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Apple and Samsung to Spark Smartphone Sales Surge with AI Innovations

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Apple IncΒ AAPL and other smartphone giants likeΒ Vivo,Β Xiaomi CorpΒ XIACF XIACY, andΒ Samsung Electronics Co, LtdΒ SSNLF, are primed to experience a roaring comeback in smartphone sales beginning in 2024, defying the gloomy outlook for the mobile sector.

According to analyses from Goldman Sachs and Morgan Stanley, smartphone shipments are predicted to soar, with a projected nearly 4% global increase in 2024 and a further 4.4% rise in 2025.

Don’t Miss:Β iPhone 15 Costs More in China and India Compared to US Despite Local Manufacturing and Assembly

The anticipated surge is attributed to the integration of new on-device AI capabilities, which are expected to ignite demand through advancements in photography, speech recognition, and user privacy, as reported by TechCrunch.

The early signs of the impact of AI features are already promising, with Vivo’s AI-powered X100 experiencing explosive sales and Xiaomi’s AI-integrated flagship model boasting sales six times higher than usual.

Samsung’s 2024 models are set to incorporate generative AI, providing ChatGPT-like functionalities directly on the device without relying on cloud processing.

While acknowledging the uncertainty surrounding the emergence of a β€˜killer app’ for Edge AI, Morgan Stanley hints at a potential breakthrough, drawing historical parallels from the desktop and mobile internet eras.

Microsoft Corp’sΒ MSFT CoPilot could serve as a benchmark for smartphone AI applications, according to Morgan Stanley.

Goldman Sachs, despite predicting a 5% drop in global smartphone volumes for 2023, anticipates a robust recovery in 2024 and 2025, forecasting shipments to rise to 1.186 billion in 2024 and 1.209 billion in 2025.

This reversal contradicts the prevailing belief that smartphones could encounter similar stagnation challenges as personal computers. Morgan Stanley argues that smartphones are at a lower risk of being displaced by other technologies like AR/VR, primarily due to their shorter replacement cycles, higher frequency of use, and expanding use cases, particularly with the advent of Edge AI.

Disclaimer:Β This content was partly produced with the help of AI tools and was reviewed and published by Benzinga editors.

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