The global smartphone market is entering a recovery phase as hardware vendors leverage generative AI capabilities to convince consumers to upgrade maturing devices.
Hardware Architecture Shifts
System-on-Chip (SoC) designers are prioritizing Neural Processing Unit (NPU) die area over raw graphics performance. On-device processing enables low-latency inference while mitigating data privacy concerns associated with cloud-based AI.
Market Segmentation
Premium segment handsets are capturing a higher proportion of overall industry revenue, as lower-tier devices struggle to support hardware-intensive AI features, widening the technological gap across price bands.