Smartphone 360 Archives - Page 2 of 6

India Smartphone Market Volume up 8% YoY, Value up 18% YoY in Q1 2024; vivo Leads in Volume, Samsung in Value

For the first time ever, vivo led the market by volume in a single quarter.
Samsung led the market by value after capturing over one-fourth of the total market value. Samsung’s average selling price (ASP) also reached its highest ever in India.
The premium segment (>INR 30,000) reached 20% volume share, its highest ever, and 51% value share of the overall Indian smartphone market.
5G smartphone shipments captured their highest-ever share of 71% in volume terms.

New Delhi, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, San Diego, Seoul – May 9, 2024

India’s smartphone shipments in Q1 2024 (January-March) grew 8% YoY in terms of volume and 18% in terms of value, according to the latest research from Counterpoint’s Monthly India Smartphone Tracker. Volume growth was primarily driven by healthy inventory levels and the low base of Q1 2023. Value growth was driven by the ongoing premiumization trend and new launches during the quarter, such as the Samsung Galaxy S24 and OnePlus 12 series. The premium segment (>INR 30,000) reached 20% volume share, its highest ever, and 51% value share of the overall Indian smartphone market in Q1 2024.

Commenting on the market value dynamics, Senior Research Analyst Shilpi Jain said, “During the quarter, India’s smartphone market reached its highest ever Q1 value. The growth was driven by the strengthening trend of premiumization, with consumers upgrading to higher-value smartphones across price tiers. According to Counterpoint’s Consumer Lens survey, more than one-third of mid-tier consumers are willing to upgrade to the premium segment. Factors driving this trend include affordable financing schemes, better value for trade-ins, and bundled schemes, along with the demand for top-tier features such as AI, gaming, and imaging enhancements.

With a one-fourth share, Samsung led the market in terms of value. Also, at ~$425, Samsung’s ASP was its highest ever, driven by its leading position in the >INR 20,000 segment. This can be attributed to a stronger mix of its newly launched Galaxy S24 series due to its features such as GenAI, and the newly revamped A series, along with the increasing popularity of Samsung’s financing schemes. Apple also had a record quarter in India in terms of value, leading the premium segment both in value and volume terms, driven by the latest iPhone 15 series, especially in offline channels.”

Source: Counterpoint Research Monthly India Smartphone Tracker

Commenting on the market dynamics, Research Analyst Shubham Singh said, “The onset of 2024 brought a promising start for OEMs, with better inventory levels allowing them to fill channels with multiple new launches. However, sales were less than expected due to a drop in retail footfalls and a section of consumers cutting down on discretionary spending.

During the quarter, vivo captured the top spot by volume for the first time ever, with a 19% share driven by its 5G leadership and CMF (Color, Material, Finish) positioning, along with strong imaging capabilities. Key OEMs focused on diversifying their channel strategies during the quarter, which led to growth in shipments in offline channels, with inventory building up by the end of the quarter.”

Source: Counterpoint Research Monthly India Smartphone Tracker

Nothing, Motorola, Xiaomi fastest-growing brands

Nothing grew the fastest at 144% YoY due to its new mid-segment model Nothing (2a), which gained significant mind share.
Motorola’s shipments grew 58% YoY in Q1 2024 driven by demand for better CMF in smartphones and its smoother stock Android experience.
Xiaomi’s shipments grew 28% YoY to secure the second spot driven by a leaner and streamlined portfolio and a proactive offline channel strategy.
Transsion brands grew 20% YoY after increasing offline focus and offering premium specs in the affordable segment.
realme witnessed an 18% YoY growth in Q1 2024 driven by its latest number series, which targets young age groups through its superior camera capabilities and premium-like design.

Other key trends

We expect India’s smartphone market to grow in single digits in 2024, driven by strong premiumization, 5G adoption and post-COVID upgrades.
In Q1 2024, India’s 5G smartphone shipments captured their highest ever share of 71%.
MediaTek led India’s smartphone chipset market with 53% share, Qualcomm leads the premium segment with 35% share.
During Q1 2024, the offline share reached 64%, marking the highest quarterly post-COVID figure.

