1 in 4 Galaxy S24 buyers chose the phone because of its AI capabilities
Out of these buyers, 28 percent were impressed by the Galaxy S24‘s real-time translation features, 24 percent were interested in the camera capabilities, and 17 percent wanted the circle to search feature.
That said, it’s too early to predict whether AI will drive up smartphone shipments considerably.
As more smartphone manufacturers develop, embed and successfully convince customers of the benefits of generative AI, we will start to see a shift in consumer awareness and behaviour. Whether AI will drive greater sales volumes is not yet clear, but consumers motivated by AI functionality will behave differently when buying a new device. What we could start to see is manufacturers packaging exclusive AI features into subscription offers, charging consumers to access them and building a new revenue stream.” – Jack Hamlin, Worldpanel’s Global Consumer Insights Director
Apple is yet to release a phone that puts AI front and center and Kantar points out that the company still managed to sell more phones than other companies. This may indicate that consumers view AI capabilities as residual benefits and they are not the main reasons for buying a phone for most of them.
Educating consumers about AI features and the benefits they could bring can influence decision making. But the question is whether consumers would purchase their handset anyway, and AI features only offering a residual benefit? With iPhone sales at a record high in most markets, Apple’s decision not to rush into AI doesn’t appear to be affecting sales yet.” – Jack Hamlin
