635 million units in 2027. With generative AI, which can create new context with the help of prompts in natural languages like English or Hindi, smartphones will only get smarter. For instance, when Samsung Galaxy S24 launches on 17 January, Canalys expects on-device AI features like Live-Transcribe, but adds that most new AI features and solutions will be rolled out in the future using software updates.
According to research firm Counterpoint, too, this year will be pivotal for Generative AI (GenAI) smartphones with preliminary data projecting their shipments to reach over 100 million units in 2024. By 2027, Counterpoint expects GenAI smartphone shipments to reach 522 million units, growing at a compounded annual growth rate (CAGR) of 83%. Effectively, over 1 billion GenAI smartphones are likely to be shipped cumulatively between CY2024 and CY2027.
The fact is that chipset makers including Qualcomm, Mediatek, Samsung and Google have been focusing on improving neural processing unit and tensor processing unit (NPU/TPU) performance over the past few years. Both NPUs and TPUs are broadly classified as AI accelerators. TPU, on their part, are Google's custom-developed application-specific integrated circuits (ASICs) used to accelerate machine learning (ML) workloads.
Likewise, NPUs are specifically focused on handling AI/ML workloads. Smartphone vendors including Apple, Huawei, vivo, and Xiaomi, too, are implementing AI/ML algorithms locally to improve imaging quality, battery life, and typing experience. However, integrating large language model (LLM) and other GenAI models on-device necessitates a different computing platform and software capabilities.
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