Ahead of the highly-anticipated launch of Apple Inc.'s AAPL iPhone 16 with AI integration, market analytics firm Canalys has predicted a boom in AI-capable smartphones over the next few years.
What Happened: The report forecasts that by the end of 2024, 16% of new smartphones will be generative AI-capable, driven by rapid advancements in chipset technology and increasing consumer demand.
By 2028, the firm expects more than half of the world's smartphones to be AI-capable.
Major global players such as Apple, Alphabet Inc.'s GOOG GOOGL Google, and Samsung Electronics Co Ltd. SSNLF along with leading Chinese smartphone companies are expected to lead the charge in integrating AI capabilities into their devices.
See Also: Apple Not Satisfied With iPhone 16 Pro Max Screens Four Months Ahead Of Launch: Report
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Google and Samsung have already integrated a few generative AI features in their latest smartphones, Pixel 8 and Galaxy S24, respectively.
Top 5 AI Use Cases On Phones
While AI is increasingly being used as a buzzword, the technology has some important use cases for smartphone users.
- Background tasks like battery and connectivity optimization.
- Generative AI tasks like text-to-image generation.
- Communication-related features like call answering with live text translation.
- Information-oriented tasks like AI-augmented search.
- Productivity-related tasks like summarizing content.
Why It Matters: The AI smartphone market has been gaining momentum since 2024, with tech giants like Microsoft Corp. MSFT and Intel Corp. INTC declaring 2024 as the "Year of AI PC."
The companies have been focusing on AI integration in their products, with Microsoft even adding a dedicated AI key to their devices.
Apple has been a significant player in this space, with analysts predicting an AI-driven "supercycle" for the iPhone 16. The company’s focus on AI integration has been a key factor in its projected growth, with its market capitalization expected to hit $4 trillion by the end of the year.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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