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But China, the world’s largest smartphone market, has been a difficult market for Samsung in recent years. Its smartphone market share is less than 1%, dominated by local players like Huawei.
Samsung has been trying to rethink its China strategy for several years, without much success. The tech giant is now hoping that artificial intelligence will help it equip its smartphones with the features needed to attract Chinese users.
“We are and will be developing our Galaxy AI capabilities particularly for this market,” TM Roh, head of Samsung’s mobile business, told CNBC in Korean through a translator in an interview.
“I believe that by making efforts to create a mobile AI for China, a mobile AI that can meet the needs of Chinese consumers, by advancing this technology, it will contribute to the recovery that we are going to have in the Chinese market,” he said.
Roh didn’t give too many details about what this AI Galaxy might look like in China, but said it would rely on collaboration with local tech and internet companies.
For example, this year, Baidu integrated its chatbot Ernie into Samsung’s Galaxy S24 smartphones, as part of a partnership between the two companies.
AI in China is complicated by strict regulations around the technology and Beijing’s control over the internet landscape.
Foreign companies looking to launch AI capabilities in China will likely have to partner with local companies.
Apple, which announced its suite of Apple Intelligence artificial intelligence features this year, has yet to give a launch date in China, as it likely faces similar challenges to Samsung.
Francisco Jeronimo, vice president of devices research for Europe, Middle East and Africa at IDC, told CNBC that introducing AI features in China “won’t make a huge difference” to its fortunes because Samsung’s brand awareness is too low and Chinese players are also introducing rival apps.
“We all know that China is a leading market and country in the field of artificial intelligence. What can Samsung bring to the market that is so unique that Chinese consumers will abandon their Huawei, Xiaomi and Honor smartphones and buy a Samsung?” Jeronimo asks.
Roh admitted that competition in the Chinese smartphone market is “more intense than anywhere else.”
He said Samsung’s strategy in China revolves around introducing high-end devices to the market and expanding distribution and retail channels.
“Currently, even though it’s piecemeal, we’re moving forward step by step, joining forces to create the products and features that will be sought after by consumers and that will be able to satisfy consumers,” Roh said.