Chipmakers Pushed Agentic AI to Boost Smartphone Sales
As global shipments face a 16.7 percent decline, manufacturers have integrated agentic AI to drive device upgrades.
Updated on Sept. 24, 2026 in Consumer Electronics
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Qualcomm, MediaTek, and Apple have introduced new processing architectures and agentic AI features, including Samsung's Now Nudge tool, to combat a projected slump in hardware demand. These features enable on-device AI tasks to run locally, bypassing the need for remote servers.
Why it matters
Companies are betting that sophisticated on-device AI will provide a compelling reason for consumers to purchase expensive new hardware despite rising prices caused by global memory shortages. This shift marks a strategic pivot toward software-defined utility as a means to differentiate flagship devices.
MediaTek's Dimensity 9600 Pro utilizes a dual NPU architecture to handle complex AI workloads locally. This setup balances tasks across the CPU, GPU, and NPU to maintain lower power consumption than previous generations.
The players
Qualcomm
A semiconductor company that produces integrated circuits and mobile hardware platforms powering a majority of global smartphones.
MediaTek
A fabless semiconductor firm known for developing systems-on-chip used in mid-to-high-end mobile devices.
Apple
A technology manufacturer known for its integrated hardware and software ecosystem.
Samsung
A consumer electronics manufacturer that develops smartphones utilizing proprietary display and AI software features.
IDC
A market intelligence firm specializing in global technology, IT, and consumer electronics industry analysis.
The details
On-device AI functions by processing data directly on the phone's hardware rather than relying on remote servers. Specialized processors like the CPU (central processing unit), GPU (graphics processing unit), and NPU (neural processing unit — a processor specialized for machine learning) work in tandem to execute these instructions efficiently. Samsung's Now Nudge tool exemplifies this by using image recognition to identify screen information and trigger automated tasks locally.
Timeline
August 2026: IDC issued the market forecast for 2026 shipment volumes.
2026: The projected timeframe for a 16.7 percent decline in global smartphone shipments.
The Tech Race
Manufacturers are currently locked in a race to implement agentic AI as the primary hardware differentiator to reverse a downturn in global shipment volume. This effort directly opposes the trend of slowing upgrade cycles noted in IDC’s 2026 projections.
Consumers can expect these agentic AI features to arrive primarily on flagship handsets as manufacturers try to justify high costs amid memory-related price hikes. The functionality requires modern specialized NPUs, meaning that existing older devices will likely be unable to run these new tools.
The takeaway
The industry's shift toward agentic AI is a calculated attempt to make new hardware essential rather than optional. Readers should watch the 2026 shipment data to see if these AI capabilities effectively reduce the predicted 16.7 percent market contraction.
Further reading
For more on the latest hardware trends, visit Consumer Electronics.
Source note: This article includes information reported by TVBS.
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