Global shipments of generative artificial intelligence (GenAI) smartphones are forecast to grow 363.6 percent year-on-year in 2024, reaching 234.2 million units, according to a new report from the International Data Center (IDC). This represents 19 percent of the total smartphone market in 2024.

What is a GenAI phone?

A GenAI phone is a smartphone with advanced artificial intelligence technology that allows the device to perform complex tasks directly on the mobile phone, without the need to connect to the internet. These mobile phones have a special chip that helps them perform AI tasks faster and more efficiently, such as voice recognition, text processing or creating images. Thanks to this technology, GenAI mobile phones can react smarter and faster to user requests and adjust the user experience depending on the user’s needs.

What differentiates GenAI mobile phones from regular smartphones is their ability to perform generative AI tasks locally on the device. While ordinary smartphones often need the Internet to access AI models and perform complex functions, GenAI mobile phones can perform these tasks faster, with lower power consumption and greater privacy because they do not need to send data to the cloud. These devices open the door to more advanced AI functionality, such as customized virtual assistants, improved app experiences and interactive AI tools, revolutionizing the way users use their mobile phones.

Sales trend of GenAI devices

GenAI capabilities on smartphones will drive upgrades and represent a significant opportunity for both vendors and app developers. The dramatic growth seen in 2024 will continue into 2025, with GenAI smartphone shipments projected to grow 73.1% year-on-year. Moderate growth with a double-digit percentage is expected during the rest of the forecast period. By 2028, IDC predicts 912 million GenAI smartphones will ship, resulting in a compound annual growth rate (CAGR) of 78.4% for the period 2024-2028.

“GenAI smartphones are inevitable and look to be the next big thing the industry has to offer consumers,” said Anthony Scarsella, research director, Mobile Phones at IDC. “The triple-digit growth in 2024 will be followed by four consecutive years of double-digit growth as device manufacturers look to incorporate GenAI capable features across their device offerings. The cost will remain a critical inhibitor initially as many of the capable chipsets don’t come cheap and are available primarily in the ultra-premium segment of the market. However, over time, we believe these components will enter the mid-market and more affordable models as competition grows among device manufacturers and AI applications.”

“The rapid incorporation of GenAI in smartphones is unprecedented in mobile history with market penetration expected to exceed 60% within the first three years,” said Nabila Popal, senior research director with IDC’s Worldwide Tracker Team. “However, the most significant impact of this evolution is anticipated in 2026, when mid-range devices are expected to adopt this technology, making a momentous leap towards the democratization of GenAI. While it is still too early to know all the use cases that will emerge in the coming years, one thing is for sure, GenAI will completely transform the way we interact with our smartphones.”