Notes:

India smartphone OEM shipment revenue mentioned in this release do not reflect the realized revenue for some of the OEMs.
ASP has been calculated on the basis of retail market price.
Revenue (Value) is based on retail market price.

The comprehensive and in-depth ‘Q1 2024 India Smartphone Tracker’ is available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

The Market Monitor research relies on sell-in (shipments) estimates based on vendors’ IR results and vendor polling, triangulated with sell-through (sales), supply chain checks and secondary research.

You can also visit our Data Section (updated quarterly) to view the smartphone market shares for World, US, China and India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Follow Counterpoint Research

press(at)counterpointresearch.com

Generative AI Phone Industry Whitepaper

Jointly released by Counterpoint Research and MediaTek along with other partners, including 01.AI, Alibaba Cloud Tongyi Qianwen, Baichuan-AI, Huya, Kugou, OPPO, Soul, Tencent AI Lab, Tencent Hunyuan and vivo (in alphabetical order).

PDF | 33 pages
Published date: May 7, 2024

Overview
Table of Contents

The integration of generative AI technology is undoubtedly the main theme of the current and future development of the smartphone industry. It will open a new chapter in the evolution of smartphone intelligence and inject new momentum into the continued prosperity of the mobile internet ecosystem. In this context, Counterpoint and MediaTek, together with industry partners, have released the Generative AI Phone Industry Whitepaper which proposes the concept of generative AI phones and defines the necessary features of such devices.

• On-device or hybrid processing of foundational models: This enables the smartphone to perform complex generative AI tasks without relying solely on cloud-based servers.

• Multimodal capabilities: This allows the device to process text, images, voice and other forms of input to generate a variety of outputs, with use cases such as translations, image generation and video generation.

• A user experience that is fluid and seamless: This enables the device to provide natural interactions and intuitive responses to the user's inputs and requests.

• Hardware specifications that are capable of supporting the above capabilities: These include but are not limited to a processor built on the latest process node designed to undertake AI workload leveraging integrated or standalone neural network processing units (such as APU/NPU/TPU), large memory capacity with high bandwidth, stable and high-speed connectivity options, and hardware-level and software-level security solutions.

Counterpoint’s Definition of Generative AI Phone

The whitepaper also delves into the ecosystem of generative AI phones, discussing the AI strategies of various stakeholders, including chip vendors, smartphone OEMs, large AI model providers, and application developers, as well as the technology landscape of both hardware and software for generative AI phones. It also presents Counterpoint's predictions on the development of generative AI phones. Counterpoint expects the installed base of generative AI phones to exceed 1 billion by 2027 as generative AI technology achieves widespread adoption. This rapid increase is the result of powerful mobile computing platforms, a rich array of AI models of varying sizes, a complete set of supporting tools, and the active exploration and ever-increasing applications of AI by various industry stakeholders.

Generative AI Phone Installed Base Forecast (In Million Units)

• Preface
• Chapter 1: The Onset of New Generative AI Phone Era
- ◦ The History of Handset Smartization
- ◦ Counterpoint’s Definition of Generative AI Phones
- ◦ Device+Cloud Hybrid To be Mainstream in Deploying Generative AI
- ◦ Multi-modal Capacity Key to Realize Vision of AI Agents
- ◦ The Advantages of On-device Large AI Models
• Chapter Two: Generative AI Phone Ecosystem
- ◦ Current Status of LLM and Forecast
  - ◘ AI Yi Model Series
  - ◘ Tongyi Qianwen by Alibaba Cloud
  - ◘ Baichuan AI
  - ◘ Tecent Hunyuan
- ◦ Large AI Model Size Projected to Grow in Next Two Years
- ◦ App-based UI and AI Agent UI Coexist for Years
- ◦ Generative AI Strategies of Chip Vendors
- ◦ Generative AI Strategies of Smartphone OEMs
  - ◘ OPPO’s Generative AI Strategy
  - ◘ vivo’s Generative AI Strategy
- ◦ Generative AI Strategies of Developers
  - ◘ Huya
  - ◘ Kugou
  - ◘ Soul
  - ◘ Tencent AI Lab
• Chapter Three: Hardware and Software Technology Landscape of Generative AI Phones
- ◦ Hardware Requirements for Deploying Large AI Models
- ◦ Demand for Software Ecosystem
- ◦ Current Smartphone SoC Platforms Support AI on Device
• Chapter Four: Generative AI Phone Forecast

