Global shipments of smartphones with generative AI (genAI) capabilities are expected to exceed 400 million units in 2025, accounting for one in three devices sold, Counterpoint research showed.
The figures mark a significant jump from 2024, when just one in five smartphones supported genAI. According to Counterpoint, the adoption of on-device AI is being driven by advancements in chipset technology and the development of efficient large language models (LLMs).
Initially confined to premium smartphones, genAI features are set to trickle down into the mid-range segment, accelerating adoption across price tiers.
In addition, Apple and Samsung were tipped to lead the genAI smartphone space in the coming years, using their strong presence in premium markets. Both companies have invested heavily in AI integration, with the iPhone-maker’s AI-powered Apple Intelligence offering and Samsung’s Galaxy AI positioned as key selling points for devices.
Regular operating system updates with new AI-driven functionalities are expected to keep users engaged and drive further adoption of the technology.
However, the market research company noted that while vendors promote genAI as a product differentiator, consumer enthusiasm for AI-driven features remains tepid. Manufacturers now seek practical use cases with tangible benefits beyond incremental hardware upgrades.
Regional trends
The report further revealed North America, Western Europe, and China are expected to lead genAI smartphone shipments in the near term. Nearly half of all smartphones sold in North America in 2024 had genAI features, a figure projected to surge to 82 per cent by 2028.
Apple, Samsung, and Google are leading this transition by foregrounding AI-powered content creation, personalised assistants, and premium subscription services.
Yet, despite the widespread adoption of AI-enabled features in the region, consumers apparently remain reluctant to pay a premium for these services.
Meanwhile, between late 2026 and 2027, Chinese smartphone brands such as Xiaomi, OPPO, Vivo, and Honor are forecasted to drive the expansion of genAI capabilities into mid-range devices, making AI-powered smartphones more accessible. As these models gain traction, overall shipment growth is projected to rise, leading to a potential decline in Apple’s market share over the medium term.
Looking ahead, Counterpoint highlighted agentic AI innovation as a major trend in the smartphone industry for 2025, predicting that the technology will surpass traditional AI assistants by offering more autonomous, action-driven and context-aware interactions.