- China becomes world’s largest GenAI-capable smartphone market, capturing one-third of the global market.
- GenAI-capable smartphones’ share in global smartphone sales increased to 6% in first quarter of 2024 from just 1.3 per cent in the previous quarter.
- The premium segment contributed over 70 per cent of GenAI-capable smartphone sales in first quarter.
Samsung Galaxy S24 series dominated the GenAI-capable smartphone market in the first quarter of the 2024, securing the top three spots in the top 10 list.
The S24 Ultra, commanding over 30 per cent market share, was the best-selling GenAI-capable smartphone, more than the combined share of the next two smartphones.
According to Counterpoint Research, Samsung’s aggressive marketing campaign highlighting the S24’s GenAI , coupled with its established global presence, led the brand to take a 58 per cent share of the GenAI segment.
GenAI features like chat/note assist, circle to search, and live translate are gaining traction with users and garnering positive initial reviews.
Smartphones with Gen-AI-capable contributed 6 per cent to global sales in the first quarter, a significant increase from just 1.3 per cent in the previous quarter.
GenAI capabilities have opened new opportunities for smartphone brands and may potentially drive the market’s growth in the coming years.
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Premium smartphones (wholesale prices above $600) accounted for over 70 per cent of GenAI -capable smartphone sales and the number of GenAI-capable smartphone models increased from 16 to over 30 during the first quarter, indicating brands’ growing interest in this segment.
Chinese brands’ strategy
Even though Samsung’s phones captured the top three spots, Chinese brands captured the lower six positions and Google’s Pixel 8 Pro captured the tenth spot.
The Xiaomi 14 and vivo X100 models ranked fourth and fifth, respectively. Leading Chinese brands like Xiaomi, Vivo, Honor and Oppo are aggressively integrating GenAI features across their offerings, including features like AI-generated portraits, AI eraser tools and robust offline virtual assistants.
Chinese brands’ strategy to focus on their home market first has led to China becoming the world’s largest GenAI-capable smartphone market, capturing one-third of the global market.
GenAI-capable smartphones are expected to capture 11 per cent of the overall market in 2024 as newer use cases arise and consumer awareness increases around the segment. Media-focused features and personalised virtual assistants are expected to be major drivers of adoption.