Global chip design giant Qualcomm sees mid-tier AI mobiles in India in 2026

Business Standard

24-04-2025

Global chip design giant Qualcomm Inc projects that artificial intelligence (AI)-capable phones in the country will be available in the mid-tier mobile phone segment within the next 12-18 months, and then in the value phone segment within another two years, as more use cases are developed for consumers. They are already on offer in the premium end of the market.
Rahul Patel, the San Francisco Bay Area-based chief general manager for connectivity, broadband, and networks, says, 'Premium phones on the Android side, which mostly use our Snapdragon chips, are already AI-capable, and those in the category below also support AI. We believe that in the next 12-18 months, AI capability will cascade down to the mid-tier phones and, in two years, to the value phones.'
Patel adds that to achieve this, Qualcomm is already innovating to bring down costs. 'That will require not only packing in AI technology but also being mindful of costs to ensure it meets the value proposition,' he adds.
Explaining the current adoption in India, Patel argues, 'AI phones today are very few in India because the use cases have not been developed. However, the market will see a trigger based on use cases and experiences that consumers will have because of AI. Our chipsets are already capable of running these AI applications (apps); it is now up to the original equipment manufacturers to bring on the apps, which are already in the works, and you will see them next year. With compelling use cases, the share of AI phones will also increase.'
On the global AI sweepstakes, Canalys, in its research, has projected that as much as 54 per cent of all mobile phones will be AI-capable, up from 16 per cent in 2024. Counterpoint Research says that one in three smartphones globally will be generative AI-capable in 2025, compared to one in four in 2024. The research agency says that already 60 per cent of the premium phones sold in the country are already GenAI capable.
Asked whether there is an opportunity for India in the semiconductor space due to the geopolitical tensions resulting from the Trump tariffs and US-China trade tensions, since the company manufactures chips in Taiwan, Patel says, 'We manufacture chips in Taiwan as well as the US and South Korea. Yes, India's potential fabrication base and outsourced semiconductor assembly and test capabilities will provide us with an opportunity too, though it will take some time. And we have had discussions on this with the government as well.'
He also made it clear that the geopolitical tensions will not impact Qualcomm in India, and the potential will only be positive, as India is a major consumer market with potential for good growth in phones, automotive, personal computers, and bringing broadband to Indian consumers with their technology. India, he says, already houses the largest number of employees for the company, which is higher than in the US, where their headquarters is located.
Patel points out that innovation is key in markets like India. For instance, while the average service cost per month for using broadband globally is $50-100, in India, it is less than $5, which would make the business look unviable. 'This is where Qualcomm is investing to create technological capability while offering the same level of consumer experience. It's not just about bringing down costs but achieving an equilibrium where everyone wins — Qualcomm, consumers, and operators,' he says.