According to the latest report released by Counterpoint Research, smartphones equipped with generative AI capabilities are anticipated to constitute 45% of global shipments by 2026, a notable increase from the 36% projected for 2025. Despite an expected 13.9% year-on-year decrease in global smartphone shipments, bringing the total to 1.08 billion units, the penetration rate of AI-integrated smartphones is on a steady upward trajectory, potentially surging to 52% by 2027. Escalating memory costs have surfaced as a significant barrier to the widespread adoption of AI smartphones, with wholesale prices for AI-enabled devices expected to remain above $400. The high-end market segment continues to grow, driven by its attractive profit margins. Meanwhile, the popularization of AI smartphones in the mid-to-low-end market hinges on advancements in memory supply and on-device model optimization, which are crucial for making these devices more affordable and accessible to a broader consumer base.