Counterpoint Research predicts that Qualcomm will gain over 80% market share in the Generative AI (GenAI) smartphone chip market in the next two years, while MediaTek will catch up with its Dimensity 9300 chip.
The upcoming year is crucial for GenAI smartphones. Preliminary data indicates shipments surpassing 100 million units by 2024. By 2027, GenAI smartphone shipments are expected to reach 522 million units, with a compounded annual growth rate of 83%.
Counterpoint defines GenAI smartphones as a subset of AI-powered smartphones that use generative AI to create original content rather than solely providing pre-programmed responses or executing predetermined tasks.
These devices will feature specified hardware specifications and will run locally optimized AI models. The research company notes four main areas in the short-term GenAI roadmap for OEMs – information configuration, image construction, real-time translation, and personal assistant applications.
Samsung and Qualcomm lead directly due to their current product supply and capabilities, positioning them as “pioneers.”
Samsung is anticipated to hold over 50% market share in the next two years, followed by major Chinese manufacturers like Xiaomi, Vivo, Honor, and Oppo, similar to their performance in the foldable device sector.
Samsung earlier emphasized its Galaxy AI use cases in smartphones.
This serves as an example of how OEMs intend to differentiate their next-gen smartphones, with GenAI playing a crucial role in this differentiation.
By 2023, GenAI smartphones will hold a 4% market share; this figure is expected to more than double by 2024.
It is projected that GenAI smartphone shipments will surpass 500 million units by 2027, capturing a 40% market share.
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