KEY HIGHLIGHTS

Infographic: Mobile Market Monitor
(Q1 and Q2 2023)
Global Smartphone Shipments Market Data
(Q3 2021 – Q2 2023)
China Smartphone Shipments Market Data
(Q1 2022 – Q2 2023)
US Smartphone Shipments Market Data
(Q1 2022 – Q2 2023)
India Smartphone Shipments Market Data
(Q1 2022 – Q2 2023)

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iPhone 15 Pro Max Best-selling Smartphone in Q1 2024

Apple and Samsung dominated the list of top 10 best-selling smartphones in Q1 2024, a period which grew 6% YoY and one in which Samsung dethroned Apple to become the best selling smartphone OEM worldwide.
This was the first quarter in which the top 10 smartphones were all 5G capable.
This was also Apple’s first non-seasonal quarter when the iPhone Pro Max took the top spot.
The Pro line-up captured half of Apple’s total sales in Q1 2024, a significant increase from 24% in Q1 2020.

Seoul, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi – May 6, 2024

Apple and Samsung dominated the top-10 best-selling smartphones list for Q1 2024, each capturing five positions and leaving no spot for other brands, according to Counterpoint Research’s Global Monthly Handset Model Sales Tracker. This was the first quarter in which the top 10 smartphones were all 5G capable. Besides, the trend towards premiumization was evident, with 7 of the top 10 smartphones being premium (wholesale price at $600 and above).

Apple’s iPhone 15 Pro Max was the best-selling smartphone of Q1 2024. Notably, the Pro Max variant achieved the top position for the first time in Apple’s non-seasonal quarter, reflecting an increasing trend of consumer preference for high-end smartphones. All four iPhone 15 variants and the iPhone 14 were among the top 10 bestsellers. Further, the iPhone 15 line-up secured the top three spots.

The growing popularity of the Apple Pro line-up was evident, as it captured half of Apple’s total sales in Q1 2024, a significant increase from 24% in Q1 2020. The Pro iPhones have become the major revenue drivers for Apple, contributing over 60% of its sales value in Q1 2024. The Pro line-up offers substantial upgrades and significant enhancements over the base models. This strategic move has proven successful, as consumers are willing to pay for premium features. The Pro line-up’s features include an innovative dynamic island interface, more advanced chipsets, ultra-smooth displays, titanium chassis and a telephoto camera. The iPhone 15 Pro Max performed well despite its first price increase since the launch of the Pro series in 2019, indicating a strong consumer desire for the extra features the Pro line offers.

Samsung’s Galaxy S24 series secured two spots in the top 10 for Q1 2024, with its Ultra variant ranking fifth and the base variant coming in ninth. The strong performance of the S24 series can be attributed to Samsung’s early refresh of the series, and its efforts in generative AI (GenAI) technology. The S24 series was the first to reach the market with GenAI features and capabilities, allowing users to create unique content and experience a new level of interaction with their smartphones.

Consumers are holding onto their smartphones for longer periods because upgrades are offering limited differentiation in features. This leads consumers to opt for high-end smartphones to ensure their devices remain technologically relevant for a longer duration. Going forward, we expect the top 10 best-selling smartphones to capture a larger share of total smartphone sales as OEMs are focusing on leaner portfolios with premium features, including GenAI.

