Despite strong investor interest, consumers are adopting a “wait-and-see” approach to AI smartphones, Jefferies analysts reported Thursday.
Consumers are hesitant due to uncertainties about AI features’ benefits, costs, and user-friendliness on smartphones. Analysts noted that most smartphone manufacturers, except Apple, struggle to identify desired AI services and develop necessary tech solutions. The lack of an integrated hardware-software ecosystem in the Android market exacerbates this challenge.
During China’s 618 shopping festival, smartphone sales saw low single-digit declines in the second and third weeks after nearly 30% growth in the first week, driven by iPhone discounts. Overall, the three-week festival experienced mid-single-digit growth, with iPhones outperforming Android devices.
