TLDR: India is experiencing a rapid increase in the adoption of Generative AI (GenAI) smartphones, with 13% of total smartphone shipments in the first half of 2025 being GenAI-enabled devices, a substantial rise from 3% in the same period last year. This surge, however, still trails global adoption rates. Key factors influencing this trend include decreasing average selling prices and the development of more compelling use cases for AI functionalities.
India is at the forefront of a technological shift in the mobile industry, demonstrating a significant uptake in Generative AI (GenAI) smartphones. According to data from Counterpoint Research, GenAI smartphones constituted 13% of total smartphone shipments in India during the first half (H1) of 2025. This marks a substantial increase from a mere 3% recorded in the corresponding period of the previous year, highlighting a rapid consumer embrace of these advanced devices.
Globally, the adoption of GenAI smartphones has been even more pronounced, with their share of total smartphones sold doubling to 30% in H1 2025, up from 15% in H1 2024. While India’s adoption rate is accelerating, it still lags behind these global trends. GenAI smartphones are defined as mobile devices that leverage large-scale, pre-trained GenAI models to create original content or perform contextually aware tasks, offering enhanced personalization and intelligent functionalities.
Price remains a critical determinant for wider adoption in the Indian market. The current average selling price (ASP) of AI phones is approximately $550, significantly higher than the overall smartphone ASP of $275 in H1 2025. However, industry experts anticipate a downward trend, with the ASP of AI phones projected to decrease to $400 within the next 18 months. Tarun Pathak, research director at Counterpoint Research, emphasized the future direction of smartphone innovation, stating, ‘The next generation of smartphones will prioritise individual user needs and preferences through heightened personalisation, with AI at its core.’
Beyond pricing, the development of compelling use cases is another crucial factor influencing consumer demand. Many consumers are still seeking clear justifications for paying a premium for AI-enabled features, looking for tangible benefits beyond incremental hardware upgrades.
On a global scale, Counterpoint Research projected that worldwide shipments of GenAI smartphones would surpass 400 million units in 2025, accounting for one-third of the total smartphone market. This represents a considerable leap from 2024, when only one in five smartphones featured GenAI capabilities. The driving forces behind this widespread adoption include advancements in chipset technology and the continuous development of efficient large language models (LLMs).
Initially, GenAI features were exclusive to premium smartphone segments. However, they are expected to gradually integrate into mid-range devices, thereby accelerating adoption across various price tiers. Market leaders such as Apple and Samsung are anticipated to spearhead the GenAI smartphone sector, leveraging their strong presence in premium markets and significant investments in AI integration, including offerings like Apple Intelligence and Galaxy AI. Chinese brands, including Xiaomi, OPPO, Vivo, and Honor, are expected to further expand GenAI capabilities into mid-range devices between late 2026 and 2027, making AI-powered smartphones more accessible to a broader consumer base.
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Despite the push from manufacturers, consumer enthusiasm for AI-driven features is currently described as ‘tepid,’ underscoring the need for practical and impactful use cases. The increasing interest in GenAI is also contributing to a rise in smartphone costs. The global average selling price of smartphones is projected to increase by 5% in 2025, driven by the rising costs of generative AI chips, the transition to 5G, enhanced computing capabilities, and a general trend towards premiumization. This escalation in costs is primarily linked to System-on-Chip (SoC) prices, as manufacturers adopt advanced process nodes like 4nm and 3nm, impacting the pricing of GenAI-integrated chips from companies like Qualcomm and MediaTek.
