GenAI – The Next Big Thing in Smartphones

Generative AI (GenAI) is emerging as a major trend in the tech
industry, finding its way into the latest smartphones and PCs.
However, on-device AI has been around for a few years now, and
there is some confusion regarding the definition of a smartphone
with AI and a GenAI smartphone.

Counterpoint Research defines a GenAI smartphone as a mobile
device that leverages large-scale, pre-trained generative AI
models to create original content or perform context-aware tasks.
We expect such devices to have multimodal capabilities, allowing
them to process text, image, voice and other inputs to generate a
variety of output and enable a user experience that is fluid and
seamless. We also expect the hardware specifications of such
devices to evolve as the technology advances. But at present, a
device should have hardware capabilities that are comparable to
or exceed the performance of current flagship smartphones to
effectively run GenAI models.

While GenAI technology appears promising, there are several
questions in the industry. GenAI phones will need powerful
hardware to run those large language models (LLMs), faster
processing for inferencing, and more storage. Will these upgrades
weigh on the smartphone pricing? Will GenAI phones cost more than
regular phones? Could GenAI be the factor that will drive
smartphone upgrades? We try to answer all these questions in this
podcast.

In this latest episode of ‘The Counterpoint Podcast’, host Mohit
Agrawal is joined by Tarun Pathak, Research Director at
Counterpoint Research, to talk about GenAI smartphones. We
discuss our definition of GenAI smartphones, potential impact on
pricing and upgrade cycle, role of chipmakers, OEM strategies and
our forecast. In this discussion, we also touch upon hardware
requirements, ecosystem players that are driving GenAI
experiences, regional differences and much more.



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