One in three devices sold globally are GenAI-capable smartphones, says report
One in three devices sold globally are GenAI-capable smartphones according to a report by Counterpoint Research. The report also predicts that the number of GenAI-capable smartphones—devices capable of running Generative Artificial Intelligence models like ChatGPT and Gemini—will surpass 400 million units by 2025. This marks a significant increase from 2024, when roughly one in five smartphones featured GenAI capabilities.
Initially found in premium models, GenAI capabilities—enabling features such as advanced image processing, real-time language translation, and AI-powered content creation—are expected to reach the mid-range segment by 2025. The rapid integration of GenAI into smartphones is being driven by advancements in chipsets and the rise of more efficient and competitive lightweight large language models (LLMs).
GenAI dominates the smartphone market
Throughout 2024, smartphone brands positioned GenAI as a key differentiator, a trend likely to continue in 2025. However, consumer adoption of GenAI use cases remains limited, as they have not yet generated significant enthusiasm or offered daily utility. As a result, original equipment manufacturers (OEMs) are actively searching for breakthrough GenAI use cases that clearly benefit users and encourage upgrades beyond incremental hardware improvements.
Leading smartphone brands in the GenAI market
Apple and Samsung are expected to dominate the GenAI smartphone market in the early years, capitalising on their strong positions in the premium segment and developed markets. Their leadership is supported by deep ecosystem integration, seamless hardware-software optimisation, and a loyal high-end consumer base.
Both companies are actively investing in GenAI, with Apple Intelligence and Galaxy AI, and will continue expanding their AI capabilities through regular OS updates and a phased rollout of new features throughout 2025.
The democratisation of GenAI amartphones
The democratisation of GenAI-capable smartphones is anticipated to begin by late 2026 or early 2027, driven largely by Chinese brands such as Xiaomi, OPPO, Vivo, and HONOR. These brands are expected to expand GenAI capabilities into mid-range smartphone segments, making affordable GenAI smartphones more mainstream. As this happens, overall smartphone shipment growth is expected to accelerate, leading to a noticeable decline in Apple’s market share in the medium term.
Looking ahead: Agentic AI
Looking ahead, Agentic AI is emerging as the next big innovation in the smartphone industry for 2025. This technology is positioned to go beyond traditional GenAI assistants, offering more autonomous, context-aware, and action-oriented AI experiences. It is expected to become a unique feature in premium smartphones, further reshaping the role of AI in everyday mobile experiences.