• 63% of Gen Z Aware of AI-Powered Smartphones.
• MediaTek leads brand salience with index score of 69 out of 100, followed by Qualcomm at 62 out of 100.
New Delhi, 16 May 2024: A new consumer survey by CyberMedia Research (CMR), a leading Indian technology market research firm, sheds light on a fascinating shift in consumer behaviour – a growing awareness and prioritization of smartphone chipsets. This trend coincides with the arrival of AI-powered smartphones promising enhanced performance and superior user experiences, including for content creation, consumption, and gaming, amongst others.
Commenting on the survey findings, Prabhu Ram, Head- Industry Intelligence Group (IIG), CyberMedia Research (CMR) said, “The survey underscores the growing importance of chipsets for younger demographics. Their digital fluency translates into a keen interest in technical specifications. Chipset brands that can deliver innovative solutions to meet these evolving expectations are likely to resonate with this future market segment. MediaTek’s strong brand awareness among Gen Alpha suggests they are well-positioned in this regard”.
The study findings highlight a significant shift in consumer behaviour, that an overwhelming 63% of Gen Z consumers are now aware of AI-infused smartphones powered by chipsets from MediaTek and Qualcomm.
“Consumers, particularly tech-savvy Gen Z and Gen Alpha, crave the on-device AI advancements. They recognize the value of AI-powered features that not only meet, but exceed expectations. Chipset manufacturers delivering on this promise will establish unwavering brand loyalty. In a dynamic world, consumers are willing to invest in smartphones that can keep pace,” added Prabhu.
Key Findings:
• Chipset battle heats-up: Both MediaTek and Qualcomm are locked in a tight battle. MediaTek holds a slight edge in brand salience with a score of 69 (out of 100), followed closely by Qualcomm at 62. This extends to brand awareness, with both brands showing strong presence amongst Gen Alpha (MediaTek 37%, Qualcomm 34%) and Gen Z (MediaTek 32%, Qualcomm 30%). Interestingly, Samsung follows closely behind in Gen Alpha awareness with a 21% share, while UNISOC captures 8%.
• Performance and Trust Drive Choice: The survey delves deeper, exploring factors influencing chipset brand preference. Consumers prioritizing performance and longevity are increasingly willing to invest in smartphones powered by trusted chipset brands. Both MediaTek and Qualcomm enjoy strong customer satisfaction, with MediaTek holding a slight edge (49% vs. 47%). Samsung (45%) and UNISOC (35%) are placed third and fourth.
• MediaTek Emerges as Top Contender: MediaTek emerges as a leader in this area, with the highest customer satisfaction (49%) and brand advocacy (Net Promoter Score of 63%). Users associate MediaTek with excellence in ‘Performance Excellence’ (65%) and ‘AI Prowess’ (64%).
• Qualcomm: A Pillar of Reliability: Qualcomm maintains its reputation for ‘Reliability and Stability’ (63%), with a brand image leaning towards ‘cutting-edge technology’. Notably, Qualcomm enjoys a healthy 26% current usage share amongst Gen Z. Qualcomm polled 47% in customer satisfaction, and brand advocacy (NPS of 48%).
• Willingness to Pay Premium: A whopping 40% are willing to pay premium for MediaTek, compared to 36% for Qualcomm, the long-time leader. This shift suggests a new era where chip brand recognition is translating into a key purchase driver.
• Gen Alpha – The Future Market: The tech-native Gen Alpha exhibits a keen interest in chipset details and performance. MediaTek‘s dominance in brand awareness (37%) among this demographic signifies their keen interest in chipset details and advanced features. This trend underscores the need for continuous innovation to cater to the evolving needs of tech-savvy demographics.
“The smartphone industry stands at the cusp of a transformative shift driven by Generative AI. On-device AI empowers smartphones to handle complex AI tasks directly, reducing reliance on cloud infrastructure. Future-proof smartphone chipsets are crucial to achieving this vision,” added Sugandha Srivastava, Senior Manager – Industry Consulting Group, CyberMedia Research (CMR).
Note to Editors:
The CMR primary survey covered >1500 consumers, across demographics, and based across Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad.
There is 95% confidence that the findings have a statistical precision of plus or minus 3%, accurately reflecting the sentiments of the broader population.
