Generative artificial intelligence (Gen AI) technology is taking a central role in the future of smartphones, driving fierce competition between giants such as Apple and Samsung. The promise of greater personalization and efficiency is attracting millions of consumers.
A recent study by Counterpoint Research reveals that 59% of users plan to purchase a Gen AI-enabled device by 2025, showing that this trend is more than just a fad.
The Takeoff of Generative Artificial Intelligence Smartphones
The United States leads the advancement of this technology, followed closely by Germany and France. This data shows that interest in Generative Artificial Intelligence smartphones is on the rise, backed by a strong marketing campaign.
Mohit Agarwal, research director at Counterpoint, says smartphones are key to the proliferation of this technology, while effective marketing creates greater consumer awareness.
In Q3 2024, devices with Gen AI capabilities accounted for 18.3% of global smartphone sales. More than 80 models from 18 brands are available, with the majority targeting the premium market.
Apple stood out with its iPhone 15 Pro series and the release of iOS 18.1, while Samsung follows closely behind with its Galaxy Flip6, Fold6 and S24 FE models. However, by 2025, the technology is expected to expand to mid-range phones, opening up access to more users.
The Challenge of Pricing and Mass Adoption
Despite growing demand, manufacturers face a major challenge: balancing innovation with affordability. While 69% of respondents are willing to pay extra for a Gen AI-enabled device, only 19% are willing to take on a significant increase in price.
This dilemma between the desire for advanced technology and the need to keep prices reasonable is a stumbling block for many manufacturers.
Agarwal warns that, to overcome this barrier, companies may need to adopt cheaper models and explore new revenue streams. Monetizing applications or offering developer services could be viable alternatives to cushion device costs.
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