry is shifting focus from traditional hardware advancements, such as bigger screens, faster processors and more cameras, to offering more intelligent, adaptive and personalized user experiences,” reads the report.
The document also notes that hyper-personalisation, which has started with premium smartphones, will eventually extend to high-, mid-, and low-end devices as GenAI technology matures. In 2024 and 2025, the premium smartphone segment (wholesale price above 600 dollar) is expected to be a major driver of GenAI smartphone shipments, contributing around 80% of the total volume.
The report emphasises that as OEMs continue to refine and promote GenAI capabilities, its appeal will grow. Initially, most GenAI adoption will be concentrated in premium smartphones, but by 2026 and 2027, it will expand into the high (400-599 dollars) and mid-to-high (250-399 dollars) price segments.
“The high and mid-to-high segments are expected to contribute around 30% of GenAI smartphone shipments in 2026 and 2027, largely driven by Chinese brands,” the report states.
The smartphone industry is accelerating the democratisation of GenAI by driving innovations in hardware and software, making the technology more accessible even in lower-priced smartphones. For instance, chipset manufacturers such as Qualcomm are introducing GenAI-optimised processors in their mid- and high-end portfolios, while leading companies in the LLM space are developing lighter models with various optimisation techniques to ensure high performance.
The report also notes that smartphone OEMs are actively promoting GenAI to enhance the overall user experience. They have even begun delivering software
upgrades for older smartphones to provide a glimpse of GenAI capabilities. This momentum is expected to drive the adoption of GenAI in the sub-250-dollar segment by 2027 and 2028, further boosting shipment growth.