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Affordable AI Phones Targeting a 30% Market Share This Year

4 April 2025 路 Uncategorized 路

Source: 路 https://ccc.technews.tw/2025/04/04/affoardable-ai-smartphones-might-reash-30-marketshare-in-2025/

Affordable AI Phones Targeting a 30% Market Share This Year
With joint efforts from tech giants such as Google, Apple, and Samsung, artificial intelligence (AI) functionalities are now being integrated into mid-range smartphones. Research forecasts predict that the penetration rate of AI phones will rise to 18% in 2024 before reaching a projected 31% by 2025; experts believe this trend towards affordable AI devices could accelerate phone upgrades while promoting widespread adoption of 5G, thereby fostering an even more robust ecosystem for artificial intelligence.

The global market is witnessing the rise of generative Artificial Intelligence (AI), with various brands launching their own versions of AI phones. In 2024, it was dubbed a landmark year globally for AI smartphones; however, these devices were primarily high-end models capable of running generative applications directly on them. This trend has now extended to mid-range handsets in the current year.

Google recently unveiled its affordable Pixel 9a phone featuring an upgraded camera system and sleek design alongside Google Tensor G4 chip and Gemini AI assistant.
Apple introduced their most budget-friendly iPhone, the iPhone 16e this February with A18 processor and self-developed C1 modem chipset.
Samsung continues to update its S series flagship phones while last year's Samsung A53 model has been upgraded to One UI 6.1, making it a more affordable AI phone option as well.
Brands like OPPO and realme are also actively incorporating AI features into their mid-range models, indicating that consumers can now purchase an AI smartphone for less than NT$10,000 (approximately $325 USD), significantly lowering the entry barrier.

The Industrial Technology Research Institute's Industry Intelligence Center predicts a rise in penetration rates from 18% in 2024 to 31% by 2025. Previously, major players like Samsung and Apple had launched AI phones but these were mainly flagship or high-end models; this year鈥檚 inclusion of mid-range devices with AI capabilities is expected to boost the overall adoption rate.

Tech creator 'Yi Ge' told CNA that for smartphone manufacturers competing in the realm of artificial intelligence (AI), practicality remains key. This requires substantial investment and data support, as well as tangible services such as ChatGPT-4o's free image generation feature which gained global attention due to its "Studio Ghibli Wave." By integrating these AI functions into more affordable models, companies can quickly gather extensive usage data leading to unique yet precise AI functionalities.

He further explained that given market demand, even mid-range and entry-level chips from Qualcomm and MediaTek now come equipped with AI capabilities. This is collectively driving the trend of "affordable AI phones."

According to him, this development will lead in three directions: first, more practical features on mid-to-entry level devices could drive a wave of upgrades; secondly, it would encourage consumers to transition quickly from 4G networks to 5G ones; thirdly and most importantly, the market's understanding and demand for AI functions are expected to rise significantly, effectively enhancing "the AI ecosystem."

(Author: Jiang Mingyan; Image source: TechNews)

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