The landscape of the smartphone market is witnessing a groundbreaking transformation, particularly with the integration of Generative AI (Gen AI) into mobile devicesA recent report from Counterpoint, released on December 26, 2023, illustrates that by the third quarter of 2024, smartphones equipped with Gen AI will represent 18.3% of total global smartphone salesThis burgeoning trend is anticipated to accelerate further as Gen AI capabilities inch towards mid-range devices by 2025, with a remarkable 59% of consumers expressing intentions to upgrade to these advanced smartphones within the upcoming year.

The introduction of Gen AI in smartphones marks 2024 as a critical juncture in the evolution of mobile technologyThe fusion of AI with handheld devices has significantly spurred consumer upgrade rates, introducing a level of unpredictability into the global market dynamicsNotably, this scenario is particularly advantageous for well-established brands like Lenovo, which have consistently innovated and adapted to market demands

Lenovo's strong performance in various global markets stands out, showcasing a remarkable sales and revenue growth that exceeds market forecastsThe brand not only solidified its position as a top-three player in North America, but it also enjoyed a substantial resurgence in the domestic Chinese marketThrough its "one body, multiple endpoints" strategy on the AI front, Lenovo’s smartphone division shows promising potential for continued growth.

The year 2024 could very well be hailed as the dawn of the Gen AI smartphone eraThe core capability of Gen AI lies in its ability to generate novel multimedia content based on existing data—this includes text, images, audio, and video—providing users with a more intelligent and personalized experienceMarket research from various institutions indicates a consensus that there will be a significant shift towards developing smartphones that inherently support Gen AI functionalities, setting a compelling industry trend.

According to Counterpoint’s findings, in the third quarter of 2024, a total of 18 brands unveiled over 80 Gen AI-enabled smartphones, predominantly high-end models

• The Dollar Index Remains Strong
• A Clear Uptrend for the US Dollar
• U.S. Sets Emission Reduction Goals
• NVIDIA and TSMC Alliance Faces Fracture
• Where Are the Investment Opportunities?

In a survey conducted by Counterpoint Research across developed nations including the US, Canada, UK, France, Germany, Poland, and Japan, it was found that 32% of respondents were somewhat familiar with Gen AI technology.

Moreover, Counterpoint's study illustrates that Gen AI functionalities are projected to expand from premium models to mid-range options starting in 2025, with over half of consumers intending to transition to Gen AI smartphones within the yearIn China, the competitive environment for AI smartphones is intensely fierceAs major manufacturers showcase their new products featuring Gen AI functionalities during the autumn and winter launch events of 2024, the competition is shifting focus from previous years of processor speed and pricing to prioritizing innovation centered around Gen AI capabilitiesThis indicates a significant industry pivot, leading many experts to designate 2024 as the pivotal year for AI smartphones.

Drawing from Gartner's hype cycle, we can surmise that Gen AI technology is currently in the inflation phase of expectations but hasn't yet peaked

As AI technology matures and penetrates deeper into applications, it is expected that Gen AI will slowly transition into a steady growth phase, ultimately reaching a plateau of productivity.

The AI smartphone market, built on AI integration, will become one of the most fiercely competitive arenas, a sector where established dynamics are poised to shiftIn this context, Gen AI represents an “X factor.” Companies that have heavily invested in this area and are willing to grasp the opportunities presented are likely to emerge as winnersLenovo's successful performance in the global market in 2024 substantiates this prediction.

The quest for “increment” through understanding “variables” is crucialObservations from past years suggest that by 2020, the Chinese smartphone market had essentially crystallized into a treacherous battleground where a few dominant players emerged, akin to the Warring States period

However, the advent of the AI smartphone era in 2024 has led to significant shifts within the marketplace, with Lenovo's overwhelming resurgence in China being one of the most remarkable changes.

In the second financial quarter of 2025 (corresponding to the third quarter of 2024), Lenovo’s smartphone business reported a 43% year-over-year growth, achieving the highest quarterly sales in its historyA breakdown of market performances indicates that the largest contribution stemmed from the Chinese market, where Lenovo's smartphone unit saw a staggering 103% increase in quarterly sales, accompanied by a 112% rise in revenue—both figures eclipsing the Chinese smartphone market's average growth rate of 6%.

Lenovo’s outstanding performance in China has had a ripple effect, catalyzing its positioning in the global landscapeData from Tech Insights has shown that Lenovo rose to seventh place in the global market rankings by the third quarter of 2024, with a year-over-year growth in shipments reaching 26%.

The resurgence of Lenovo’s smartphone segment is not isolated to China; the brand is witnessing healthy growth in various global markets

In North America, for instance, Lenovo's Moto brand has maintained a spot in the top three, trailing only behind tech giants Samsung and Apple, thereby establishing itself as the sole Chinese entity in the top five.

These accomplishments can be attributed to Lenovo Group’s comprehensive "one body, multiple endpoints" AI strategyTheir integration of AI across both laptops and Moto smartphones, particularly through the marketing of “AI Origin Edition” for new models, resonates well with tech-savvy Generation Z consumers and creates a cohesive AI product line.

Furthermore, Lenovo Group's global strategy that combines localization with a strong international presence has proven beneficialFollowing its acquisition of Fujitsu Mobile, Lenovo has begun to see results in the Japanese market, as the dual-brand approach with Moto and Fujitsu has propelled the brand into the top four in Japan.

Lenovo's remarkable growth trajectory in the global smartphone sector is underscored by its comprehensive market reach spanning China, North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific

This extensive footprint, coupled with ownership of two well-known brands—Motorola and Fujitsu—positions Lenovo uniquely among Chinese smartphone firms, showcasing its formidable cross-border acquisition capabilities and strong operational strategies in foreign markets.

In conjunction with the robust integration of Gen AI technology, Lenovo has increased its innovative efforts in mobile technology, particularly focusing on foldable smartphones in recent yearsRecently, they have managed to substantially reduce manufacturing costs and retail prices for these premium devices, achieving a 30.8% market share in the vertical foldable smartphone segment, leading globally.

The latest wave of artificial intelligence is shaping up, and the development of AI-enabled endpoints is maturing rapidlyWith the surge in investments in AI fueling robust performance across various sectors, Lenovo is benefiting from this dual catalyst—AI PCs and AI smartphones