AI’s Transformative Power: Samsung Aims to Lead Global Smartphone Market Resurgence
In a recent interview, Samsung’s mobile chief, TM Roh, expressed confidence that the integration of artificial intelligence (AI) will drive the global smartphone market back to growth. Despite losing its position as the world’s largest smartphone maker to Apple, Samsung unveiled its latest flagship devices, the Galaxy S24 product family, featuring extensive AI enhancements in collaboration with Google and Alphabet Inc. These enhancements include built-in live translation of calls and an innovative search tool allowing users to extract information related to a circled image on the phone.
Surprising the audience, Samsung also provided a sneak peek at the Galaxy Ring, a forthcoming health-tracking gadget, signaling the company’s intention to compete with Apple on multiple fronts.
Samsung’s strategy revolves around early integration of AI into the overall user experience, aiming to outpace competitors such as Apple and Xiaomi. The company anticipates double-digit sales growth with its new flagship lineup, aiming for the best sales in eight years for the Galaxy S24 models. Estimates from KB Securities suggest Samsung could secure half of the potential market for AI-enhanced phones.
Recognizing that hardware alone won’t suffice, Samsung is collaborating with Google’s Gemini AI suite, Microsoft Corp., and Qualcomm Inc.’s Snapdragon chips for on-device AI processing. Additionally, Samsung and Google plan to streamline their approach to compete with Apple’s AirDrop through a unified Android Quick Share feature.
Emphasizing the importance of user experience, TM Roh stated, “We are always open to collaboration with our partners on new areas of the mobile industry.”
Samsung’s shares rose following the Galaxy S24 showcase, highlighting the company’s efforts to attract younger users with enhanced camera features, including AI-assisted video editing.
Having spent 2023 gathering user insights, Samsung plans to extend AI features to earlier Galaxy S series models in the first half of this year. The company aims to repeat its double-digit growth success between the Galaxy S22 and S23 generations.
Samsung’s ambitions also extend to the global smartphone market, which experienced a decline in 2023. Roh anticipates a rebound in 2024, driven by the excitement AI brings to the category. With a typical upgrade cycle of three years, many consumers are due for upgrades after a sales boom in 2021.
Despite challenges, Roh is optimistic about the prospects of the global smartphone market, expecting a 5-6% expansion in shipments this year. Samsung aims to regain its position by leveraging the transformative potential of AI, ushering in a new era in the mobile industry.
Roh concluded, “The S24 marks just the beginning of a new era when AI technologies go mainstream. Hopefully, it will help revitalize the global mobile industry.”
DATA Source : Bloomberg.com