Despite Strike, Samsung Accelerates in Generative AI to Remain Number One in Smartphones

Shaken by an unprecedented and unlimited general strike in South Korea, Samsung, once again the world number one in cell phone sales, is ignoring this turbulence to accelerate in generative artificial intelligence (AI) with new tools integrated into all of its products.

Asked by AFP, during a conference organized in Paris on Wednesday, about this social movement which began on Monday after the failure of salary negotiations, management did not wish to react, sticking to its roadmap which planned to talk about AI.

After kicking off its strategy in this area in January by integrating its tools called “Galaxy AI” into its new S24 smartphones, Samsung will expand them to all of its products, from wireless headphones to smartwatches, including its first connected ring.

“When we launched the S24, we proclaimed that by the end of the year, Galaxy AI would be integrated into 100 million devices. But the progress has been accelerated. So now we can say that by the end of the year, it will be available on 200 million devices,” TM Roh, the head of the South Korean giant’s mobile division, told AFP.

Generating automatic text content from a few words or simultaneous translation available during telephone or in-person conversations, generative AI has conquered the world in 2023 and is sparking a frantic race between major technology groups.

“Overall, more than $1 billion is being invested in advancing and strengthening AI at Samsung Mobile. At the [la maison mère] Samsung Electronics, the investment in AI resources is much more massive,” explains TM Roh, without giving details.

Connected ring

“While Samsung has communicated well on — Galaxy AI — by pre-empting the field, AI services are still limited and AI is not yet an essential selection criterion for a cell phone but simply a tool to demonstrate the capacity for innovation,” Thomas Husson, analyst at Forrester, emphasizes to AFP.

And while the Apple brand unveiled “Apple Intelligence” at the beginning of June, the new nomenclature for generative AI that will equip its devices from the iPhone to the Mac, it “does not yet have the means to fully realize its vision, still having to rely on its partnership with OpenAI and being limited by European regulations,” he adds.

After being dethroned by its American competitor in 2023, Samsung regained its place as the leading smartphone supplier in the first quarter of 2024, according to specialist firm IDC, with more than 60 million devices sold (-0.7% over one year), or almost 21% market share.

For comparison, Apple sold more than 50 million iPhones from January to March, representing 17.3% of the global market and 9.6% less than the same period last year.

Around the two strategic pillars of AI and the premium segment, like its sixth generation of foldable cell phones unveiled on Wednesday, Samsung also intends to continue its diversification into connected health products.

Unveiled in January without giving further details, the connected ring called “Galaxy Ring” will be marketed in a “limited number” of markets (United States, China, South Korea, Germany, United Kingdom, France, etc.) from July 24, the company also announced.

A first on the consumer electronics market, this ring allows its user to collect more precise information on their sleep status or heart rate using sensors.

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