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Apple’s Services Revenue Grows to Reach Highest Ever Share as Product Revenues Decline

Apple’s Q1 2024 (fiscal Q2 2024) revenues declined 4% YoY. While the revenues from products declined 10% YoY, revenue from services grew impressive 14% YoY reaching the highest ever share (26%) of Apple’s total revenue. This was also the first time that services captured over one fourth of Apple’s total revenue in the first quarter.

Commenting on the results, Varun Mishra, Senior Analyst at Counterpoint Noted, “With iPhones facing competition in China, record low upgrade rates in the US, a difficult compare from last year due to lock down effects, and segments like iPads and AirPods due for refresh, the overall product revenues declined, as expected. However, there are some upsides as well. Services revenues continues to show healthy growth and Apple’s reach in emerging markets continues to rise, which could be a long-term growth opportunity for the entire Apple ecosystem. Gross margins also increased to reach the highest levels in over a decade. This was driven by higher contribution of services as well as a better product mix for iPhones with 15 Pro series performing better than its predecessors”.

Apple Revenues by Product Categories

Source: Counterpoint Research Apple 360

Results Analysis:

iPhone: Revenues down 10% YoY. According to Counterpoint Research Market Monitor, shipments were down 13% YoY with Global smartphone shipment market share reducing from 21% in Q1 2023 to 17% in Q1 2024. The quarter was also a difficult compare because of 14 Pro’s supply shifting to Q1 2023 because of COVID lockdowns in Q4 2022 affecting manufacturing facilities in China.
Mac revenues grew 4% YoY. The resilience was supported by M3 base models and also a recovery of the overall PC industry.
iPad revenues declined 17% YoY. The segment is due for refresh with no new models launching in 2023. We will see new iPads launching in Q2 2024, which will drive some growth in the coming quarters.
Wearables Home and Accessories revenues declined 4% YoY even though Vision Pro sales were likely included in the segment, indicating a steeper decline in other products in the division.
Services: Continues to be a bright spot for Apple with 14% revenue growth YoY. It’s also an important segment for bottom line growth considering high services margins. Paying subscribers grew by double digits, reaching an all-time high. We also saw Google and Amazon’s subscription businesses deliver impressive numbers, suggesting customers are rewarding product bundles with high value. According to Counterpoint Research’s Apple 360, Services is likely to capture one fourth of Apple revenues in 2025.

Outlook:

Apple does face a few headwinds in China. We will likely see Apple being more aggressive in the China market, especially during the 618 festival in June, which will help drive some sales. At the same time, Apple will continue to increase its footprint in emerging markets. Investments around financing solutions, expansion of trade-in programs etc., will also support growth especially in emerging markets. Revenues for iPads and AirPods are also likely to grow in the coming quarters owing to product refreshes. Services segment is also expected to continue to grow in double digits in the coming quarters.

Another aspect is the increasing popularity of Generative AI in smartphones, and Apple’s absence thus far. Commenting on the Generative AI, Tarun Pathak, Director at Counterpoint Research noted, “Apple has been late to GenAI as compared to its competition. However, this has not been a new trend with Apple. It has a history of bringing new features later to the market. Also, we have not seen iOS users jumping ship due to AI features. The launch of GenAI capabilities in the Apple ecosystem will have a large value add due to its tightly knit nature. It will be a welcome move by over 2-billion active device users. We are already seeing Apple is likely working on external partnerships to bring GenAI to its devices. We think Apple’s GenAI will help drive iPhone upgrades.”

Global Smartphone Market Grows 6% YoY in Q1 2024; Revenue Reaches Highest Level in a First Quarter

The global smartphone market grew 6% YoY to reach 296.9 million unit shipments in Q1 2024.
Samsung dethroned Apple to become the top smartphone player globally, accounting for 20% shipment share.
Apple’s shipments declined 13% YoY, however, the brand’s ASP grew to a record first quarter high driven by improved performance of the Pro models.
Among the top five OEMs, Xiaomi grew the fastest, registering 34% YoY shipment growth.
Global smartphone revenues also grew 7% YoY and reached highest-ever for a first quarter.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – May 3, 2024

Global smartphone shipments increased 6% YoY in the first quarter of 2024, according to the latest research from Counterpoint’s Market Monitor service. The growth is mostly attributed to the strong performance in key regions such as Europe, Middle East and Africa (MEA) and Caribbean and Latin America (CALA).

