Smartphone Industry Bets Big on Gen AI for Future Market Dominance

The global smartphone market, which saw a 6.5% growth to 285.4 million units in the second quarter of 2024 compared to the same period last year, is gearing up for another significant transformation.

Industry analysts and tech giants are increasingly betting on Generative Artificial Intelligence (Gen AI) as the next big frontier to drive smartphone sales and user experience, a new report by the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker has shown.

While Samsung and Apple continue to dominate the market share, Business Remarks finding revealed that the competitive landscape is heating up with a surge in popularity for lower-priced smartphones. However, the spotlight is shifting towards the integration of Gen AI capabilities into devices. Industry experts predict that Gen AI-powered smartphones will be a major catalyst for growth in the second half of the year.

The potential applications of Gen AI in smartphones are vast. From advanced image and video editing to real-time language translation and personalized recommendations, the technology promises to revolutionize how users interact with their devices. Additionally, Gen AI can enhance features like virtual assistants, making them more intelligent and responsive to user needs.

As the competition intensifies, smartphone manufacturers are investing heavily in research and development to integrate Gen AI seamlessly into their devices. The success of these efforts will likely determine the market leaders of the future. Consumers can expect to see a new wave of innovative smartphones that leverage the power of Gen AI to offer unprecedented levels of convenience and personalization.

Speaking  on this, the senior research director with IDC’s Worldwide Tracker team, Nabila Popal said, “Still, there is lots of excitement in the smartphone market today thanks to higher average selling prices (ASPs) and the buzz created by Gen AI smartphones, which are expected to grow faster than any mobile innovation we have seen to date and forecast to capture 19% of the market with 234 million shipments this year.”

While the second quarter of 2024 witnessed a positive growth trajectory for the smartphone market, the industry is cautiously optimistic about the long-term prospects. The full impact of Gen AI on consumer behavior and purchasing decisions remains to be seen. Nevertheless, there is a growing consensus that this technology will play a pivotal role in shaping the future of the smartphone industry.