AI is becoming the biggest selling point in the premium smartphone category. GenAI-capable smartphones are projected to represent 45% of shipments in 2026, up from 36% in 2025, with Apple and Samsung driving the upgrade cycle.

By 2027, that figure is expected to cross 52%, turning generative AI from a premium feature into a mainstream expectation. Samsung and Apple are positioned at the center of this transition.

Both companies are trying to convince users that AI, not another camera upgrade or faster processor, is the reason to replace an existing smartphone.

According to Counterpoint Research, global smartphone shipments are expected to fall 13.9% year over year in 2026 to 1.08 billion units, marking the lowest level on record.

Samsung moved earlier than most competitors with Galaxy AI, building a broader AI experience around features such as generative photo editing, live translation, writing assistance, and more contextual interactions.

Apple is taking a different route. With the iPhone 17 series, Apple expanded its AI capabilities across nearly its entire smartphone lineup. The upgraded Siri has Gemini capabilities at its core, handled by Apple systems.

Counterpoint Research Director Tarun Pathak noted that GenAI capability has already become common in high-end smartphones above the $400 wholesale price point, but the industry still faces a major challenge.

Consumers have already seen AI photo editing, translation tools, and productivity features. The next step is convincing users that these capabilities save time or change how they interact with their phones.

A smartphone that can summarize information, manage daily tasks, understand personal context, and take useful actions without constant input could create a stronger upgrade reason.

Counterpoint Senior Analyst Karn Chauhan highlighted that Google Gemini has become a major foundation layer for premium smartphone AI, supporting experiences across Samsung, Apple, and other global smartphone brands.

Samsung and Apple are both protecting their own advantages. Samsung combines Galaxy AI with its Android ecosystem and hardware portfolio, while Apple relies on its tight software and device integration.

The next phase of the smartphone market will not be decided by who adds the most AI features to a spec sheet. It will be decided by which company can make AI genuinely useful every day while keeping devices affordable enough.

The post Samsung and Apple drive the next smartphone upgrade cycle with AI appeared first on Sammy Fans.