Commenting on overall market dynamics, Senior Analyst Prachir Singh said, “Smartphone shipments grew during the first quarter as emerging markets continued their strong momentum, while Europe, especially Central and Eastern Europe, grew the most compared to a difficult Q1 2023. Consumer demand in these markets has been growing gradually and the inventory levels have improved. MEA was the fastest growing region due to the strong shipments of TECNO, Xiaomi and HONOR. China also grew YoY owing to strong Lunar New Year sales and Huawei’s comeback. The India market also saw growth thanks to exiting 2023 with healthy inventory levels. The mature markets of North America and Japan declined relative to the same period in 2023.”

Global smartphone revenues grew by 7% YoY in Q1 2024 and reached the highest-ever in a first calendar quarter. The >$800 price segment was the fastest growing, registering double-digit growth and accounting for 18% of smartphone shipments in Q1 2024, up by 2pp compared to Q1 2023. Apple led the smartphone market revenues with a 43% share, although its revenues declined by 11% YoY. Samsung’s revenues grew 2% YoY, propelled by its increasing ASP while shipments remained flat. Among the top five OEMs, Xiaomi’s revenue growth was the fastest due to strong performance in its key markets. Revenues for the market beyond the top five OEMs also grew significantly, driven by increasing revenues from Huawei, HONOR and Transsion brands.

Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “Tough competition in China, record low upgrades in the US and a difficult compare from last year due to iPhone 14 Pro’s supply shifting to Q1 2023 all weighed on iPhone performance. However, there were upsides as well. An improved product mix with 15 Pro’s performing better than its predecessors, and an increasing footprint in emerging markets, helped Apple in arresting some of the declines. Emerging markets especially provide long term growth opportunities. We also expect the inclusion of GenAI later this year to contribute to iPhone upgrades.”

Samsung re-captured the top spot and led global smartphone shipments during the quarter, driven by the early refresh of the Galaxy-A-series and strong performance of the Galaxy S24 series. Samsung reached its highest-ever ASP during the quarter as well. Among the biggest smartphone brands from China, Xiaomi and vivo registered growth. While Xiaomi registered growth in almost all its key markets, vivo posted strong performance in emerging markets of Asia Pacific including India. Huawei, HONOR and Transsion were the other key brands that gained during the quarter. Huawei made huge gains in China and won share from the leading brands. HONOR gained in CALA and MEA, in addition to having a strong share in China. The Transsion brands, TECNO, itel and Infinix, performed strongly in APAC, Eastern Europe, India and the MEA. OPPO* experienced a shipment decline due to stiff competition in key markets like China. The brand also prioritized value over shipments, with a shift to pushing higher ASP devices in emerging markets.

Commenting on the near-term outlook, Research Director Tarun Pathak said, “Growth is expected to be slow but steady in the near term. However, revenues are expected to grow faster as the ongoing premiumization trend is likely to persist, especially with the rise of newer form factors and capabilities such as foldables and GenAI. More than 10 OEMs have launched over 30 GenAI-capable smartphones so far. We estimate that GenAI’s share of overall smartphone shipments will reach 11% by 2024.”

*OPPO includes OnePlus since Q3 2021

Note: Pricing analysis is based on wholesale prices; numbers here are preliminary and subject to change.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

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Counterpoint Conversations: Motorola’s Partnership with Pantone, Leveraging AI for Meaningful Smartphone Experiences

Motorola, with its newly launched smartphones, is taking a different approach in a world obsessed with megapixels and hardware specifications. The brand is focusing on design and user experience with its new launches. At the Motorola Edge 50 Pro launch event in India, Tarun Pathak, Research Director at Counterpoint, sat down with Ruben Castano, Head of Design and Experience at Motorola Mobility, to talk about the brand’s strategic shift towards its lifestyle image, collaboration with Pantone and much more.

