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Samsung is tailoring its suite of artificial intelligence features, known as Galaxy AI, specifically for the Chinese market, as part of its strategy to regain a foothold in the world’s largest smartphone market. This initiative was announced by TM Roh, head of Samsung’s mobile business, in an interview with CNBC.
The South Korean tech giant introduced Galaxy AI with its S24 smartphone series this year, aiming to entice users to upgrade to premium devices. On Wednesday, Samsung unveiled two new foldable smartphones, each equipped with new AI features, as it continues to enhance its technological capabilities.
Despite these advancements, Samsung faces significant challenges in China, where its market share has plummeted to less than 1%, largely due to fierce competition from local manufacturers like Huawei. Samsung’s efforts to revamp its strategy in China have seen limited success over the past few years. The company now hopes that its AI advancements will provide the innovative features necessary to attract Chinese consumers.
“We are especially developing and we are going to especially develop our Galaxy AI capabilities for that market,” TM Roh said. “I believe by making efforts to create mobile AI for China, mobile AI that can satisfy that will be wanted by the Chinese consumers, by advancing this technology that will contribute to the recovery we’re going to have in the Chinese market.”
Roh did not disclose specific details about the Galaxy AI features being developed for China but emphasized the importance of collaborating with local technology and internet companies. One such partnership is with Baidu, which integrated its Ernie chatbot into Samsung’s Galaxy S24 smartphones earlier this year.
Developing AI for the Chinese market is particularly complex due to the country’s stringent regulations on technology and its tightly controlled internet landscape. Foreign firms, including Samsung, need to partner with local companies to launch AI features successfully in China.
Apple, which announced its Apple Intelligence AI suite this year, has also faced delays in launching these features in China, encountering similar challenges as Samsung.
Francisco Jeronimo, vice president for devices research for Europe, the Middle East, and Africa at IDC, expressed skepticism about the potential impact of Samsung’s AI initiative in China. “The introduction of AI features to China won’t make a massive difference to its fortunes as brand awareness of Samsung is too low and Chinese players are also introducing rival applications,” he said. Jeronimo questioned, “What can Samsung bring to the market that is so unique for Chinese consumers to chuck away their Huawei, Xiaomi, and Honor smartphones and buy a Samsung?”
Roh acknowledged the intense competition in China’s smartphone market, describing it as “more heated than anywhere else.” He outlined Samsung’s strategy, which involves introducing premium devices and expanding distribution and retail channels in China.
“Currently, although piecemeal, but we are making progress step by step, we are putting together our efforts to create the products and features that will be wanted by the consumers and that can satisfy the consumers out there,” Roh concluded.
Samsung remains committed to its goal of regaining market share in China through innovative AI features and strategic partnerships with local companies.
