Demand for GenAI smartphones rings louder: Counterpoint Research data

Shipments climb from 3% to 13% but the signal weak compared to 30% worldwide

Suddenly, artificial intelligence (AI) smartphones have caught the fancy of Indian consumers. Though adoption still lags behind global trends, as much as 13 per cent of total smartphone shipments in volume in the first half (H1) of 2025 in India were generative AI (GenAI) smartphones, compared to a mere 3 per cent in the same period last year, according to data from Counterpoint Research.

 

Globally, adoption of GenAI smartphones has been much faster. In H1 2025, their share of total smartphones sold doubled to 30 per cent, compared to only 15 per cent in the same period last year. GenAI smartphones are mobile devices that leverage large-scale, pre-trained GenAI models to create original content or perform contextually aware tasks.

 

Clearly, faster adoption of these phones in India will depend on how quickly the average selling price (ASP) comes down sharply, making them more affordable for users to upgrade. Tarun Pathak, research director at Counterpoint Research, says: “While the current ASP of AI phones is pegged at $550, we expect it will go down to $400 in the next 18 months.”

 

Pathak argues that the next generation of smartphones will prioritise individual user needs and preferences through heightened personalisation, with AI at its core.

 

Price, of course, is a key factor. According to IDC, in H1 2025 the ASP of overall smartphone shipments was $275, only half that of an AI phone.

 

While overall smartphone ASP is expected to rise as consumers upgrade, the price of AI smartphones will initially come down with scale but eventually stabilise at a certain level rather than continue to fall. That would be their sweet spot.

 

The second challenge, of course, is use cases. Many argue that there are still no compelling ones to justify paying such a premium, and consumers are looking for usability. There is also confusion about what clearly defines an AI phone as distinct from a normal smartphone, and not just a marketing gimmick.

 

However, sensing the change, most brands are pushing the pedal by launching AI smartphones. According to data from Techarc, as many as 150 AI phones, including new models as well as existing models with software upgrades, have been or are being launched during this festival season by a clutch of brands.

 

But a Techarc study shows that AI is still not a trending feature for smartphone users to upgrade. They are, however, keen to learn more about how it is relevant to their lives. True differentiation in AI phones remains a challenge, as original equipment manufacturers leverage the same technology blocks to enable AI in their smartphones, though some have started introducing proprietary AI features.

 

In terms of features, Motorola, according to Techarc, is ahead with 19 AI features, followed by Realme and Samsung with 15 features each, and Google and TECNO Mobile with 14 features. For assist features, Vivo leads with six. 

AI smartphones: India’s late train on a fast global track

• In H12025, AI smartphones accounted for 13% of smartphone shipments, up from 3% a year earlier
• India still lags behind  global AI smartphone adoption, which is at  30% in H12025
• Experts project the price of AI phones to fall to $400 in 18 months; currently, they cost twice as much as overall smartphones
• Samsung, Apple, Xiaomi, Motorola, Vivo, TECNO Mobile, Realme, Google, among others, are already in the game
• 150 AI phones — both  new and upgraded  versions — launched this  festival season