The Interview

Key takeaways from the discussion:

Lifestyle branding, new design language:

• Motorola is transforming into a lifestyle brand with a new design language that prioritizes ergonomics.
• Castano emphasized ageless and genderless aesthetics.
• Castano also underscored the importance of color, material, and finish (CMF) as a decision factor for consumers.
• The Motorola Edge 50 Pro features a vegan leather back, offering consumers a better grip and a way to express themselves with their devices.
• The new pearl finish was developed in partnership with high-end fashion brand Mazzucchelli.

Strategic partnership with Pantone:

• Motorola has collaborated with Pantone, a world leader in color expertise.
• This partnership gives Motorola access to color trend forecasting about 6-18 months in advance.
• Pantone’s expertise is also being used for display calibration and ensuring color accuracy from capture to display.
• Motorola focuses on both global and regional customization based on research in specific markets.

AI integration:

• Moto AI focuses on AI that is meaningful for consumers by offering enhanced experience.
• AI in camera to improve photography and videography, Style Sync feature to create personalized wallpapers using AI, and background optimizations to elevate performance, battery, display, and more.

Focus on user experience and connected ecosystem:

• Motorola is moving beyond tech specs in marketing and focusing on user experience.
• Motorola is also leveraging Lenovo’s security solutions for enhanced phone protection.
• Smart Connect, a cross-platform connectivity solution to connect Motorola smartphones seamlessly and wirelessly with Windows PCs and tablets.
• Seamlessly drag and drop to transfer content like photos and videos, or copy text across devices, into presentations, and more.

Analyst takeaways:

• Motorola has been doing well lately, one of the key reasons is that the brand is riding on the premiumization trend driven by its Edge and Razr portfolio. Motorola’s premium series (>$600 wholesale) sales grew 33% YoY globally in Q1 2024.
• Motorola is aiming to strive for meaningful device experiences by integrating AI across its ecosystem products and taking a beyond-device approach, shifting the conversation beyond specifications.
• Motorola is taking up deeper and more strategic industry partnerships instead of a wide range of partnerships. One such example is its partnership with Pantone which helped it to differentiate its devices from design, display, and camera perspectives.
• According to Counterpoint, product design is one aspect where Motorola is doing better than some of its competitors.

Survey: realme Ranks Among Top Smartphone Brands for Product Quality in Bangladesh

77% of respondents prioritize product quality when buying smartphones.
Samsung, realme and vivo are top-rated for smartphone product quality.
54% of respondents rated realme as the No. 1 brand for smartphone build quality.
realme is also the No. 1 smartphone brand in product quality in the sub-BDT 20,000 (around $180) price band among users in the 16-20 age group.

New Delhi, Beijing, Boston, Buenos Aires, Fort Collins, Hong Kong, London, Seoul, Taipei, Tokyo – April 29, 2024

As many as 77% of smartphone consumers in Bangladesh consider product quality a very important parameter when purchasing smartphones, according to Counterpoint Research’s recent consumer survey in the country. The survey further reveals that Samsung, realme and vivo are the top brands in Bangladesh when it comes to smartphone product quality.

According to Counterpoint Research’s quarterly smartphone shipment tracker for Q1 2024, 80% of Bangladesh’s smartphone market belongs to the sub-BDT 20,000 (around $180) price band and has an average selling price (ASP) of BDT 20,700. In the sub-BDT 20,000 price band, the consumer survey reveals, realme is the No. 1 brand for product quality in the 16-20 age group. Further, realme tops the overall market in terms of build quality, a sub-parameter of product quality, with 54% of the survey respondents preferring the brand. When asked what brand would they recommend to others for product quality, 83% of the respondents expressed a strong inclination for realme.

Source: realme Bangladesh Smartphone Consumer Survey, 2024
Note: Numbers may not add up to 100% due to rounding.

