Introduction
In the first quarter of 2024, Samsung’s Galaxy S24 series emerged as the leader in the GenAI-capable smartphone market.
According to Counterpoint’s Global Handset Model Sales Tracker, GenAI-capable smartphones saw a significant rise in market share, climbing to 6% from just 1.3% in the previous quarter.
- GenAI-capable smartphones sales jumped significantly from 1.3% to 6% of the global market share in Q1 2024.
- Samsung captured a leading 58% share of the GenAI smartphone market in Q1 2024.
- All three models in the Galaxy S24 series (S24, S24 Plus, S24 Ultra) took the top three spots in the list of best-selling GenAI smartphones.
- The Galaxy S24 Ultra was the overall best-seller, holding over 30% of the market share on its own.
This success is attributed to a combination of factors including Samsung’s aggressive marketing of the GenAI features like chat/note assist, circle to search, and live translation, positive reviews, and their established brand presence.
This growth highlights the increasing consumer demand and potential for further expansion in this segment.
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What is GenAI Smartphone ?
A GenAI-capable smartphone is a mobile device that leverages generative AI, also known as GenAI, to create new content and perform tasks that are more context-aware than traditional AI. Here’s a breakdown:
Generative AI (GenAI): This type of AI goes beyond just analyzing data and making predictions. It can actually create entirely new things, like text, images, or code.
GenAI in Smartphones: Instead of relying solely on cloud-based AI, GenAI smartphones have the hardware and software muscle to run these generative AI models directly on the device. This allows for features that are more personalized, responsive, and even work offline.
Here are some examples of what GenAI capabilities might enable on a smartphone:
Enhanced virtual assistants: Imagine an assistant that can not just answer your questions but also write different creative text formats like poems, code, scripts or musical pieces based on your instructions.
Smarter photo editing: GenAI can automatically remove unwanted objects from photos, enhance low-resolution images, or even create entirely new artistic styles for your pictures.
Real-time translation that understands context: Imagine having a conversation in a foreign language where your phone translates not just the words but also the nuances and intent behind them.
The GenAI smartphone market is still young, but it’s expected to grow rapidly as chipmakers develop more powerful processors and manufacturers hone their AI features.
Market Growth and Premium Segment Dominance
GenAI-capable smartphones accounted for a notable 6% of global smartphone sales in Q1 2024.
This is a significant increase from the 1.3% share in the previous quarter, showcasing the rapid adoption of these advanced devices.
Image Source: Counterpoint
The premium segment, defined by a wholesale price of over $600, dominated GenAI-capable smartphone sales, contributing over 70% of the total sales in Q1.
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Samsung’s Leading Position
Samsung’s Galaxy S24 series dominated the GenAI-capable smartphone market, securing the top three spots on the best-selling list.
The Galaxy S24 Ultra led the market with over 30% share, outperforming the combined share of the next two smartphones.
Samsung’s aggressive marketing campaigns and strong global presence helped it capture a 58% share of the GenAI segment.
Popular features like chat/note assist, circle to search, and live translate have received positive reviews from users, further boosting sales.
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Chinese OEMs Making Significant Inroads
Chinese brands captured six positions in the top-10 list of best-selling GenAI-capable smartphones in Q1 2024.
Xiaomi’s 14 and vivo’s X100 models ranked fourth and fifth, respectively. Leading Chinese brands such as Xiaomi, vivo, HONOR, and OPPO are rapidly integrating GenAI features into their devices.
These features include AI-generated portraits, AI eraser tools, and robust offline virtual assistants.
Focusing on their domestic market first, Chinese brands have made China the largest GenAI-capable smartphone market, capturing one-third of the global share.
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Future Projections
For the rest of 2024, GenAI-capable smartphones are expected to contribute 11% of the overall smartphone market.
As new use cases emerge and consumer awareness grows, the adoption of these devices is likely to increase. Media-focused features and personalized virtual assistants are predicted to be major drivers of this growth.
Additionally, the introduction of more affordable GenAI-capable chipsets by major semiconductor firms will support this segment’s expansion.
Apple is also anticipated to enter the GenAI segment later this year with its 2024 iPhone lineup.
Defining GenAI-Capable Smartphones
Counterpoint Research defines GenAI-capable smartphones as those using large-scale, pre-trained AI models.
These models create original content or perform context-aware tasks. GenAI smartphones process text, images, voice, and other inputs.
They generate various outputs for a seamless user experience. These devices need hardware similar to or better than current flagship smartphones to run AI models effectively.
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Conclusion
Samsung’s dominance in the GenAI-capable smartphone market, along with the rapid adoption of these advanced devices, marks a significant shift in the smartphone industry.
With Chinese OEMs also making substantial inroads, the competition in the GenAI-capable smartphone market is heating up.
As new technologies and features continue to evolve, the future of GenAI-capable smartphones looks promising, driving both innovation and growth in the global market.
