Samsung Bets on Tailored AI to Regain Ground in China’s Smartphone Market

Samsung is developing AI features specifically for the Chinese market in a bid to regain lost market share, as it faces intense competition from local players like Huawei.

Tailored AI development for China: Samsung’s mobile chief, TM Roh, revealed that the company is creating a suite of artificial intelligence features called Galaxy AI with a focus on the Chinese market:

• Samsung aims to satisfy Chinese consumers by advancing mobile AI technology that caters to their specific needs and preferences.
• The company believes that developing AI features tailored for China will contribute to its recovery in the highly competitive Chinese smartphone market.

Samsung’s struggle in China: Despite being the world’s largest smartphone market, China has been a challenging landscape for Samsung in recent years:

• The South Korean tech giant’s smartphone market share in China has fallen below 1%, with local players like Huawei dominating the market.
• Samsung has attempted to revamp its strategy in China for several years with little success, and now hopes that AI will provide the necessary features to attract Chinese users.

Partnering with local companies: To navigate the complex regulations and internet landscape in China, Samsung will likely need to collaborate with local tech and internet companies:

• Earlier this year, Baidu integrated its Ernie chatbot into Samsung’s Galaxy S24 smartphones, demonstrating the importance of partnerships in delivering AI features to the Chinese market.
• Foreign firms like Apple, which recently announced its Apple Intelligence AI suite, face similar challenges in launching AI features in China and may also need to partner with local companies.

Broader implications: While Samsung’s efforts to introduce tailored AI features in China may help the company gain some ground, industry experts believe it may not make a significant difference in the short term:

• Samsung’s brand awareness in China remains low, and Chinese consumers may be hesitant to switch from local brands like Huawei, Xiaomi, and Honor, which are also introducing their own AI applications.
• To succeed in China, Samsung will need to offer unique and compelling AI features that can rival those of domestic competitors and convince consumers to make the switch.

As Samsung continues to develop its Galaxy AI capabilities for the Chinese market, it remains to be seen whether this strategy will be enough to help the company regain a foothold in the fiercely competitive landscape. The success of this approach will likely depend on Samsung’s ability to create truly innovative and localized AI features that resonate with Chinese consumers and differentiate its smartphones from those of its rivals.