Commenting on realme’s positioning in Bangladesh’s smartphone market, Senior Analyst Arushi Chawla said, “As smartphones have become an integral part of daily life, their quality is increasingly gaining importance. Besides, product quality is also important for securing a favorable resale value. Factors like camera quality, battery life, processor, build quality and display are key considerations for smartphone buyers in Bangladesh when evaluating the product’s quality. Among various brands in Bangladesh, realme is particularly popular among young users in the affordable price range. This is because realme offers a well-designed and tailor-made portfolio for the Bangladeshi market. In addition, its innovative software and trusted build quality make it a top choice for smartphone buyers.”

Disclaimer

This survey, commissioned by realme Bangladesh, aimed to learn what people think about product quality when buying smartphones. Counterpoint Research conducted the survey in Bangladesh, reaching over 1,000 respondents with questions in Bengali and English. Both online and offline methods were used to gather insights from smartphone users aged 18 and above. We anticipate the results to be accurate within +/- 4%.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Follow Counterpoint Research

press(at)counterpointresearch.com

Five Takeaways from Google’s Fourth Brick-and-Mortar Store in US

A new Google Store is now open on Newbury Street in Boston, Massachusetts. This marks the fourth experience store that Alphabet has opened in the US.
Google is aiming to boost Pixel’s mind share and to showcase the latest Pixel features with these brick-and-mortar stores.
Stores focus on leaving consumers with new Android experiences and knowledge rather than trying to convert them over to a Pixel device.

A new Google Store is now open on Newbury Street in Boston, Massachusetts. This marks the fourth experience store that Alphabet has opened in the US, with the first one opening in Chelsea Market, Manhattan, in 2021. Here are five takeaways from visiting the new store and speaking with several store representatives:

Boosting Pixel presence: Google Pixel’s presence in the US smartphone market has grown over the years, but the brand still in third place after Apple and Samsung in terms of premium smartphone sales. Google has done a lot in terms of marketing sponsorships over the years, from big WNBA and NBA partnerships to celebrating music and 50 years of hip-hop and supporting small and POC-owned businesses. Opening another experience store will help Google take Pixel to many of those who are not fully aware of Google’s offerings.

Personalized shopping returns: After the COVID-19 pandemic, life for consumers has been very “digital first” when it comes to shopping. But Google and others like Verizon, which is opening hundreds of new ‘Total by Verizon’ locations across the country, are betting on a better in-person customer experience.
Showcasing Pixel’s capabilities: All the reps at the new Google Store came equipped with their own work Pixel devices to showcase Gemini’s large language model (LLM) LaMDA on the spot, or highlight Pixel’s prowess in photography and GenAI tools like the Magic Eraser. Customers should leave the store with at least a seed planted of the software capabilities of the latest Pixel hardware line-up. There are many features that Pixel has to offer but it is hard sometimes for consumers to fully understand everything these devices are capable of.

iOS conversion not a focus and that’s OK: When asked what a rep would do if an iOS user came to the store, the response was to show them interesting features of Pixel devices that iPhones don’t have, such as Gemini or the Pixel 8 Pro’s built-in VPN. However, it is understandable that an iOS user with multiple Apple devices, such as iPhone, AirPods, Watch and MacBook, won’t easily be converted over because the whole ecosystem of the consumer is iOS based and it would take a lot of money to switch over everything.
Events and experiences needed: Granted, this is a brand-new store, but hopefully there will be something planned for the future, like the Google Visitor Experiences that are available in the other locations. Flagship stores are a wonderful way to introduce new people, especially young and old (which are vital customer segments), to new technology and features.

Overall, this is a positive development for Google, especially if it is able to keep the footfalls high by organizing interesting events and experiences. Educating consumers on the latest Pixel hardware and software developments as well as the overall Pixel ecosystem of devices will be the key to Google’s longevity in the US market, especially the crowded and heavily consolidated US smartphone market.

