Recent insights from the International Data Corporation (IDC) highlight that a lack of awareness and the absence of “must-have” features have contributed to the underwhelming demand for generative AI (GenAI) smartphones. Despite the potential of GenAI to enhance user experiences, many consumers remain unaware of its capabilities, leading to low adoption rates.
Key Findings
- Consumer Awareness: The IDC report indicates that many users are not fully informed about the benefits and functionalities offered by GenAI smartphones. This gap in understanding is crucial, as it affects purchasing decisions and overall market demand[2].
- Feature Expectations: Consumers are looking for compelling features that justify upgrading to a new device. Currently, many GenAI features are perceived as non-essential or not sufficiently differentiated from existing smartphone capabilities. This perception diminishes the urgency for consumers to invest in new technology[2][3].
- Market Trends: Although IDC forecasts a significant increase in GenAI smartphone shipments—projecting a growth of 364% year-over-year in 2024—this growth is contingent upon manufacturers successfully communicating the value of GenAI features to potential buyers. Without effective marketing and education, the anticipated demand may not materialize[3][4].
Implications for Manufacturers
Smartphone manufacturers need to focus on several strategies to boost interest in GenAI devices:
- Enhancing Awareness: Companies should invest in marketing campaigns that clearly articulate the unique benefits of GenAI features, helping consumers understand how these technologies can improve their daily lives.
- Developing Compelling Features: There is a need for innovation that goes beyond incremental upgrades. Features must be perceived as essential and transformative rather than just novel additions.
- User Experience Focus: Manufacturers should prioritize creating a seamless user experience that integrates GenAI capabilities into everyday tasks, making them indispensable tools for users.
In conclusion, while there is potential for growth in the GenAI smartphone market, realizing this potential hinges on addressing consumer awareness and feature desirability effectively.
Citations:
[1] https://www2.deloitte.com/us/en/insights/industry/technology/technology-media-and-telecom-predictions/2025/gen-ai-on-smartphones.html
[2] https://www.channelnews.com.au/amazon-meta-and-google-exploiting-oz-users-data-to-train-ai/
[3] https://blogs.idc.com/2024/07/24/genai-use-cases-that-transform-smartphone-user-experiences/
[4] https://leonfurze.com/2024/10/07/ai-ux-how-genai-will-shape-the-way-we-interact-with-digital-technologies/
[5] https://www.reddit.com/r/pixel_phones/comments/1erzd5b/ai_is_becoming_totally_obnoxious/
[6] https://www.imd.org/ibyimd/artificial-intelligence/why-boring-is-beautiful-with-genai/
[7] https://www.inc.com/joe-procopio/the-problem-with-genai-its-too-much-gen-being-sold-as-ai.html
[8] https://www.channelnews.com.au/consumer-response-to-genai-smartphones-is-a-stifled-yawn/
[9] https://www.fierceelectronics.com/ai/lack-killer-app-holds-back-genai-smartphones