Apple vs. Android AI’s impact on smartphone sales forecast

Generative AI is shaping the future of mobile technology, but its immediate impact on sales may differ between Apple and Android devices. Analysts predict that Android smartphones will grow by 7.1% in 2024, while iOS devices will only rise by 0. 8%. 

According to IDC’s Worldwide Quarterly Mobile Phone Tracker, smartphones with generative AI capabilities are expected to make 18% of the market share by the end of 2024. The anticipated rise in AI-powered smartphone shipments is notable, with IDC projecting a 344% increase in generative AI (GenAI) smartphones.

AI features and market recovery drive smartphone demand

Key markets like the United States and China are expected to see improved sales as a result of this trend. The two regions that have been undergoing economic volatilities are expected to gain from the availability of new-generation smartphones with enhanced AI capabilities. 

Consequently, Apple is setting the stage to release new iPhones with AI-integrated features under the brand “Apple Intelligence” early next month. This is in response to a drop in sales in recent times, especially in the Chinese market. Similarly, Google’s recently launched Pixel phones, which focus on AI integration, also point to the general trend of integrating intelligence into mobile devices.

Apple’s strategy of on-device generative AI is vital in defining its market standing. Apple’s new phone, the iPhone 16, is expected to be the ultimate example of the company’s use of artificial intelligence in its products. However, the use of AI technology is not without challenges to Apple as it requires a lot of integration. 

Consumer expectations influence AI smartphone sales

Nabila Popal, the senior research director at IDC, pointed out that the awareness of the sales potential of generative AI could be a factor. Popal further stated, “The improved forecast for 2024 cements the road to recovery for the smartphone market, driven by stronger growth for Android devices in China and emerging markets.”

Moreover, Generative AI is generating a buzz about being a solution to enhancing data privacy. Users are fascinated by the fact that on-device AI can work with their data without storing it in the cloud. This perception of improved privacy is due to the notion that AI situated at the device level will reduce the level of reliance on the cloud to store such data. Anthony Scarsella, research director at IDC, stated that the GenAI smartphones are a new concept and they are predicted to have significant presence in the premium segment.