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DigiTimes
AI phones could exceed half of smartphone shipments by 2027 as costs rise
The smartphone industry is anticipated to undergo significant changes as AI-integrated devices are expected to make up more than half of the shipments by 2027. Amidst rising component costs, including memory prices, smartphone manufacturers are adjusting their strategies by increasing the price of devices and incorporating AI functionalities into a larger range of models, particularly those in the mid-range segment. This shift reflects the industry's response to economic pressures while aiming to retain consumer interest through innovative features.
MonitorConfidence: MediumMid term horizonSupply chain risk: High
Published 7 Jul 2026, 02:20 UTC1 min read
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Summary
TL;DR
- AI phones projected to exceed 50% of smartphone shipments by 2027.
- Rising prices for memory and other components increasing handset costs.
- Manufacturers responding by raising prices and enhancing AI features.
- Mid-range devices likely to integrate more AI functionalities.
- MediaTek announces price hikes due to supply constraints.
Interesting facts
- The integration of AI features in mid-range smartphones marks a significant shift in the market.
- Increasing costs could impact consumer purchasing decisions.