- Samsung is developing Galaxy AI features specifically for the Chinese market to regain market share.
- TM Roh, Samsung’s mobile chief, highlighted the strategic importance of AI in enhancing smartphone capabilities.
- The initiative follows the launch of Galaxy S24 series integrated with AI to attract premium handset upgrades.
- Samsung faces fierce competition in China’s smartphone market, dominated by local players like Huawei.
- Collaboration with Baidu for integrating AI features reflects Samsung’s localized strategy in China.
- Francisco Jeronimo from IDC points out challenges in building brand awareness against established local brands.
- Despite hurdles, Samsung remains optimistic about incremental progress through premium device introductions and expanded distribution channels.
Main AI News:
Samsung is focusing on developing its suite of artificial intelligence features, Galaxy AI, specifically tailored for the Chinese market as part of its strategy to reclaim lost market share from local competitors. In an exclusive interview with CNBC, TM Roh, Samsung’s mobile chief, emphasized the company’s commitment to enhancing its smartphone capabilities with advanced AI technologies. This initiative comes on the heels of Samsung’s recent rollout of the Galaxy S24 series, which integrates AI features aimed at enticing consumers to upgrade to premium handsets.
Acknowledging the challenging landscape in China, where Samsung’s smartphone market share remains below 1%, Roh highlighted AI as a pivotal tool in rejuvenating the brand’s appeal among Chinese consumers. The launch of two new foldable smartphones equipped with innovative AI functionalities underscores Samsung’s aggressive approach to bolstering its technological prowess.
However, penetrating China’s smartphone market, the world’s largest, has proven daunting for Samsung in recent years, with local giants such as Huawei maintaining dominant positions. Despite previous setbacks, Samsung is banking on the strategic deployment of AI to offer unique value propositions tailored to local preferences. This strategy includes collaboration with Chinese tech and internet companies to navigate regulatory complexities and cultural sensitivities.
For instance, Samsung’s partnership with Baidu to integrate the Ernie chatbot into its Galaxy S24 smartphones exemplifies its localized AI strategy. Such collaborations are essential for foreign firms navigating China’s stringent regulations and competitive landscape.
Francisco Jeronimo, vice president for devices research at IDC, commented on Samsung’s AI ambitions in China, noting the challenges of building brand awareness against entrenched local players. He questioned the potential impact of Samsung’s AI innovations in a market already saturated with competitive alternatives from Huawei, Xiaomi, and Honor.
Despite these challenges, Roh remains optimistic about Samsung’s incremental progress in China, emphasizing a phased approach to introducing premium devices and expanding distribution channels. He underscored Samsung’s commitment to meeting consumer demands with products and features tailored to local tastes and preferences.
Conclusion:
Samsung’s focused development of Galaxy AI for the Chinese market signifies a strategic shift towards leveraging advanced AI technologies to regain competitiveness. Despite challenges posed by dominant local competitors, Samsung’s targeted approach and partnerships aim to position it favorably in China’s dynamic smartphone landscape.
