• Counterpoint forecasts that GenAI smartphones will account for over 54% of total smartphone shipments by 2028, with an installed base exceeding 1 billion.
• A wide range of GenAI use cases will be available on both flagship and mid-range smartphones, facilitated by OS upgrades and new model launches.
• Ecosystem collaboration, fuelled by partnerships between smartphone brands, global LLM providers and SoC vendors, will accelerate the realization and adoption of GenAI in smartphones.
• Moreover, 5G penetration and growing on-device AI computing power will solidify the democratization of GenAI across a wider range of smartphones, from flagship models to lower-end devices.

The emergence of GenAI in smartphones is not a fleeting trend. GenAI smartphone shipments are projected to experience significant growth, with a notable acceleration expected from 2025 onwards. According to Counterpoint Research’s AI 360 Service forecasts, GenAI smartphones will account for over 54% of total smartphone shipments by 2028, with an installed base exceeding 1 billion.

This democratization of AI will be driven by an intimate ecosystem of collaboration and technological advancements, along with the countless resources invested by hardware brands and AI platforms, promising to put sophisticated AI capabilities into the hands of billions.

GenAI in mid-range phones via OS upgrades and new launches

One of the key drivers of this democratization is the increasing affordability of GenAI capabilities. Smartphones are the perfect carrier for experiencing AI functionalities. Mid-range models are now getting GenAI through software updates and hybrid deployments. We can expect more mid-range and even budget devices to offer GenAI-powered experiences in the future. This means users don't necessarily need to purchase a flagship device to enjoy the features and conveniences of AI.

Currently, a wide range of GenAI use cases are emerging on both flagship and mid-range smartphones. This expanding accessibility ensures that a large portion of the market can experience the benefits of AI-powered innovations. For example, the recently launched OPPO Reno13 series delivers impressive GenAI capabilities, like AI Unblur, AI Reflection Remover and AI Summary, in mass-market models. Last year, OPPO introduced GenAI features in all of its smartphone product lines and empowered approximately 50 million OPPO users to experience GenAI features on their smartphones.

Ecosystem collaboration key to acceleration

Key players in the ecosystem, including Android brands, SoC vendors, LLM developers and the expanding AI software ecosystem, are working together to accelerate the integration of GenAI into smartphones.

One of the most recent developments in the ecosystem collaboration is the newly launched Reno13 series, where OPPO and MediaTek collaborated to optimize the Dimensity 8350 for GenAI landing. The Dimensity 8350 features 8 times faster GenAI processing and a 3.3x overall AI performance boost. This joint effort delivers optimized AI experiences in imaging through seamless integration with OPPO’s HyperTone Engine.

5G an enabling factor

The increasing penetration of 5G technology will play a crucial role in democratizing AI. 5G’s high bandwidth and low latency enable seamless access to cloud-based AI resources, facilitating the adoption of hybrid GenAI mode, particularly in mid-range smartphones. By leveraging 5G’s robust and low-latency connectivity, Chinese brands are actively collaborating with Google and Meta on large language models (LLMs) for their global users. They continuously introduce new AI features that create new usage habits, such as using interactive voice assistants for searches, information gathering, and generating images and text. Counterpoint predicts global 5G smartphone shipments will exceed 1 billion units in 2026 and surpass 85% of overall smartphone shipments by 2028.

Growing on-device AI computing power

As 5G networks facilitate cloud-based AI, flagship smartphones are also witnessing a surge in on-device AI computing power, with current SoCs boasting capabilities exceeding 40 TOPS (trillions of operations per second). This local processing power allows for faster and more efficient execution of AI tasks.

For example, the latest OPPO Find X8 series is powered by MediaTek’s Dimensity 9400 equipped with the company’s 8th Generation NPU that boasts exceptional GenAI performance, offering up to 80% faster LLM prompt performance while also being up to 35% more power efficient when computing AI tasks.

Counterpoint expects that dedicated AI computing elements will become standard across all tiers of 5G SoCs, with the maximum AI computing power of flagship platforms projected to reach 70 TOPS by 2027. This continuous increase in processing power will unlock even more sophisticated AI capabilities on smartphones.

The convergence of powerful hardware, collaborative ecosystems, widespread 5G adoption, decreasing costs and hybrid mode is driving the rapid democratization of AI in smartphones.

*This blog is sponsored by OPPO