Counterpoint Research said the smartphone industry is rapidly shifting toward Agentic AI, with chipmakers and device makers racing to build smarter, context-aware AI experiences directly into smartphones.
Qualcomm And MediaTek Intensify AI Smartphone Competition
Counterpoint Research noted on Thursday that Agentic AI-capable smartphone chip shipments reached 4% penetration by the end of 2025, with adoption largely limited to premium Android devices.
Principal Analyst Soumen Mandal said Qualcomm Inc. (NASDAQ: QCOM) gained an early scale advantage through partnerships with Samsung Electronics Co. Ltd. (OTC: SSNLF) and Chinese smartphone makers.
At the same time, its AI software ecosystem and developer collaborations accelerated adoption in flagship devices.
At the same time, Mandal said MediaTek became the first chipmaker to commercialize Agentic AI capabilities through its Dimensity 9400 series, ahead of Qualcomm's Snapdragon 8 Elite Gen 5 launch.
He added that MediaTek is aggressively expanding into premium smartphones and pushing advanced AI features into broader price categories, increasing competitive pressure on Qualcomm.
Counterpoint also projected Agentic AI smartphone chip shipments to grow at a 281% compound annual growth rate between 2025 and 2027, with penetration expected to rise to 32% by 2027.
Apple, Samsung And Google Pursue Different AI Strategies
Counterpoint said Apple Inc. (NASDAQ: AAPL) continues focusing on on-device AI processing through its custom silicon, Neural Engine, unified memory architecture, and tightly integrated ecosystem.
Researchers said Apple's eventual entry into dedicated Agentic AI smartphones could significantly reshape the market.
The firm added that Samsung is strengthening its position through investments in memory-focused AI technologies and partnerships with Advanced Micro Devices, Inc. (NASDAQ: AMD) and Perplexity tied to the Galaxy S26 lineup.
Meanwhile, Counterpoint said Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG) Google is pursuing a hybrid edge-to-cloud AI strategy.
The company's shift to Taiwan Semiconductor Manufacturing Company Ltd.'s (NYSE: TSM) N3P process, adoption of Imagination Technologies GPU architecture, and use of TPU expertise from its data-center operations reflect Google's long-term AI ambitions.
Analysts Expect AI Features To Expand Beyond Premium Phones
Research Vice President Peter Richardson said one in three smartphones sold in 2027 could support Agentic AI capabilities, driven by both premium devices above $600 and mid-high-tier phones priced between $250 and $600.
Richardson added that OpenAI could also enter the smartphone market with AI-centric devices focused more on AI agents than traditional app-based experiences.
However, supply-chain scale, memory availability, pricing, and user experience will determine commercial success.
Senior Analyst Shivani Parashar said more than 80% of premium smartphones could support Agentic AI by 2027, but the larger opportunity lies in expanding these capabilities into mid-tier devices.
She said MediaTek currently holds an early advantage in that transition through its Agentic AI-ready Dimensity 8400, 8450, and 8500 chipsets.