Samsung is developing its suite of artificial intelligence features known as Galaxy AI specifically for the Chinese market, the company’s mobile chief told CNBC. This move comes as Samsung aims to regain market share that has been significantly reduced by local competitors.
The South Korean tech giant introduced Galaxy AI this year with its S24 smartphone series. This development is part of a broader effort by device makers to encourage consumers to upgrade to premium handsets. On Wednesday, Samsung launched two new foldable smartphones featuring new AI capabilities, showcasing its commitment to advancing its technology offerings.
China, the largest smartphone market globally, has posed significant challenges for Samsung in recent years. The company’s market share for smartphones in China is under 1%, overshadowed by local brands like Huawei. Despite various efforts to revamp its strategy in China, success has been elusive for Samsung.
Now, Samsung is placing its hopes on artificial intelligence to provide the features needed to attract Chinese users. TM Roh, head of Samsung’s mobile business, emphasized the importance of this development during an interview with CNBC. “We are especially developing and we are going to especially develop our Galaxy AI capabilities for that market,” Roh said in Korean via a translator.
Roh highlighted that the development of Galaxy AI for China would involve partnerships with local technology and internet companies. This collaboration is essential due to China’s strict regulations on AI and the controlled internet landscape. For instance, this year, Baidu integrated its Ernie chatbot into Samsung’s Galaxy S24 smartphones, marking a significant partnership between the two firms.
The complexity of launching AI features in China is heightened by stringent regulations and Beijing’s control over the internet. Foreign firms, including Samsung, must navigate these regulations and collaborate with local companies to succeed.
Apple, another major player in the global smartphone market, faces similar challenges. Despite announcing its Apple Intelligence AI suite this year, Apple has not provided a timeline for its launch in China, likely due to the same regulatory hurdles that Samsung faces.
Francisco Jeronimo, vice president for devices research for Europe, the Middle East, and Africa at IDC, shared his insights with CNBC. He expressed skepticism about the impact of AI features on Samsung’s fortunes in China, citing low brand awareness and strong competition from local players. “We all know that China is a leading market and country in AI. What can Samsung bring to the market that is so unique for Chinese consumers to switch from their Huawei, Xiaomi, and Honor smartphones to a Samsung?” Jeronimo questioned.
Roh acknowledged the intense competition in China’s smartphone market, describing it as “more heated than anywhere else.” He outlined Samsung’s strategy, which focuses on introducing premium devices and expanding distribution and retail sales channels.
“Currently, although piecemeal, we are making progress step by step. We are putting together our efforts to create products and features that will be wanted and that can satisfy the consumers out there,” Roh said.
Samsung’s efforts to regain market share in China include:
- Developing AI features tailored for the Chinese market
- Partnering with local tech and internet companies
- Introducing premium devices to the market
- Expanding distribution and retail sales channels
Samsung’s Market Share in China
| Year | Market Share (%) | Key Competitors |
|---|---|---|
| 2020 | 1.1 | Huawei, Xiaomi, Honor |
| 2021 | 0.9 | Huawei, Xiaomi, Oppo |
| 2022 | 0.7 | Huawei, Vivo, Realme |
| 2023 | 0.5 | Huawei, Xiaomi, Honor |
Samsung’s approach reflects a commitment to innovation and adaptation in a highly competitive market. The company’s strategy of focusing on AI and premium devices aims to attract Chinese consumers and regain a foothold in the world’s largest smartphone market.
Featured Image courtesy of The National