New Delhi, Nov 10 (IANS) Smartphones are getting costlier and going forward, be ready to pay more with the rising prices of generative AI chips, transition to 5G, enhanced computing capabilities and premiumisation.
The global average selling price (ASP) of smartphones is projected to rise by 3 per cent (year-on-year) to $365 in 2024, with a further 5 per cent increase in 2025, according to Counterpoint Research’s Market Outlook report.
In 2025, increasing consumer interest in generative AI (GenAI) will mainly support the premiumisation trend as GenAI demands SoCs with significant enhancements in CPU, NPU and GPU capabilities.
Furthermore, in mature smartphone markets, which have longer replacement cycles, manufacturers are adopting advanced technologies like GenAI to boost upgrades in the premium segment, the report mentioned.
In the first half of 2024, sales of smartphones priced at $1,000 and above surged by 18 per cent.
As consumers seek devices with advanced features and capabilities, major smartphone OEMs are responding by integrating GenAI technologies into their models, marking the dawn of the AI smartphone era.
The ASP rise is closely linked to the increasing bill of materials (BoM) costs. A primary contributor to this escalation is the SoC (system-on-chip).
As manufacturers adopt more advanced process nodes, such as 4nm and 3nm, the costs associated with wafer manufacturing are expected to rise starting in 2025.
This increase will impact the pricing of select Qualcomm and MediaTek products that incorporate GenAI, leading to single-digit percentage increases, the report mentioned.
The latest SoC offerings from companies like Qualcomm and MediaTek are not only more expensive but also significantly more powerful. Enhanced AI capabilities, particularly within NPUs, allow these chips to perform complex tasks more efficiently.
While the rising prices of SoCs contribute to the overall increase in smartphone costs, memory prices are also a crucial factor.
“As we enter the AI smartphone era, the integration of GenAI features is expected to continue this upward trend,” the report mentioned.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
