Qualcomm Set to Dominate Early GenAI Smartphone Chip Market, Counterpoint Predicts

The smartphone industry is about to undergo a major shift, driven by the emergence of generative AI technology. A report by Counterpoint Research predicts that Qualcomm will be the biggest player in this market, capturing over 80% of the GenAI smartphone chip market share in the next two years. However, the report also suggests that MediaTek is likely to catch up with its recently announced Dimensity 9300 chipset. 

GenAI smartphones defined by Counterpoint are a new breed of devices beyond simply offering pre-programmed responses or performing predefined tasks. These phones are equipped with hardware and software specifically designed to run size-optimized AI models natively, enabling them to create original content, translate languages in real time, and offer more personalized experiences. 

Counterpoint estimates that GenAI smartphones will account for a mere 4% of the market in 2023, but that number is expected to more than double in 2024, reaching over 100 million units shipped. By 2027, the research firm predicts that GenAI smartphones will capture a staggering 40% market share, translating to over 522 million units shipped annually. 

Both Qualcomm and Samsung have positioned themselves as "first movers" in the GenAI space thanks to their robust product offerings and advanced capabilities. Qualcomm's Snapdragon 8 Gen 2 platform boasts a dedicated AI engine and neural processing unit (NPU) optimized for handling demanding GenAI tasks. Meanwhile, Samsung's Galaxy AI platform has showcased impressive potential in areas like image generation and natural language processing. 

The rise of GenAI smartphones brings with it both exciting possibilities and potential challenges. On the one hand, these devices have the potential to revolutionize the way we interact with our smartphones, making them more personalized and intuitive than ever before. On the other hand, concerns around privacy, security, and ethical implications of AI technology need to be carefully addressed. 

With 2024 poised to be a pivotal year for GenAI smartphones, all eyes will be on Qualcomm, MediaTek, and other key players to see who will ultimately reign supreme in this rapidly growing market.