How Apple, Google, Samsung and others will make you want to buy a smartphone again

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In 2013, smartphone shipments were up 38.4%, reaching one billion units shipped in one year, for the first time. And in 2014, these shipments were up 27.6%, and the market had exceeded 1.3 billion units shipped in one year. On the other hand, in 2023, the smartphone market was in decline by 3.2%.
Of course, there was the COVID crisis, then inflation. However, long before these crises, the smartphone market was already showing signs of weakness. Indeed, in 2018 and 2019, smartphone shipments were already declining, according to IDC, despite the arrival of 5G and folding smartphones.

AI to boost sales

Nevertheless, this year, a new element could change the game: artificial intelligence. The launch of ChatGPT showed how AI can help users in their daily lives. And now, smartphone manufacturers are racing to integrate this technology directly into their smartphones. Earlier this year, Samsung introduced Galaxy AI, a series of features based on generative AI, which it integrates into its high-end devices.

The strategy is paying off, since Galaxy AI has allowed Samsung to boost sales of its Galaxy S24 series. Recently, Apple also presented Apple Intelligence, which will be available this autumn. In addition to an improved version of Siri and many very practical AI features, Apple also offers access to ChatGPT on its iPhones. For its part, Google is integrating its Gemini model into the Google Pixel, while the Honor and Oppo brands have already announced the arrival of AI on their models.

A new argument

In recent years, despite technical improvements and the introduction of new features, smartphone manufacturers have struggled to offer enough new features to entice consumers to switch devices. But thanks to generative artificial intelligence, and all the benefits for the user, the industry could make us want to buy a new smartphone again. For example, some analysts are already predicting a new supercycle of iPhone purchases, thanks to Apple Intelligence. Indeed, Apple's new AI features are only available on the iPhone 15 Pro and iPhone 15 Pro Max. For its part, Counterpoint Research is already predicting a sharp increase in sales of smartphones that integrate artificial intelligence. In 2024, AI smartphones would represent 11% of global smartphone shipments. And in 2017, this rate would be 43%.

“Smartphones of the future will be more personalized to meet individual needs and preferences, and AI will play a central role in driving these personalized experiences. As OEMs differentiate on AI positioning, the key here will be the evolution of AI use cases. Currently, these use cases include enhanced imaging capabilities, translation features, improved app experiences, content recommendations, more personalized content creation, and much more,” Mohit Agrawal, Managing Partner at Counterpoint, said.