A new era of smartphone upgrades is on the horizon, thanks to the integration of generative AI technology. Qualcomm CEO Cristiano Amon predicts that the incorporation of artificial intelligence capabilities in flagship smartphones will spur a resurgence in sales, ending years of sluggish performance in the handset market.
Despite a global decline in smartphone sales in 2023, with shipments dropping 3.5% compared to the previous year, Amon remains optimistic about the future. Speaking at CES 2024 in Las Vegas, he highlighted the potential of generative AI to create compelling use cases and increase market demand for phones.
In the past few years, macroeconomic slow-down, component shortages, inventory build-up, and longer replacement cycles have all contributed to the decline in smartphone sales. However, the adoption of generative AI has the potential to reverse this trend, offering low latency, personalized experiences, and enhanced security.
Industry experts support Amon’s positive outlook, with early estimates projecting shipments of over 100 million generative AI smartphones in 2024, increasing to 1 billion units by 2027.
Major players in the smartphone market are already making moves in this direction. Samsung plans to unveil its Galaxy AI phone at its upcoming Unpacked event, while Google has incorporated the Gemini generative AI model into its Pixel 8 Pro. Additionally, Apple is reportedly developing its own large language model for integration into its devices.
Qualcomm, as the leading chipmaker for handsets, has faced challenges due to the decline in smartphone sales. However, Amon sees diversification as the path forward and has made significant investments in auto chips. The company has reported a robust pipeline of over $30 billion in design wins for its digital chassis platform and aims to achieve $9 billion in revenue by the end of the decade.
With the integration of generative AI technology, smartphones are poised for a remarkable transformation, ushering in a new era of innovation and growth in the industry.
The source of the article is from the blog anexartiti.gr