GenAI-capable Smartphone Shipments to Grow Over 4X by 2027

GenAI smartphone share of overall smartphone shipments will reach 11% by 2024 and 43% by 2027
These estimates are higher than Counterpoint’s earlier forecast in December 2023 with the anticipated entry of Apple into the segment later this year.
Samsung, an early mover in the space, will lead GenAI smartphone OEM rankings for 2024, while Apple will likely lead in 2025.
Qualcomm will lead the AI SoC space in 2024, capturing almost half of all GenAI smartphone shipments, followed by MediaTek with a 13% share.
Two key price tiers will emerge – ≥$600 and $400-$599, accounting for 9 out of every 10 GenAI smartphones sold in 2024.

Seoul, Beijing, Boston, Fort Collins, Hong Kong, London, New Delhi, Taipei, Tokyo – April 15, 2023

GenAI smartphone share of overall smartphone shipments will reach 11% by 2024 and 43% by 2027 to pass 550 million units in 2027 with 4X growth, according to an upcoming report, ‘GenAI Smartphone Shipments and Insights’, from Counterpoint Research’s Smartphone 360 Service. We expect the GenAI smartphone installed base to cross 1 billion by 2027. Against the backdrop of Apple’s anticipated entry into the segment later this year, these estimates are higher than Counterpoint’s earlier forecast of December 2023.

Counterpoint Research defines the GenAI smartphone as a mobile device that leverages large-scale, pre-trained generative AI models to create original content or perform contextually-aware tasks. We expect such devices to have multimodal capabilities, allowing them to process text, image, voice and other inputs to generate a variety of output and enable a user experience that is fluid and seamless. We expect the hardware specifications of such devices will likely evolve as the technology advances. But at present, a device should have hardware capabilities that are comparable to or exceed the performance of current flagship smartphones to effectively run generative AI models.

Research Director Tarun Pathak said, “More than 10 OEMs have launched over 30 GenAI-capable smartphones so far. AI in smartphones has been a key talking point since the start of this year, especially after the successful debut of the Galaxy S24 series, where Samsung has gained good mind share in marketing early AI use cases. We expect Samsung to lead GenAI smartphone OEM rankings in 2024. This is the second trend in the past couple of years where Samsung enjoyed an early-mover advantage; the first one being success of its foldables. The AI advantage will provide Samsung momentum in the mid-to-premium smartphone segment as GenAI features get recognized more broadly in coming years.”

Pathak added, “Apart from Samsung, Apple’s anticipated entry in the space will further help the segment’s growth. Once Apple enters, we expect AI to immediately become a must-have feature in all mid-to-premium smartphone launches starting 2025. However, the real differentiation will lie in the use cases as consumers are still evaluating potential impact of AI in their future devices.”

Sources: Counterpoint Research Smartphone 360 Service, GenAI Smartphone Shipments and Insights Report

Associate Director Mohit Agrawal said, “Smartphones of the future will be more personalized to cater to individual needs and preferences, and AI will play a central role in driving these personalized experiences. As OEMs differentiate themselves on AI positioning, the key here will be the evolution of AI use cases. Currently, these use cases include enhanced imaging capabilities, translation features, improved app experiences, content recommendations, creating more personalized content, and more. These use cases will evolve as the large language models (LLMs) will continue to grow in both size and efficiency. Counterpoint believes that the integration of edge (mobile devices) and cloud will be the mainstream model for generative AI in smartphones, and OEMs with an equally strong play in software capabilities, along with strategic industry partnerships, are likely to stay ahead of the competition.”

Going forward, we expect GenAI smartphones to hit an inflection point in 2025 as the devices permeate the broader price segments, especially the $400-$599 price tier. The ≥$600 and $400-$599 price bands will account for 9 out of every 10 GenAI smartphones sold in 2024. Leading chipset companies such as MediaTek and Qualcomm have already taken the lead in embracing generative AI smartphones. They have launched several mobile computing platforms that support multimodal large AI models on devices. We expect Qualcomm to lead in the AI SoC space in 2024, capturing almost half of all GenAI smartphone shipments, followed by MediaTek with a 13% share.

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