A recent report by Counterpoint Research predicts that Qualcomm will acquire more than 80% of the generative AI (GenAI) smartphone chip market over the next two years, while MediaTek with its Dimensity 9300 chips will catch up.
According to Counterpoint, the forthcoming year will be critical for GenAI smartphones, as initial data indicates that their shipments will surpass 100 million units in 2024. "By 2027, we expect GenAI smartphone shipments to reach 522 million units, growing at a CAGR of 83%."
Counterpoint defines GenAI smartphones as a subset of AI smartphones that uses generative AI to create original content rather than simply offering pre-programmed responses or executing predetermined tasks. These devices will be equipped with specified hardware specs and will run size-optimized AI models natively. "Our short-term GenAI landscape sees OEM roadmaps touching on four main areas - info provisioning, image building, live translation, and personal assistant applications," said the research firm.
Samsung and Qualcomm are immediate leaders since their current product offers and capabilities place them as "first movers," Counterpoint said. Samsung is expected to take over 50% of the market in the next two years, similar to what it did with foldables, followed by key Chinese OEMs such as Xiaomi, Vivo, Honor, and Oppo, according to the firm.
Samsung earlier highlighted the use case of its Galaxy AI on smartphones. This is one example of how OEMs intend to differentiate their next smartphones, with GenAI playing a crucial role in that differentiation.
In 2023, GenAI smartphones will account for 4% of the market; by 2024, that figure is expected to more than double, according to Counterpoint. "We anticipate that GenAI smartphone shipments will surpass half a billion units and attain 40% market share by 2027."
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December 21, 2023 at 02:06PM
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Qualcomm likely to control 80% of GenAI smartphone chip market - DIGITIMES
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