While the global smartphone market continues to contract, AI-powered devices have emerged as a rare bright spot, according to latest data from the market research company Canalys.

In the first quarter of 2026, worldwide shipments of AI smartphones soared 320 percent year-on-year. In China, AI phones accounted for more than 53 percent of all smartphone shipments for the first time, overtaking non-AI devices, the research firm said.

The milestone comes against a challenging backdrop: global smartphone shipments fell 6 percent in the first quarter of 2026, ending a ten-quarter growth streak, according to Counterpoint Research. China saw a 3.3 percent decline to 69.01 million units, according to IDC data.

From Apple's AI-generated message summaries to Samsung's circle-to-search and Huawei's voice memo assistant, major brands are betting on AI to enhance how users consume, search and capture content. Analysts said AI is injecting new vitality into a maturing industry.

Chinese brand iQOO is riding the wave with its latest flagship iQOO15T, targeting younger consumers. The device debuts the Dimensity 9500 Monster Edition chip and features AI-powered e-sports capabilities, promising next-level gaming experiences. As AI becomes a key differentiator, the race to integrate smarter, more intuitive features is reshaping the smartphone battlefield, experts said.