AI Smartphones to Make 54% of Total Smartphone Shipments by 2028, 3x more than This Year

The global demand for AI smartphones, especially among the younger tech-savvy consumers, continues rising despite these devices being in the premium or flagship segment of the market and costing more than the average device. With the industry heavyweights Apple and Samsung releasing their latest AI models and almost every upcoming smartphone having plans to incorporate machine learning and large language models to some extent, total shipments of these devices will grow significantly in the coming years.

According to data presented by Stocklytics.com, AI smartphones will make up 54% of total smartphone shipments by 2028, or three times more than this year.

Annual Shipments to Quadruple and Hit 912 Million

AI technology has revolutionized smartphones, making them faster, smarter, and more user-friendly. However, it has also boosted demand for new devices, helping the smartphone industry to recover after two years of plunging sales.  Although tech giants Apple, Google and Samsung are already in a race to deliver the best cutting-edge phones with artificial intelligence, the sales of these devices have only started to surge, and the market forecast for the following years is quite optimistic.

Statista and Canalys data show that AI smartphones will make up roughly 16% of total smartphone shipments in 2024, or three times more than last year. However, their market share will increase significantly in the following years. With the global demand for these devices rising, total AI smartphone shipments, as a share of global smartphone sales, will climb to 54%.

The IDC data, which forecasted the number of shipped AI smartphones, showed a similar increase. By the end of 2024, smartphone vendors will ship approximately 234 million GenAI smartphones or four times more than last year. By 2028, this figure is expected to grow by almost 290% and hit 912 million.

Most Consumers Buy AI Smartphones to Learn and Edit Photos

Although using AI technology in smartphones brings a wide range of functionalities, including optimized battery life and ensured security, AI-powered translation tools and smart typing assistants, or AI-powered health and fitness tracking, none of these are reasons people buy AI smartphones.

According to Samsung`s 2024 global AI research, conducted among 5,000 consumers across different countries, more than half of respondents used South Korean AI smartphones to search and learn more about something. A further 53% of them used Galaxy AI to edit photos and videos.

At the same time, a Canalys survey showed consumers in Mainland China were the most enthusiastic about AI smartphones, with 43% being highly or very highly interested in purchasing these devices. The United States had only 15% of AI smartphone enthusiasts. Germans were just the opposite, with over half of respondents saying they have little interest in AI-capable phones. Furthermore, most respondents, or 49%, were willing to spend up to $100 on AI smartphones, while only 12% would pay more than $1,000 for these devices.