Qualcomm is probably going to hold 80% of the market for GenAI smartphone chips

Qualcomm is probably going to hold 80% of the market for GenAI smartphone chips

According to a recent analysis by Counterpoint Research, MediaTek’s Dimensity 9300 chips will allow Qualcomm to catch up to over 80% of the generative AI (GenAI) smartphone chip market in the next two years.

Counterpoint predicts that the upcoming year will be crucial for GenAI smartphones because preliminary data suggests that shipments of these devices will exceed 100 million units by 2024. “By 2027, we expect GenAI smartphone shipments to reach 522 million units, growing at a CAGR of 83%.”

GenAI smartphones, according to Counterpoint, are a subset of AI smartphones that employ generative AI to produce original content as opposed to merely providing pre-programmed answers or carrying out preset tasks. These devices will run natively optimized AI models based on size and have specific hardware specifications. “Our short-term GenAI landscape sees OEM roadmaps touching on four main areas – info provisioning, image building, live translation, and personal assistant applications,” according to the study.

Due to their current product offerings and capabilities, Samsung and Qualcomm are the clear leaders as they are considered “first movers,” according to Counterpoint. As with foldables, Samsung is predicted by the firm to capture over 50% of the market in the next two years, followed by significant Chinese OEMs like Xiaomi, Vivo, Honor, and Oppo.

The use case of Samsung’s Galaxy AI for smartphones was previously highlighted. In order to set their next smartphones apart, OEMs plan to use strategies such as this one, where GenAI will be a key component.

According to Counterpoint, the share of the smartphone market that GenAI devices hold will increase from 4% in 2023 to over twice as much by 2024. “We anticipate that GenAI smartphone shipments will surpass half a billion units and attain 40% market share by 2027.”

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