AI-Enabled Smartphones Expected to Account for 54% of Total Shipments by 2028
Global demand for AI-enabled smartphones continues to rise, especially among younger, tech-savvy consumers, despite their higher price tags in the premium segment of the market. With industry leaders like Apple and Samsung launching their latest AI-integrated models and nearly every upcoming smartphone incorporating machine learning and large language models to some extent, the shipment of AI smartphones is set to grow significantly in the coming years.
According to data from Stocklytics.com, AI smartphones are projected to account for 54% of total smartphone shipments by 2028, a threefold increase compared to this year.
Annual Shipments Expected to Quadruple, Reaching 912 Million
AI technology has transformed smartphones, making them faster, smarter, and more intuitive, which in turn has boosted demand and helped the industry rebound after two years of declining sales. Although tech giants such as Apple, Google, and Samsung are already competing to deliver the most advanced AI-driven smartphones, sales of these devices are only beginning to take off, with a positive outlook for the future.
Data from Statista and Canalys indicate that AI smartphones will represent approximately 16% of total smartphone shipments in 2024, triple the share from last year. This market share is expected to rise significantly in the coming years, with global demand driving AI smartphone shipments to comprise 54% of total smartphone sales by 2028.
Similarly, IDC forecasts show that by the end of 2024, around 234 million AI-powered smartphones will be shipped, a fourfold increase over last year. By 2028, this figure is predicted to rise by nearly 290%, reaching 912 million units.
Consumers Primarily Use AI Smartphones for Learning and Photo Editing
While AI integration offers numerous functionalities, such as improved battery optimization, enhanced security, AI-driven translation tools, smart typing assistants, and health tracking, these are not the primary reasons consumers purchase AI smartphones.
According to Samsung’s 2024 global AI survey, which polled 5,000 consumers across various countries, over half of respondents used AI smartphones mainly to search for and learn new information. Additionally, 53% reported using Galaxy AI features for editing photos and videos.
A separate survey by Canalys revealed that consumers in Mainland China are the most enthusiastic about AI smartphones, with 43% expressing high interest in buying these devices. In contrast, only 15% of U.S. consumers showed strong interest, while in Germany, more than half of respondents indicated little to no interest in AI-capable phones.
Moreover, 49% of surveyed consumers were willing to spend up to $100 on AI smartphones, while only 12% were prepared to pay more than $1,000 for these advanced devices.