Tech industry research firm Canalys has released a complimentary report examining the potential impact of AI on the smartphone market. Entitled “Now and Next for AI-Capable Smartphones” the report forecasts that 16% of new smartphones shipped will be generative AI-capable by the end of 2024, driven by rapid advances in chipset technology and increasing consumer demand.
Canalys predicts that the market share of AI-capable smartphones will reach 54% by 2028, with a compound annual growth rate (CAGR) of 63% from 2023 to 2028. The firm sees this growth being fueled by consumer demand for enhanced multimodal AI functionality and personalized experiences for entertainment, communications, and productivity.
In addition to analyzing the strategies of major silicon and device players, including Apple, Qualcomm, MediaTek, Huawei, Google, Honor, Oppo, Samsung, and Vivo, the report also examines the key challenges these companies face in achieving clear differentiation in what is already a highly competitive marketplace.
While the proliferation of AI-capable smartphones presents substantial opportunities, it also brings issues such as ensuring robust privacy protections, developing a sustainable ecosystem for third-party AI applications, and educating consumers about the benefits and limitations of on-device AI functionalities. The report addresses these challenges, providing actionable insights on how to navigate them effectively.
The report is available for free from the Canalys website here. It provides essential reading for anyone who is interested in learning about the key technology and market trends that are set to drive the development of smartphone market over the next five years and beyond.
Long time technology industry fan here in Taiwan.
