Samsung Electronics is planning to double the number of its mobile devices equipped with “Galaxy AI” features this year, leveraging Google’s Gemini technology. This strategic move aims to give the company an advantage over competitors amid the intensifying global competition in artificial intelligence. The South Korean tech giant had already integrated Gemini-powered AI features into around 400 million mobile products, including smartphones and tablets, by the end of the previous year, with plans to increase this number to 800 million by 2026.
T M Roh, the co-CEO of Samsung Electronics, emphasized the company’s commitment to rapidly incorporating AI into all its products, functions, and services. This initiative not only aims to enhance consumer experiences but also to strengthen Samsung’s position in the market. By aligning with Google’s Android mobile platform, Samsung is poised to amplify the capabilities of its developer community, marking a significant advancement in the competition for consumer adoption of AI technologies alongside players like OpenAI.
Samsung’s overarching goal is to regain leadership in the smartphone market, challenging rivals such as Apple and Chinese manufacturers. The company’s comprehensive approach includes integrating AI services across its consumer products, diversifying its offerings beyond smartphones to encompass televisions and home appliances. This strategic direction, spearheaded by Roh, seeks to differentiate Samsung’s products and services, particularly in comparison to Apple, which held the top spot in the smartphone market according to Counterpoint.
The launch of Google’s Gemini 3 in November has accelerated the AI landscape, prompting responses from competitors like OpenAI. The competitive environment has spurred innovation, with companies racing to enhance their AI models and services. Samsung, under Roh’s leadership, anticipates a swift adoption of AI technologies, citing a significant increase in consumer awareness of its Galaxy AI brand. Despite current skepticism towards AI, Roh foresees a rapid mainstream acceptance of these technologies in the near future.
While search functionality remains the most popular AI feature on mobile devices, consumers are increasingly utilizing generative AI tools for editing, productivity tasks, translations, and summaries. Samsung’s Galaxy AI encompasses a suite of AI features, leveraging both Google’s Gemini model and Samsung’s Bixby for various tasks. The market responded positively to Samsung’s strategic direction, with a 7.5 percent increase in its shares following the announcement of a projected profit surge for the fourth quarter, driven by the global chip shortage.
Acknowledging the impact of the memory chip shortage on its semiconductor business, which constitutes a significant revenue source, Samsung anticipates challenges in its smartphone business. Roh emphasized that the memory chip crisis affects not only mobile phones but also other consumer electronics, necessitating collaborative efforts to mitigate its repercussions. Market analysts project a contraction in the global smartphone market next year due to the memory chip shortage potentially driving up phone prices.
Regarding foldable phones, a segment pioneered by Samsung in 2019, Roh noted a slower-than-expected growth trajectory attributed to engineering complexities and limited compatible applications. Despite these challenges, Samsung anticipates the mainstream adoption of foldable phones within the next few years. The company remains optimistic about the future of foldable phones, highlighting a high user retention rate within this segment. While Samsung currently dominates the foldable smartphone market, competition looms from Chinese competitors like Huawei and the anticipated entry of Apple into the foldable phone market.