Samsung Electronics Co. Ltd. is intensifying its commitment to artificial intelligence (AI) across its mobile technology platforms, signaling a strategic push to significantly increase the integration of AI-powered features in its devices. Currently, Samsung's Galaxy AI, which incorporates technology primarily driven by Alphabet Inc.'s Google Gemini models, operates on approximately 400 million smartphones and tablets. According to statements from Co-CEO TM Roh, the company plans to double this number, targeting around 800 million AI-enabled devices by the year 2026.
This substantial expansion aims to weave AI functionality throughout Samsung's entire product ecosystem, encompassing all operational areas and services. By embedding AI more deeply, Samsung intends to enhance user experiences and intensify competition with key market players such as Apple Inc. in the global smartphone landscape.
Samsung's AI initiative includes features powered by a combination of Google's Gemini models and its proprietary digital assistant, Bixby, indicating a dual-sourced approach in AI technology deployment. This strategy suggests an effort to leverage advanced AI capabilities from external partners while continually developing in-house solutions to differentiate its offerings.
Despite these ambitious AI expansion goals, Samsung faces significant challenges. TM Roh highlighted rising memory costs as a critical factor placing pressure on smartphone manufacturing margins. This cost dynamic may necessitate price increases, potentially impacting Samsung's competitiveness and profitability in the consumer electronics sector.
Additionally, Samsung's developments in foldable smartphone technology appear to be progressing more slowly than initially anticipated. The company reports that ongoing engineering challenges and limited software support have slowed adoption rates in the foldable segment. Nevertheless, Roh projects that foldable phones will become mainstream products within the next two to three years, suggesting continued investment and optimism in this innovative category.
While Samsung pursues expanded AI integration and foldable technology improvements, Apple is concurrently strengthening its position in the global smartphone market. The release of the iPhone 17 has driven robust sales, contributing to the company's surpassing of fourth-quarter revenue and earnings expectations. This financial performance places Apple on course to reclaim its status as the world's largest smartphone manufacturer for the first time since 2011.
Market analysis from Counterpoint Research indicates Apple is projected to experience a 10% year-over-year growth in unit sales during 2025, more than doubling Samsung's anticipated 4.6% growth rate for the same period. Ongoing demand in China, prospects for a lower-cost iPhone 17e, and Apple's longer-term ambitions to enter the foldable smartphone market potentially position the company to extend its lead over Samsung.
As of Monday's trading, Apple shares showed a slight increase, reflecting market confidence in the company's performance trajectory. Meanwhile, Samsung continues to navigate a complex environment marked by heightened competition, evolving consumer preferences, and economic pressures impacting production costs.
Samsung's strategy to deepen AI utilization across its device portfolio highlights the company's recognition of AI as a key driver for future smartphone innovation and market differentiation. Its partnership with Google's AI technologies, alongside its own digital assistant development, demonstrates a multifaceted approach aimed at delivering enhanced features and maintaining consumer interest.
Nonetheless, the company must address cost inflation and technical hurdles in foldable devices to sustain its competitive edge. As both Samsung and Apple accelerate innovations in product capabilities and AI integration, the evolving dynamics of the smartphone market will depend heavily on how effectively each can balance technological advancements with cost and operational efficiency.
This substantial expansion aims to weave AI functionality throughout Samsung's entire product ecosystem, encompassing all operational areas and services. By embedding AI more deeply, Samsung intends to enhance user experiences and intensify competition with key market players such as Apple Inc. in the global smartphone landscape.
Samsung's AI initiative includes features powered by a combination of Google's Gemini models and its proprietary digital assistant, Bixby, indicating a dual-sourced approach in AI technology deployment. This strategy suggests an effort to leverage advanced AI capabilities from external partners while continually developing in-house solutions to differentiate its offerings.
Despite these ambitious AI expansion goals, Samsung faces significant challenges. TM Roh highlighted rising memory costs as a critical factor placing pressure on smartphone manufacturing margins. This cost dynamic may necessitate price increases, potentially impacting Samsung's competitiveness and profitability in the consumer electronics sector.
Additionally, Samsung's developments in foldable smartphone technology appear to be progressing more slowly than initially anticipated. The company reports that ongoing engineering challenges and limited software support have slowed adoption rates in the foldable segment. Nevertheless, Roh projects that foldable phones will become mainstream products within the next two to three years, suggesting continued investment and optimism in this innovative category.
While Samsung pursues expanded AI integration and foldable technology improvements, Apple is concurrently strengthening its position in the global smartphone market. The release of the iPhone 17 has driven robust sales, contributing to the company's surpassing of fourth-quarter revenue and earnings expectations. This financial performance places Apple on course to reclaim its status as the world's largest smartphone manufacturer for the first time since 2011.
Market analysis from Counterpoint Research indicates Apple is projected to experience a 10% year-over-year growth in unit sales during 2025, more than doubling Samsung's anticipated 4.6% growth rate for the same period. Ongoing demand in China, prospects for a lower-cost iPhone 17e, and Apple's longer-term ambitions to enter the foldable smartphone market potentially position the company to extend its lead over Samsung.
As of Monday's trading, Apple shares showed a slight increase, reflecting market confidence in the company's performance trajectory. Meanwhile, Samsung continues to navigate a complex environment marked by heightened competition, evolving consumer preferences, and economic pressures impacting production costs.
Samsung's strategy to deepen AI utilization across its device portfolio highlights the company's recognition of AI as a key driver for future smartphone innovation and market differentiation. Its partnership with Google's AI technologies, alongside its own digital assistant development, demonstrates a multifaceted approach aimed at delivering enhanced features and maintaining consumer interest.
Nonetheless, the company must address cost inflation and technical hurdles in foldable devices to sustain its competitive edge. As both Samsung and Apple accelerate innovations in product capabilities and AI integration, the evolving dynamics of the smartphone market will depend heavily on how effectively each can balance technological advancements with cost and operational efficiency.