As Apple's iPhone 16 Launch Nears, Report Says More Than Half Of World's Smartphones Will Be AI Capable By 2028: Here Are Top 5 Use Cases

Author: Rounak Jain | May 29, 2024 08:04am

Ahead of the highly-anticipated launch of Apple Inc.'s (NASDAQ:AAPL) iPhone 16 with AI integration, market analytics firm Canalys has predicted a boom in AI-capable smartphones over the next few years.

What Happened: The report forecasts that by the end of 2024, 16% of new smartphones will be generative AI-capable, driven by rapid advancements in chipset technology and increasing consumer demand.

By 2028, the firm expects more than half of the world's smartphones to be AI-capable.

Major global players such as Apple, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, and Samsung Electronics Co Ltd. (OTC:SSNLF) along with leading Chinese smartphone companies are expected to lead the charge in integrating AI capabilities into their devices.

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Google and Samsung have already integrated a few generative AI features in their latest smartphones, Pixel 8 and Galaxy S24, respectively.

Top 5 AI Use Cases On Phones

While AI is increasingly being used as a buzzword, the technology has some important use cases for smartphone users.

Background tasks like battery and connectivity optimization.
Generative AI tasks like text-to-image generation.
Communication-related features like call answering with live text translation.
Information-oriented tasks like AI-augmented search.
Productivity-related tasks like summarizing content.

Why It Matters: The AI smartphone market has been gaining momentum since 2024, with tech giants like Microsoft Corp. (NASDAQ:MSFT) and Intel Corp. (NASDAQ:INTC) declaring 2024 as the "Year of AI PC."

The companies have been focusing on AI integration in their products, with Microsoft even adding a dedicated AI key to their devices.

Apple has been a significant player in this space, with analysts predicting an AI-driven "supercycle" for the iPhone 16. The company’s focus on AI integration has been a key factor in its projected growth, with its market capitalization expected to hit $4 trillion by the end of the year.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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